General Appropriations Bill H. 4600 for the fiscal year beginning July 1, 1996
PART II PAGE 502 1 PART II 2 Permanent Provisions 3 4 5 SECTION 1 6 7 The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of Laws 8 of South Carolina, 1976, and all supplements to the Code. 9 10 11 SECTION 2 12 13 TO REPEAL SECTIONS 11-11-60, 11-11-130, AND 11-25-110 OF THE 1976 CODE, RELATING TO OBSOLETE 14 PROVISIONS RELATING TO THE FORMER RESPONSIBILITIES OF THE STATE BUDGET AND CONTROL 15 IN THE BUDGET-MAKING PROCESS AND AGENCY REPORTING REQUIREMENTS. 16 17 A. Sections 11-11-60, 11-11-130, and 11-25-110 of the 1976 Code are repealed. 18 19 B. This section takes effect July 1, 1996. 20 21 22 SECTION 3 23 24 TO REPEAL SECTION 1-11-21 OF THE 1976 CODE, RELATING TO REPORTING DATES FOR THE ANNUAL 25 BUDGET REPORT. 26 27 A. Section 1-11-21 of the 1976 Code is repealed. 28 29 B. This section takes effect July 1, 1996. 30 31 32 SECTION 4 33 34 TO AMEND SECTION 48-48-140 OF THE 1976 CODE, RELATING TO THE TAX ON LOW-LEVEL 35 RADIOACTIVE WASTE DISPOSAL OF TWO HUNDRED THIRTY-FIVE DOLLARS A CUBIC FOOT AND THE 36 DISTRIBUTION OF THIS REVENUE, AND SECTION 59-143-10, RELATING TO THE SOUTH CAROLINA 37 EDUCATIONAL ASSISTANCE ENDOWMENT FUND (FUND), SO AS TO CHANGE THE NAME OF THIS FUND 38 TO THE "CHILDREN'S EDUCATION ENDOWMENT". 39 40 A. Section 48-48-140 of the 1976 Code, as added by Section 79, Part II, Act 145 of 1995, is amended to read: 41 42 "Section 48-48-140. (A) There is imposed a tax of two hundred thirty-five dollars a cubic foot on each cubic foot of PART II PAGE 503 1 low-level radioactive waste disposed of in this State. The revenues resulting from the provisions of this section must be used 2 for the South Carolina Educational Assistance Endowment Fund Children's Education Endowment as reflected in 3 appropriations to the State Treasurer in Part I, Section 10 of the 1995-96 general appropriations act and as thereafter 4 provided, except as provided in Subsection (C). 5 (B) The owner or operator of a low-level radioactive waste disposal facility no later than thirty days following the end 6 of each quarter shall submit the following to the South Carolina Department of Revenue and Taxation: 7 (1) a report detailing the quantity and type of waste disposed of during the previous calendar quarter; and 8 (2) a check made payable to the South Carolina Department of Revenue and Taxation for the amount of the tax 9 imposed in (A) above. 10 (C) An amount equal to six dollars a cubic foot of each cubic foot of waste disposed of in this State must be allocated 11 to the Education Finance Act until such time as the program is fully funded. All remaining revenues collected pursuant to 12 this section must be allocated as follows: ninety-five percent of the revenues collected pursuant to this section must be 13 credited to the South Carolina Educational Assistance Endowment Fund Children's Education Endowment, a fund separate 14 and distinct from the general fund of the State, in the manner provided by law, and the remaining revenues must be remitted 15 by the State Treasurer to the governing body of Barnwell County for distribution to each of the parties to and beneficiaries 16 of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established 17 within that order for the distribution of `payments in lieu of taxes' paid by the United States Department of Energy. 18 (D) For purposes of this section `low-level radioactive waste' means property delivered to the low-level radioactive 19 waste disposal facility in Barnwell County for long-term disposal. It does not include materials consumed or disposed of 20 arising out of the operation of the facility. 21 (E) The tax imposed by this section is calculated by multiplying the amount of the tax imposed on a cubic foot by the 22 cubic foot amount specified in the permits required by the South Carolina Department of Health and Environmental Control 23 and submitted at the time of delivery of the low-level radioactive waste." 24 25 B. Section 59-143-10 of the 1976 Code, as added by Section 82, Part II, Act 145 of 1995, is amended to read: 26 27 "Section 59-143-10. There is hereby established the South Carolina Educational Assistance Endowment Fund 28 Children's Education Endowment. The revenue received pursuant to Section 48-48-140(C) must be deposited by the State 29 Treasurer in a fund separate and distinct from the state general fund entitled the `Educational Assistance Endowment Fund' 30 `Children's Education Endowment'. All interest or income earned by the fund shall be retained in the fund and used for its 31 stated purposes which are to provide funding for Public School Facilities Assistance and Higher Education Scholarship 32 Grants. It is the intent of the General Assembly that in creating this endowment that its funds be managed so as to establish 33 and fund these programs permanently. Upon receipt of monies transferred to the Children's Education Endowment Fund 34 by the State Treasurer, thirty percent of these monies must be allocated to Higher Education Scholarship Grants and seventy 35 percent must be allocated to Public School Facility Assistance. Earnings on each allocation shall accumulate for the benefit 36 of that particular program. For purposes of the allocation to Higher Education Scholarship Grants, the Budget and Control 37 Board shall release a minimum of ten million dollars annually beginning with the 1996-97 fiscal year." 38 39 40 SECTION 5 41 42 TO AMEND SECTION 12-28-2720, OF THE 1976 CODE, RELATING TO DISTRIBUTION OF THE REVENUES PART II PAGE 504 1 OF THE 10.34 CENTS A GALLON TAX ON GASOLINE, SO AS TO PHASE-IN THE CREDITING OF THE 2 TOTAL AMOUNT OF THE TAX TO THE STATE HIGHWAY FUND. 3 4 A. Section 12-28-2720 of the 1976 Code, as added by Act 136 of 1995, is amended to read: 5 6 "Section 12-28-2720. The proceeds from ten and thirty-four hundredths cents a gallon of the tax on gasoline only as 7 levied and provided for in this chapter must be distributed as follows: nine and thirty-four hundredths cents on each gallon 8 must be turned over to the Department of Transportation for the purpose of that department, and one cent a gallon must be 9 deposited to the credit of the general fund of the State." 10 11 B. Notwithstanding the provisions of Section 12-28-2720 of the 1976 Code as amended by this section, and for the 12 applicable portion of Fiscal Year 1996-97 only, revenues of the 10.34 cents a gallon tax on gasoline must be distributed as 13 follows: 14 (1) 9.84 cents a gallon must be turned over to the Department of Transportation for the purposes of the department; 15 and 16 (2) one-half cent a gallon must be deposited to the credit of the general fund of the State. 17 18 C. This section takes effect June 1, 1997. 19 20 21 SECTION 6 22 23 TO AMEND SECTION 12-28-2470(C), AS AMENDED, OF THE 1976 CODE, RELATING TO THE "C" FUNDS 24 PROGRAM, SO AS TO INCREASE FROM TWENTY-FIVE TO FIFTY PERCENT THAT PORTION OF A 25 COUNTY'S ALLOCATION OF "C" FUNDS THAT MUST BE EXPENDED ON HIGHWAY CONSTRUCTION, 26 IMPROVEMENTS, AND MAINTENANCE. 27 28 A. Section 12-28-2740(C) of the 1976 Code, as added by Act 136 of 1995, is amended to read: 29 30 "(C) At least twenty-five fifty percent of a county's apportionment of `C' funds must be expended on the state 31 highway system for construction, improvements, and maintenance. The county transportation committee, at its discretion, 32 may expend up to seventy-five fifty percent of `C' construction funds for activities including, but not limited to, local paving 33 or improving county roads, for street and traffic signs, and for other paving projects. Roads constructed of rock must consist 34 of not less than one inch nor more than two and one-half inches of rock or its equivalent." 35 36 B. This section takes effect July 1, 1996. 37 38 39 SECTION 7 40 41 (Highway Patrol Law Enforcement Account) - DELETED PART II PAGE 505 1 SECTION 8 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-935 SO AS TO PROVIDE A PHASED-IN INCREASE 4 IN THE DEPRECIATION ALLOWANCE FOR MANUFACTURER'S MACHINERY AND EQUIPMENT FOR 5 PURPOSES OF THE PROPERTY TAX AND TO PROVIDE FOR THE REIMBURSEMENT OF LOCAL TAXING 6 ENTITIES FOR REVENUES NOT COLLECTED BECAUSE OF THIS ADDITIONAL DEPRECIATION; AND TO 7 AMEND SECTION 12-37-930, AS AMENDED, RELATING TO VALUATION OF PROPERTY AND 8 DEPRECIATION OF MANUFACTURER'S MACHINERY AND EQUIPMENT FOR PURPOSES OF THE 9 PROPERTY TAX, SO AS TO CONFORM IT TO THE PROVISIONS OF SECTION 12-37-935 AS ADDED BY THIS 10 ACT. 11 12 A. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding: 13 14 "Section 12-37-935. (A) Except as provided in Section 12-37-930 for custom molds and dies used in the conduct of 15 manufacturing electronic interconnection component assembly devices for computers and computer peripherals, the original 16 cost must not be reduced more than the percentage provided in the following schedule: 17 18 Property Tax Year Maximum Percentage Depreciation 19 Before 1996 80 percent 20 1996 82 percent 21 1997 84 percent 22 1998 86 percent 23 1999 88 percent 24 After 1999 90 percent. 25 26 (B) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all 27 other funds styled The Depreciation Property Tax Reimbursement Fund. Annually, the General Assembly shall appropriate 28 to this fund an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the 29 additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this 30 section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies used in the 31 conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. 32 Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis." 33 34 B. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further 35 amended to read: 36 37 "In no event may the original cost be reduced more than eighty percent as provided in Section 12-37-935, except this 38 limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component 39 assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the 40 property were owned for the full year. The term `original cost' means gross capitalized cost, including property on which 41 the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the 42 taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of PART II PAGE 506 1 manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds 2 and dies designed, produced, and conditioned to the special order of a manufacturer." 3 4 C. This section takes effect for property tax years beginning after 1995. 5 6 7 SECTION 9 8 9 (Senior Citizens Income Tax Relief) - DELETED 10 11 12 SECTION 10 13 14 TO AMEND SECTION 12-28-2730 OF THE 1976 CODE, RELATING TO THAT PORTION OF GASOLINE TAX 15 CREDITED TO THE SPECIAL WATER RECREATIONAL RESOURCES FUND, SO AS TO PROVIDE FOR THE 16 REIMBURSEMENT OF THE DEPARTMENT OF NATURAL RESOURCES FOR NOXIOUS AQUATIC WEED 17 TREATMENT. 18 19 A. Section 12-28-2730(C) of the 1976 Code, as added by Act 136 of 1995, is amended to read: 20 "(C) The Department of Natural Resources must be reimbursed for engineering, design, rehabilitation, and law 21 enforcement costs incurred in the administration of the provisions of this section,. The Department of Natural Resources 22 must be reimbursed for noxious aquatic weed treatment. but funds Funds for law enforcement and noxious aquatic weed 23 treatment may not exceed one-third of revenues to the special water recreational resources fund. Funds for reimbursement 24 must be transferred from funds collected under the provisions of this section." 25 26 B. This section takes effect July 1, 1996. 27 28 29 SECTION 11 30 31 TRANSFERRING ADMINISTRATION OF THE BATTERED SPOUSE PROGRAM OF THE DEPARTMENT OF 32 SOCIAL SERVICES AND THE RAPE CRISIS CENTER PROGRAM OF THE DEPARTMENT OF HEALTH AND 33 ENVIRONMENTAL CONTROL TO THE STATE OFFICE OF VICTIM'S ASSISTANCE IN THE OFFICE OF THE 34 GOVERNOR. 35 36 A. The following programs are transferred to the jurisdiction and administration of the State Office of Victim's Assistance 37 (office): 38 (1) From the Department of Health and Environmental Control: Rape Crisis Center program; 39 (2) From the Department of Social Services: Battered Spouse program. 40 41 B. All employees, FTE's, appropriations, including general fund appropriations and appropriations of other funds and 42 revenues generated in the operations of these programs, are transferred to the office which shall operate these programs PART II PAGE 507 1 performing the functions these programs provided under their former management, except where such continued operations 2 are not within the purview of the mission of the office, in which case these functions must remain with the transferror 3 agency. 4 5 C. Wherever in law mention is made of the agencies formerly administering the programs transferred by this section, the 6 duties and functions of these agencies with respect to these programs are devolved upon the office and these provisions of 7 law must be construed to reflect these additional duties and functions devolved upon the office. 8 9 D. Administrative and support services of the Department of Health and Environmental Control and the Department of 10 Social Services sufficient to serve the needs of the programs transferred by this section are similarly transferred to the office 11 in the manner that these agencies and the office jointly shall determine. Administrative and support services include, but 12 are not limited to, payroll and accounting, personnel services, computer operations, finance, and all other services essential 13 to serve the needs of these programs. Where agreement is not achieved, the State Budget and Control Board shall direct 14 the transfers it considers appropriate. 15 16 E. Except where inappropriate, the provisions of Section 1613(A), (B) and (C) of Act 181 of 1993 shall apply in 17 accomplishing the transfers provided by this section, mutatis mutandis. 18 19 F. This section takes effect July 1, 1996. 20 21 22 SECTION 12 23 24 TO REPEAL SECTION 11-9-60 OF THE 1976 CODE, RELATING TO CERTAIN OFFICES FURNISHING THE 25 COMPTROLLER GENERAL WITH REPORTS OF EVIDENCES OF INDEBTEDNESS DUE TO THE STATE. 26 27 A. Section 11-9-60 of the 1976 Code is repealed. 28 29 B. This section takes effect July 1, 1996. 30 31 32 SECTION 13 33 34 TO REPEAL SECTION 1-11-380 OF THE 1976 CODE, RELATING TO THE STATEWIDE VENDOR CODING 35 SYSTEM AND SECTION 1-11-390, RELATING TO THE COMPTROLLER GENERAL'S ACCUMULATION AND 36 REPORTING OF EXPENDITURE TRANSACTIONS AND HIS DETERMINATION OF THE SUMMARY LEVEL 37 FOR REPORTING UNDER THE FISCAL ACCOUNTABILITY ACT. 38 39 A. Sections 1-11-380 and 1-11-390 of the 1976 Code are repealed. 40 41 B. This section takes effect July 1, 1996. PART II PAGE 508 1 SECTION 14 2 3 TO REPEAL SECTION 11-5-40 OF THE 1976 CODE, RELATING TO THE ISSUANCE OF DUPLICATE 4 RECEIPTS TO CERTAIN PERSONS. 5 6 A. Section 11-5-40 of the 1976 Code is repealed. 7 8 B. This section takes effect July 1, 1996. 9 10 11 SECTION 15 12 13 TO REPEAL SECTION 11-9-100 OF THE 1976 CODE, RELATING TO THE BUDGET AND CONTROL BOARD'S 14 AUTHORITY TO WITHHOLD APPROPRIATIONS FROM AN AGENCY FAILING TO CORRECT CERTAIN 15 DEFICIENCIES OR VIOLATIONS CITED IN INTERNAL OPERATIONS. 16 17 A. Section 11-9-100 of the 1976 Code is repealed. 18 19 B. This section takes effect July 1, 1996. 20 21 22 SECTION 16 23 24 TO AMEND SECTION 10-1-140 OF THE 1976 CODE, RELATING TO RESPONSIBILITY FOR PERSONAL 25 PROPERTY OF STATE DEPARTMENTS, AGENCIES, AND INSTITUTIONS, SO AS TO PLACE 26 RESPONSIBILITY FOR SUCH PROPERTY IN THE AGENCY HEAD REGARDLESS OF THE NUMBER OF 27 EMPLOYEES. 28 29 A. Section 10-1-140 of the 1976 Code is amended to read: 30 31 "Section 10-1-140. The head of each department, agency or institution of this State, which employs less than one 32 hundred permanent employees, shall be responsible for all personal property under his supervision and each fiscal year shall 33 submit an inventory of all such property, except expendables, to the Director of the Division of General Services no later 34 than August first of each year. The Director of the Division of General Services shall keep an accurate record of all such 35 inventories and shall make such rules and regulations as may be necessary to carry out the provisions of this paragraph. 36 37 The head of each department, agency or institution of this State, which employs more than one hundred permanent 38 employees, shall be is responsible for all personal property under his supervision and each fiscal year shall make an inventory 39 of all such property under his supervision, except expendables. The State Auditor shall make an audit of any such this 40 property whenever as he sees fit considers necessary or whenever when requested to do so." 41 42 B. This section takes effect July 1, 1996. PART II PAGE 509 1 SECTION 17 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 8-15-65 SO AS TO REQUIRE ANNUAL APPROPRIATIONS 4 BY THE GENERAL ASSEMBLY FOR SALARY SUPPLEMENTS FOR COUNTY CLERKS OF COURT, PROBATE 5 JUDGES, SHERIFFS, REGISTERS OF MESNE CONVEYANCES, COUNTY AUDITORS, AND COUNTY 6 TREASURERS TO PROVIDE FOR THE MANNER OF PAYMENT OF THESE SUPPLEMENTS, AND TO 7 PROVIDE FOR A REDUCTION IN THE DISTRIBUTION DUE A COUNTY UNDER THE STATE AID TO 8 SUBDIVISIONS ACT WHEN A COUNTY REDUCES THE SALARY OR REDUCES THE OFFICE FUNDING FOR 9 ANY OF THESE OFFICES. 10 11 A. Chapter 15, Title 8 of the 1976 Code is amended by adding: 12 13 "Section 8-15-65. (A) The General Assembly shall appropriate annually salary supplements for the following county 14 officers: 15 (1) clerks of court; 16 (2) probate judges; 17 (3) sheriffs; 18 (4) registers of mesne conveyances; 19 (5) auditors; 20 (6) treasurers. 21 (B) The amounts appropriated for salary supplements pursuant to subsection (A) must include both salary and related 22 employer contributions and are in addition to amounts provided as compensation for these officials by counties. To the extent 23 that compensation for these officers is reduced by a county or there is any other reduction of expenditures in the operations 24 of their offices, a corresponding reduction must be made in the distribution otherwise due the county pursuant to Chapter 25 27 of Title 6, the State Aid to Subdivisions Act. 26 (C) Except as provided in subsection (B), the salary supplement must be uniform with respect to a particular county 27 officer but may vary between the different category of officers. 28 (D) Amounts appropriated for the officers listed in subsection (A)(1), (2), (3), and (4) must be paid to county treasurers 29 in a lump sum at the beginning of the fiscal year and paid to these officers over a twelve-month period in the same manner 30 that salaries are paid county employees. Amounts appropriated pursuant to this section for the officers listed in subsection 31 (A)(5) and (6) must be administered by the Office of the Comptroller General and paid in accordance with the schedule and 32 method of payment provided for state employees." 33 34 B. This section takes effect July 1, 1996. 35 36 37 SECTION 18 38 39 TO AMEND SECTION 2-1-180 OF THE 1976 CODE, RELATING TO ADJOURNMENT OF THE GENERAL 40 ASSEMBLY, SO AS TO CHANGE THE DATE FOR THE MANDATORY ADJOURNMENT OF THE GENERAL 41 ASSEMBLY FROM THE FIRST THURSDAY IN JUNE TO THE SECOND THURSDAY IN MAY, AND PROVIDE 42 THAT IN ANY YEAR THAT THE HOUSE OF REPRESENTATIVES FAILS TO GIVE THIRD READING TO THE PART II PAGE 510 1 APPROPRIATIONS BILL BY MARCH FIFTEENTH, RATHER THAN MARCH THIRTY-FIRST, THE DATE OF 2 ADJOURNMENT IS EXTENDED BY ONE STATEWIDE DAY FOR EACH STATEWIDE DAY AFTER MARCH 3 FIFTEENTH, RATHER THAN MARCH THIRTY-FIRST, THAT THE HOUSE FAILS TO GIVE THE BILL THIRD 4 READING. 5 6 A. Section 2-1-180 of the 1976 Code is amended to read: 7 8 "Section 2-1-180. The regular annual session of the General Assembly shall adjourn sine die each year not later than 9 5:00 p.m. on the first second Thursday in June May. In any year that the House of Representatives fails to give third reading 10 to the annual General Appropriations Bill by March thirty-first fifteenth, the date of sine die adjournment is extended by one 11 statewide day for each statewide day after March thirty-first fifteenth that the House of Representatives fails to give the bill 12 third reading. The session may also be extended by concurrent resolution adopted by a two-thirds vote of both the Senate 13 and House of Representatives. During the time between 5:00 p.m. on the first second Thursday in June May and the extended 14 sine die adjournment date, as set forth herein, no legislation or other business may be considered except the General 15 Appropriations Bill and any matters approved for consideration by a concurrent resolution adopted by two-thirds vote in both 16 houses." 17 18 B. This section is effective with respect to regular sessions of the General Assembly beginning after 1996. 19 20 21 SECTION 19 22 23 EXTENDING THE REPAYMENT SCHEDULE OF SUMS TRANSFERRED TO THE CITY OF CHARLESTON 24 FROM FUNDS SET ASIDE FOR THE PATRIOT'S POINT AUTHORITY. 25 26 Notwithstanding the provisions of Joint Resolution 586 of 1994, time for the City of Charleston to repay the remaining 27 balance due the State pursuant to that joint resolution is extended. The balance due of $400,000 must be repaid over a period 28 not less than three years in three equal annual installments with the first payment due no later than June 30, 1997. All other 29 conditions on the making and repayment of this loan provided in Joint Resolution 586 of 1994 apply with respect to this 30 extended repayment period. 31 32 33 SECTION 20 34 35 TO AMEND SECTION 59-104-20 OF THE 1976 CODE, RELATING TO THE PALMETTO FELLOWS 36 SCHOLARSHIP PROGRAM, SO AS TO DELETE THE REQUIREMENT THAT THE INSTITUTION IN WHICH 37 THE STUDENT IS ENROLLED SHALL PROVIDE ONE-HALF OF THE SCHOLARSHIP. 38 39 Section 59-104-20 of the 1976 Code, as added by Act 629 of 1988, is amended to read: 40 41 "Section 59-104-20. The Palmetto Fellows Scholarship Program is established to foster scholarship among the state's 42 post-secondary students and retain outstanding South Carolina high school graduates in the State through awards based on PART II PAGE 511 1 scholarship and achievement. Measures must be taken to ensure equitable minority participation in this program. Recipients 2 of these scholarships are designated Palmetto Fellows. Each Palmetto Fellow shall receive a scholarship in an amount 3 designated by the Commission on Higher Education, half to be provided by the postsecondary institution at which he is 4 enrolled. The commission shall promulgate regulations and establish procedures to administer the program and request annual 5 state appropriations for the program." 6 7 8 SECTION 21 9 10 TO AMEND ACT 518 OF 1980, AS AMENDED, RELATING TO, AMONG OTHER THINGS, THE UNIVERSITY 11 OF SOUTH CAROLINA ATHLETIC FACILITIES REVENUE BONDS, SO AS TO REVISE DEFINITIONS, 12 DELETE ISSUANCE APPROVAL REQUIREMENTS BY THE STATE BUDGET AND CONTROL BOARD, 13 EXTEND THE BOND AUTHORITY TO RECONSTRUCTION, RENOVATION, AND EQUIPPING OF ATHLETIC 14 FACILITIES, CONFORM PROVISIONS TO REVISED DEFINITIONS, DELETE THE REQUIREMENT THAT ALL 15 HOME FOOTBALL GAMES BE PLAYED AT THE UNIVERSITY'S STADIUM, TO ALLOW THE ISSUE OF 16 TERM BONDS, AND DELETE SPECIFIC REQUIREMENTS RELATING TO BOND MATURITIES, TO EXTEND 17 THE TAX EXEMPTIONS OF SUCH BONDS AND DELETE AN OBSOLETE REFERENCE, TO DELETE 18 LIMITATIONS AND OBSOLETE PROVISIONS RELATING TO THE SALE OF THESE BONDS, TO MAKE 19 VOLUNTARY THE ESTABLISHMENT OF A BOND RESERVE FUND AND TO ALLOW OTHER PROCEEDS TO 20 BE CREDITED TO THE DEBT SERVICE FUND OR BOND RESERVE FUND, AND TO AUTHORIZE TRUSTEES 21 ADDITIONAL POWERS WITH RESPECT TO THE USE OF PROCEEDS OF THESE BONDS. 22 23 A. Items (2), (3), (7), and (9) of Section 9A, Act 518 of 1980, as amended by Section 2, Act 545 of 1986, are further 24 amended to read: 25 26 "(2) The term `Athletic Facilities' means all facilities designated revenue producing by the University as Athletic 27 Facilities now owned or hereafter acquired by the University for the use of which an admission fee is charged and the 28 revenues from which are pledged to the system of facilities established by this act. 29 (3) The term `Bond Reserve Fund' means the special fund to be which may be established by the trustees pursuant to 30 this act, which must be in the custody of the State Treasurer and which is primarily established for the purpose of providing 31 a reserve with which to meet the payment of the principal of and interest on bonds issued pursuant to this act in the event 32 that payments otherwise required for the Debt Service Fund are insufficient to meet the payment of the principal and interest 33 as and when they become due and payable. Monies in the Bond Reserve Fund may also may be used to pay costs of Athletic 34 Facilities in accordance with the provisions of subsections N and P of this section. 35 (7) The terms `Improvements' means: 36 (i) the enlargement of and improvements to Carolina Stadium including all necessary equipment paid for with 37 the proceeds of bonds or with excess funds in the Bond Reserve Fund; and or 38 (ii) improvements to any other Athletic Facilities; or 39 (iii) the acquisition, construction, reconstruction, renovation, or equipping of any other Athletic Facility. 40 (9) The term `State Board' means the South Carolina Budget and Control Board. Reserved." 41 42 B. Section 9C of Act 518 of 1980, as last amended by Section 2, Act 545 of 1986, is further amended to read: PART II PAGE 512 1 "C. May Issue Bonds. 2 Subject to obtaining the approval of the State Board expressed by resolution duty adopted, The Trustees are authorized 3 to issue from time to time not exceeding twenty million dollars of Bonds for the purpose of acquiring, constructing, 4 reconstructing, renovating, or equipping Athletic Facilities. In the event If the Trustees, in authorizing the issuance of Bonds 5 pursuant to this section, prescribe by resolution that there must be on deposit in the Bond Reserve Fund certain sums at the 6 time of the delivery of the Bonds, the Trustees are empowered to utilize a portion of the proceeds of any series of Bonds 7 issued pursuant to this section in order to meet the requirement." 8 9 C. The penultimate paragraph of Section 9N of Act 518 of 1980, as last amended by Section 4, Act 545 of 1986, is further 10 amended to read: 11 12 "Whenever the Bond Reserve Fund, if any, exceeds the reserve required for Bonds then outstanding the Trustees are 13 empowered with the approval of the State Board to withdraw the excess and apply it to other Athletic Facilities or 14 improvements or for any other corporate purpose of the University." 15 16 D. Subsection P(1) of Section 9 of Act 518 of 1980 is amended to read: 17 18 "(1) (a) To use proceeds of the Bonds to acquire, construct, reconstruct, or renovate Athletic Facilities, to pay the 19 cost of issuance of the Bonds, to pay the cost of bond insurance and other credit enhancement and defray the cost of interest 20 accruing on the bonds for such time as determined by the Trustees. 21 (b) To covenant and agree throughout the life of the Bonds, that the Admission Fee and the Special Student Fee 22 shall must be imposed, maintained, and revised when necessary, in such amount, without limitation as to rate, as shall be 23 is sufficient to meet the payment of the principal of and interest on the Bonds as they become due, and to create the reserve, 24 if any, required by such resolutions for outstanding Bonds in the Bond Reserve Fund. The Bond Reserve Fund shall, except 25 as hereinafter provided, must be used only to meet the payment of the principal of and interest on the Bonds when moneys 26 monies in the Debt Service Fund shall be is insufficient therefor, and shall must be maintained in such a manner as to insure 27 it ensure it's availability for such purposes. Whenever the Debt Service Fund shall equal all payments of principal and 28 interest due and to become due in the then current fiscal year, and the Bond Reserve Fund, if any, shall exceed the reserve 29 prescribed for bonds then outstanding, the State Treasurer may with the approval of the Trustees and the State Board may 30 apply such excess to the defeasance of Bonds then outstanding in the manner prescribed by Section T hereof in this section." 31 32 E. Subsection P(10) of Section 9 of Act 518 of 1980, as last amended by Section 5, Act 545 of 1986, is further amended 33 to read: 34 35 "(10) To operate and maintain all Athletic Facilities in good repair and to covenant that all varsity football games of 36 the University which are `home' games, be played at Carolina Stadium." 37 38 F. Subsections G, I, L, N(2), and O of Section 9, Act 518 of 1980 are amended to read: 39 40 "G. The Bonds shall must be issued as serial or term bonds at such prices, maturing in equal or unequal amounts at 41 such times and on such occasions and shall must be in such denominations as the Trustees shall determine; provided always 42 that the last maturing Bonds of any issue shall be expressed to mature not later than twenty-five years from their date, and PART II PAGE 513 1 the first maturing Bonds of any issue, shall fall due not later than three years from their date. They shall bear such rate or 2 rates of interest, payable on such occasions as the trustees shall prescribe, and shall be are payable in such medium of 3 payment, and at such place or places as such resolutions shall prescribe. Any Bonds may be issued with provisions 4 permitting their redemption prior to before their stated maturity at such time and under such conditions as the Trustees shall 5 prescribe. Bonds made subject to redemption prior to before their stated maturities may contain a provision requiring the 6 payment of a premium for the privilege of exercising the right or redemption, in such amount as the Trustees shall prescribe. 7 All Bonds that are subject to redemption shall contain a statement to that effect on the face of each Bond. Any resolution 8 authorizing redeemable Bonds shall contain provisions, specifying the manner of call for redemption and the notice thereof 9 that must be given. 10 I. The Bonds and all interest to become due thereon on them shall have the tax-exempt status prescribed by Section 11 12-1-60 of the Code of Laws of South Carolina, 1976 are exempt from all state, county, municipal, and school taxes, and 12 franchise and license fees. 13 L. All Bonds shall must be disposed of in such manner as the Trustees shall determine, except that no sale privately 14 negotiated without public advertisement, shall be made unless the approval of the State Board shall be obtained. If the 15 Trustees shall elect to sell the Bonds at public sale, at least one advertisement thereof of the sale shall appear in a financial 16 paper published in the City of New York, State of New York, or in a newspaper of general circulation in South Carolina 17 not less than seven days prior to before the occasion fixed for the opening of bids. 18 N. (2) The Trustees shall immediately may establish the Bond Reserve Fund. At the time of the issuance of any Bonds 19 pursuant to this section, the Trustees shall may prescribe by resolution the required sums which shall must be deposited and 20 maintained in the Bond Reserve Fund. 21 O. The Trustees shall be are empowered to deposit, in either the Debt Service Fund, or in the Bond Reserve Fund, 22 prior to before the issuance of any Bonds, moneys monies, derived from other sources, including funds raised by the Athletic 23 Department of the University. The Trustees further are empowered to deposit in either the Debt Service Fund or Bond 24 Reserve Fund, at any time proceeds from the sale of any Bonds and any other available funds to the University. They shall 25 also be are empowered throughout the life of the Bonds to make payments from such other sources to the Debt Service Fund 26 or into the Bond Reserve Fund. In calculating the amount or rate of the Admission Fee and Special Student Fee for any 27 year, the Trustees may take into account moneys monies then actually paid into the Debt Service Fund from such other 28 sources which are then available to meet the payment of the principal of and interest on the Bonds for such fiscal year." 29 30 31 SECTION 22 32 33 TO AMEND TITLE 59 OF THE 1976 CODE, RELATING TO EDUCATION, BY ADDING CHAPTER 147 34 ENACTING THE HIGHER EDUCATION REVENUE BOND ACT AUTHORIZING FOUR-YEAR PUBLIC 35 INSTITUTIONS OF HIGHER EDUCATION TO ISSUE REVENUE BONDS TO FINANCE IMPROVEMENTS AND 36 EQUIPMENT AND TO PROVIDE THE TERMS AND CONDITIONS UNDER WHICH THE BONDS MAY BE 37 ISSUED. 38 39 A. Title 59 of the 1976 Code is amended by adding: 40 PART II PAGE 514 1 "CHAPTER 147 2 3 Higher Education 4 Revenue Bond Act 5 6 Section 59-147-10. This chapter may be cited as the Higher Education Revenue Bond Act. 7 8 Section 59-147-20. As used in this chapter: 9 (1) `board' means the board of trustees of the university; 10 (2) `equipment' means items with a useful life of at least fifteen years; 11 (3) `facilities' means the real and personal property and equipment specified in Section 59-147-20(2) of this chapter 12 whether or not the acquisition or construction thereof is financed from the proceeds of bonds issued pursuant to this chapter; 13 (4) `revenues' means the revenues derived or to be derived from the operation, sale, lease, or other disposition of the 14 facilities; and 15 (5) `university' means all four-year public institutions of higher education. 16 17 Section 59-147-30. The university may issue revenue bonds of the university for the purpose of financing or refinancing 18 in whole or in part the cost of acquisition, construction, reconstruction, renovation and improvement of land, buildings, and 19 other improvements to real property and equipment for the purpose of providing facilities serving the needs of the university 20 including, but not limited to, dormitories, apartment buildings, dwelling houses, bookstore and other university operated 21 stores, laundry, dining halls, cafeterias, parking facilities, student recreational, entertainment and fitness related facilities, 22 inns, conference and other nondegree educational facilities and similar auxiliary facilities of the university and any other 23 facilities which are auxiliary to any of the foregoing excluding, however, athletic department projects which primarily serve 24 varsity athletic teams of the university. 25 26 Section 59-147-40. Revenue bonds issued under this chapter must be authorized by a resolution or resolutions of the 27 board of the university. The resolution of the university may, in the discretion of the board, contain provisions, which shall 28 constitute a part of the contract between the university and the several holders of the bonds, as to any of the following: 29 (1) the custody, security, use, expenditure, or application of the proceeds of the bonds including, without limitation, 30 the use of bond proceeds to pay the cost of acquisition, construction, reconstruction or renovation of facilities, expenses of 31 issuance of the bonds, interest on the bonds for such period of time as the board may determine and the cost of bond 32 insurance or other credit enhancement and to fund reserves established with respect to the bonds; 33 (2) the acquisition, renovation, construction, reconstruction, or completion of the facilities for which the bonds are 34 issued; 35 (3) the use, regulation, operation, maintenance, insurance, or disposition of the facilities the revenues from which are 36 pledged to secure payments with respect to the bonds or restrictions on the exercise of the powers of the board to dispose 37 of or to limit or regulate the use of such facilities; 38 (4) the payment of the principal of, redemption premium, if any, or interest on the bonds and the sources and the 39 methods of the payment, the rank or priority of the bonds as to any lien or security or the acceleration of the maturity of 40 the bonds; 41 (5) the use and disposition of the revenues including, without limitation, the pledging, setting aside, or depositing with 42 a trustee all or part of the revenues to secure the payment of the principal of, redemption premium, if any, and interest on PART II PAGE 515 1 the bonds and the payment of expenses of operation and maintenance of the facilities; 2 (6) the setting aside out of bond proceeds, the revenues or other available funds of reserves or sinking funds and the 3 source, custody, security, regulation, and disposition of them; 4 (7) the determination of the revenues, subject to the provisions of Section 59-147-110 or other available funds to be 5 pledged as security for payments with respect to the bonds and for the expenses of operation and maintenance of the facilities; 6 (8) the fixing, establishment, collection, and enforcement of the rentals, fees, or other charges from students, faculty 7 members, and others using or being served by, or having the right to use or be served by, the facilities the revenues from 8 which are pledged to secure payments with respect to the bonds and the disposition and application of the revenues so 9 charged and collected; 10 (9) limitations on the issuance of additional bonds or any other obligations or the incurrence of indebtedness payable 11 from the same revenues from which the bonds are payable; 12 (10) rules to ensure the use of the facilities by students or members of the faculty of the university to the maximum 13 extent to which the building or equipment is capable of serving the students or faculty members; 14 (11) the procedure, if any, by which the terms of any covenant or contract with, or duty to, the holders of the bonds 15 may be amended or abrogated, the amount of bonds to which the holders of which must consent, and the manner in which 16 the consent may be given or evidenced; and 17 (12) any other matter or course of conduct which, by recital in the resolution or resolutions authorizing or providing 18 for the bonds, is declared to further secure the payment of the principal of or the interest on the bonds or to further the 19 purposes for which the facilities are being acquired, constructed, reconstructed, renovated, or equipped and the bonds being 20 issued. 21 22 Section 59-147-50. Revenue bonds may be issued in one or more series at such prices, may bear such date or dates, 23 may mature at such time or times, not exceeding forty years from their respective date, may bear interest at such fixed or 24 variable rate or rates, may be payable in such medium of payment and at such place or places, may be in such denomination 25 or denominations, may be in such form, either coupon or registered and either certified or uncertificated, may carry such 26 registration privileges, may be subject to such terms of redemption before maturity, with or without premium, and may 27 contain such terms, covenants, and conditions as the resolution authorizing the issuance of the bonds may provide. Except 28 as otherwise specified in the authorizing resolution, the bonds shall be fully negotiable within the meaning of and for all the 29 purposes of the Uniform Commercial Code. 30 31 Section 59-147-60. The bonds shall be exempt from all state, county, municipal, and school taxes and franchise and 32 license fees. 33 34 Section 59-147-70. The bonds must be signed in the corporate name of the university by the manual or facsimile 35 signature of the acting chairman of the board of the university, under the corporate seal of the university attested by the 36 manual or facsimile signature of the acting secretary of the board. Any interest coupons attached to the bonds must be signed 37 by the facsimile signatures of these officers. The bonds may be issued notwithstanding that any of the officials signing them 38 or whose facsimile signatures appear on the coupons have ceased to hold office at the time of the issue or at the time of the 39 delivery of the bonds to the purchaser. 40 41 Section 59-147-80. The bonds must be sold at public or private sale upon such terms and conditions as the board of 42 the university considers advisable. PART II PAGE 516 1 Section 59-147-90. The board or its proper administrative officers shall file with the State Treasurer within thirty days 2 from the date of their issuance a complete description of all obligations entered into by the board, with the rates of interest, 3 maturity dates, annual payments, and all pertinent data. 4 5 Section 59-147-100. All provisions of a resolution authorizing or providing for the issuance of the bonds in accordance 6 with Section 59-147-40 and of the covenants and agreements constitute valid and legally binding contracts between the 7 university and the several holders of the bonds, regardless of the time of issuance of the bonds, and are enforceable by the 8 holder or holders by mandamus or other appropriate action, suit, or proceeding at law or in equity in any court of competent 9 jurisdiction. 10 11 Section 59-117-110. The bonds must be made payable solely from all or such portion of the revenues as the university 12 in its discretion may designate pursuant to the authorizing resolution and also from any other available funds of the university 13 designated by the university pursuant to the authorizing resolution except funds of the university derived from appropriations 14 received from the General Assembly and any tuition funds pledged to the repayment of state institution bonds. The bonds 15 are not general obligations of the State. Neither the members of the board nor any person signing the bonds shall be 16 personally liable for the bonds. No bonds may be issued pursuant to this chapter unless an identified source or sources of 17 revenue are designated for the repayment of the bonds. 18 19 Section 59-117-120. This chapter may not be construed as allowing any four-year public institution of higher education 20 to issue any revenue bonds of a type not otherwise allowed by law for the particular institution as of June 30, 1996." 21 22 B. This section takes effect July 1, 1996. 23 24 25 SECTION 23 26 27 TO AMEND SECTION 59-1-452, AS AMENDED, OF THE 1976 CODE, RELATING TO THE PUBLIC SCHOOL 28 EMPLOYEE COST SAVINGS PROGRAM, SECTION 59-6-12, AS AMENDED, RELATING TO THE EDUCATION 29 IMPROVEMENT ACT SELECT COMMITTEE, SECTION 59-6-30, AS AMENDED, RELATING TO THE ANNUAL 30 ASSESSMENT OF THE EDUCATION IMPROVEMENT ACT, SECTION 59-18-15, AS AMENDED, RELATING 31 TO THE REQUIREMENTS OF THE DEFINED MINIMUM PROGRAM AND OTHER PROGRAMS, AND 32 SECTION 59-141-10, AS AMENDED, RELATING TO NATIONAL EDUCATION GOALS, SO AS TO DELETE 33 REFERENCES TO THE BUSINESS-EDUCATION PARTNERSHIP FOR EXCELLENCE IN EDUCATION AND ITS 34 BUSINESS-EDUCATION SUBCOMMITTEE; AND TO REPEAL SECTIONS 59-6-15, 59-6-16, 59-6-17, AND 59-6-20, 35 RELATING TO THE BUSINESS-EDUCATION PARTNERSHIP, THE BUSINESS-EDUCATION SUBCOMMITTEE, 36 AND SPECIFIC DUTIES AND POWERS THEREOF. 37 38 A. The second paragraph of Section 59-1-452 of the 1976 Code, as last amended by Act 194 of 1989, is further amended 39 to read: 40 41 "Committee members shall serve three-year terms except that of those initially appointed, four shall serve initial terms 42 of one year, four shall serve initial terms of two years, and four shall serve initial terms of three years, these initial terms PART II PAGE 517 1 to be determined by lot at the first meeting of the committee. Members of the committee must not serve on the Education 2 Improvement Act Select Committee, the Business-Education Partnership for Excellence in Education, or the Business 3 Education Subcommittee while serving on the committee created under this section. Committee members must attend at least 4 eighty percent of the meetings of the committee in each fiscal year or be replaced. Vacancies must be filled in the manner 5 of original appointment." 6 7 B. Section 59-6-12 of the 1976 Code, as last amended by Act 171 of 1991, is further amended to read: 8 9 "Section 59-6-12. (A) To carry out its responsibilities pursuant to Sections 59-6-10 and 59-1-453, the Select 10 Committee may initiate the evaluation of programs and policies including, but not limited to, those programs required to 11 implement the Education Finance Act, the Education Improvement Act, and Target 2000 Act through contracts with 12 independent entities. Reports on evaluations and assessments must be prepared for the Business-Education Subcommittee 13 and the General Assembly. The staff of the Select Committee shall solicit the assistance of the staffs of the House Education 14 and Public Works Committee, the Senate Education Committee, the Business-Education Subcommittee, the Governor's 15 Office, and the Department of Education. 16 (B) The State Superintendent of Education also shall undertake the evaluations required by the State Board of Education 17 in carrying out its responsibilities pursuant to Section 59-6-30 and other evaluations considered necessary by the 18 Superintendent through contracts with independent entities. 19 (C) Before initiating evaluations, the Select Committee and the Superintendent of Education shall request the program 20 specified outcomes from the State Board of Education. The State Superintendent and State Board of Education shall work 21 with the Select Committee to ensure the collection of all data necessary to properly conduct required assessments. School 22 districts shall cooperate fully by reporting the necessary data in the required format. Assessments and evaluations must be 23 conducted by independent contractors in accordance with the Consolidated Procurement Code. Contractors selected to 24 perform the assessments must have specific demonstrable expertise in educational assessment. The General Assembly shall 25 provide necessary funding annually for assessments and evaluations. 26 After receiving the program specified outcomes from the State Board of Education, the Select Committee or 27 Superintendent, before entering into any contracts to implement the plan, shall receive input from the Joint Business- 28 Education Subcommittee, the Select Committee, and the Governor. 29 The Select Committee shall approve all Requests for Proposals for studies undertaken by the Select Committee or by 30 the State Superintendent of Education. Within ten days upon receipt of the final report on an assessment or evaluation, it 31 must be provided to the Select Committee, the State Superintendent of Education, the State Board of Education, the 32 Governor, the Business-Education Subcommittee, the Senate Education Committee, and the House Education and Public 33 Works Committee." 34 35 C. Section 59-6-30 of the 1976 Code, as last amended by Act 194 of 1989, is further amended to read: 36 37 "Section 59-6-30. The State Board of Education shall provide an assessment of the South Carolina Education 38 Improvement Act of 1984 for consideration by the Business-Education Subcommittee and the General Assembly. A special 39 assessment shall be provided on March 1, 1985. Commencing in 1985, an annual assessment must be provided by December 40 first of each year and an appropriate amount of funding must be provided for this purpose. The Business-Education 41 Subcommittee shall provide a report on the assessment to the Business-Education Partnership, and the partnership shall submit 42 its recommendations to the General Assembly prior to February first. The staff of the Business-Education Subcommittee PART II PAGE 518 1 shall serve as the primary staff to the Business-Education Partnership and may solicit the assistance of the staffs of the House 2 Education and Public Works Committee, the Senate Education Committee, the Select Committee, the Public Accountability 3 Division, and the Governor's Office." 4 5 D. The second paragraph of Section 59-18-15 of the 1976 Code, as last amended by Act 194 of 1989, is further amended 6 to read: 7 8 "Schools receiving flexibility status are released from those regulations and statutory provisions referred to above 9 including, but not limited to, regulations and statutory provisions on class scheduling, class structure, and staffing. The State 10 Board of Education in consultation with the Select Committee and the Business-Education Subcommittee must promulgate 11 regulations and develop guidelines for providing this flexibility by December 1, 1989." 12 13 E. Section 59-141-10(B) and (C) of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read: 14 15 "(B) In formulating this plan the Department of Education shall coordinate its efforts with the South Carolina 16 Business-Education Partnership for Excellence in Education, to include its planning committee and outreach committee and 17 also the accountability committee of the Business Education Subcommittee. 18 Input must be solicited from the State Board of Education, South Carolina Education Goals Panel, EIA Select 19 Committee, Human Services Coordinating Council, South Carolina Business Center for Education, Chamber of Commerce, 20 South Carolina School Boards Association, South Carolina Association of School Administrators, South Carolina Parent 21 Teacher Association, South Carolina School Improvement Councils, Palmetto Teachers Association, South Carolina Education 22 Association, South Carolina Teacher Forum, American Association of Retired Persons, Business and Community 23 Representatives, Regional Goals Coordinating Councils and America 2000 communities. 24 This plan shall reflect a systemic approach that applies the principles of Total Quality Management and strategies of 25 effectiveness which reflect state accountability, local school district accountability, and community accountability. The plan 26 must relate to learning and school effectiveness standards developed by the State Board of Education through the State 27 Department of Education, to restructuring efforts that relate to local school districts, and to partnerships that relate to local 28 communities. Examples of these standards and efforts include: 29 (1) curriculum frameworks in each subject area; 30 (2) accreditation and accountability of schools; 31 (3) assessment of student learning; 32 (4) empowerment of the existing and future teaching force; 33 (5) instructional materials and technology; 34 (6) extensive use of the Leadership Academy; 35 (7) seed money for restructuring initiatives; 36 (8) staff development through the use of `lighthouse schools'; 37 (9) understanding of educational renewal and restructuring; 38 (10) school to work transitions; 39 (11) motivational programs for students and parents; 40 (12) increased collaboration between K-12 and higher education; 41 (13) collaborative-decentralized governance; 42 (14) case management and collocation services to emotionally and physically handicapped children and their families; PART II PAGE 519 1 (15) targeted education and health services to special needs groups; 2 (16) educational and health counseling services with local and community input on the negative impact of teen 3 pregnancy and the positive impact of delaying parenthood; 4 (17) ontracting between public schools and health related entities; 5 (18) maximizing federal and other funds to ensure that children are provided health screenings; and 6 (19) providing extended care services to working parents. 7 (C) (1) By August 1, 1993, a draft of the format to be used in developing the plan must be presented for review and 8 approval to the State Board of Education, the House Ways and Means Committee, the House Education and Public Works 9 Committee, the Senate Finance Committee, and Senate Education Committee. 10 (2) By September 1, 1994, the Department of Education shall submit for review and approval to the EIA Select 11 Committee and the Business Education Subcommittee the proposed time lines, funding requirements, and necessary steps 12 to implement the plan for each of the next five years from 1995 to 2000. 13 (3) During the months of November and December, 1994, the State Department of Education and the South Carolina 14 Business-Education Partnership Committee shall meet with and request comment from, but not limited to, the major education 15 associations, the Congress of Parents and Teachers, the state and local Chambers of Commerce, the State Board of 16 Education, Regional Goals Coordinating Councils, Human Service Coordinating Council, Regional EIA Councils, the 17 Principal's Council, Council of College Presidents, South Carolina Council of Educational Collaboration, the Commission 18 on Higher Education, South Carolina Teachers' Forum, EIA Select Committee, House Education and Public Works 19 Committee, Senate Education Committee, House Ways and Means Subcommittee on Long Term Policy and Planning, and 20 Senate Finance Subcommittee on Education on the proposed time lines, funding requirements and necessary specific steps 21 to implement the plan for each of the next five years. 22 (4) By January 1, 1995, the State Department of Education shall submit to the State Board of Education, the 23 Governor, and the General Assembly the revised plan which establishes accountability measures at the state level, 24 accountability measures at local district level and supporting interagency partnerships at the community level, funding 25 requirements, and appropriate time lines." 26 27 F. Sections 59-6-15, 59-6-16, 59-6-17, and 59-6-20 of the 1976 Code are repealed. 28 29 30 SECTION 24 31 32 TO ENACT THE "SOUTH CAROLINA CHILDREN'S EDUCATION ENDOWMENT ACT OF 1996" INCLUDING 33 PROVISIONS TO AMEND CHAPTER 143, TITLE 59 OF THE 1976 CODE, RELATING TO THE EDUCATIONAL 34 ASSISTANCE ENDOWMENT FUND, SO AS TO CHANGE THE NAME OF THE FUND TO THE CHILDREN'S 35 EDUCATION ENDOWMENT FUND, DELETE THE AUTHORITY TO ACCUMULATE MONIES IN THE FUND, 36 FURTHER PROVIDE FOR THE MANNER IN WHICH SUCH FUNDS SHALL BE USED, AND TO REQUIRE 37 THAT BEGINNING WITH THE 1996-97 FISCAL YEAR, MONIES IN THE FUND MUST BE DISTRIBUTED 38 QUARTERLY; TO AMEND TITLE 59, RELATING TO EDUCATION, BY ADDING CHAPTER 144 SO AS TO 39 PROVIDE FOR A PUBLIC SCHOOL FACILITIES ASSISTANCE PROGRAM WHICH ESTABLISHES THE 40 MANNER IN WHICH FUNDS AVAILABLE FROM THE CHILDREN'S EDUCATION ENDOWMENT FUND 41 SHALL BE USED TO CONSTRUCT AND RENOVATE PUBLIC SCHOOL FACILITIES AND FOR OTHER 42 EDUCATIONAL PURPOSES; AND TO AMEND ACT 145 OF 1995, RELATING TO THE 1995-96 GENERAL PART II PAGE 520 1 APPROPRIATIONS ACT, SO AS TO REVISE THE MANNER IN WHICH FUNDS OF THE CHILDREN'S 2 EDUCATION ENDOWMENT FUND ARE DISTRIBUTED FOR FISCAL YEAR 1995-96. 3 4 A. This section is known and may be cited as the "South Carolina Children's Education Endowment Act of 1996." 5 6 B. Chapter 143 of Title 59 of the 1976 Code, as added by Section 82, Part II of Act 145 of 1995, is amended to read: 7 8 "CHAPTER 143 9 10 Educational Assistance 11 Children's Education Endowment Fund 12 13 Section 59-143-10. There is hereby established the South Carolina Educational Assistance Children's Education 14 Endowment Fund. The revenue received pursuant to Section 48-48-140(C) must be deposited by the State Treasurer in a 15 fund separate and distinct from the state general fund entitled the `Educational Assistance Children's Education Endowment 16 Fund'. All interest or income earned by the fund shall be retained in the fund and used for its stated purposes which are 17 to provide funding for Public School Facilities Assistance and Higher Education Scholarship Grants. It is the intent of the 18 General Assembly that in creating this endowment that its funds be managed so as to establish and fund these programs 19 permanently. Upon receipt of monies transferred to the Endowment Fund by the State Treasurer, thirty percent of these 20 monies must be allocated to Higher Education Scholarship Grants and seventy percent must be allocated to Public School 21 Facility Assistance. Earnings on each allocation shall accumulate for the benefit of that particular program. For purposes 22 of the allocation to Higher Education Scholarship Grants, the The Budget and Control Board shall distribute monies from 23 each allocation quarterly beginning with Fiscal Year 1996-97 based on actual receipts and earnings for the prior quarter of 24 that allocation. release a minimum of ten million dollars annually beginning with the 1996-97 fiscal year. 25 26 Section 59-143-20. The board in its discretion may accumulate the principal and income of each program's funds, may 27 disburse a portion or all of each program's annual or accumulated principal or income, and may for purposes of Public 28 School Facilities Assistance cause to be issued revenue bonds as provided by law the debt service on which may be paid from 29 that program's funds. All principal and income of each program's funds may be carried forward from fiscal year to fiscal 30 year and used for that program's purposes." 31 32 C. Title 59 of the 1976 Code is amended by adding: 33 34 "CHAPTER 144 35 36 Public School Facilities Assistance 37 38 Article 1 39 40 General Provisions 41 42 Section 59-144-10. Funds available from the Children's Education Endowment Fund, as established in Chapter 143 of PART II PAGE 521 1 this title, must be used for public school facilities assistance as provided in this chapter. 2 3 Section 59-144-20. For the benefit of the people of the State and the increase of their commerce, welfare, and 4 prosperity, it is essential that the school districts of this State be assisted in obtaining adequate school facilities to assist youth 5 in achieving the required levels of learning. It is the purpose of this chapter to provide a measure of assistance to the school 6 districts of this State in securing the facilities and structures which are needed to accomplish the goals and purposes of public 7 education, all to the public benefit and good, to the extent and manner provided in this chapter. 8 9 Section 59-144-30. Funds made available through this chapter must be used for permanent school instructional facilities 10 and fixed equipment including the costs for construction, improvement, enlargement, or renovation of public school facilities. 11 The district may use its allocation for payment of debt service provided that the debt service relates to school facilities as 12 defined herein. As used in this chapter, `school facilities' only includes facilities necessary for instructional and related 13 purposes including, but not limited to, classrooms, libraries, media centers, laboratories, cafeterias, physical education 14 spaces, related interior and exterior facilities, and the conduit, wiring, and powering of hardware installations for classroom 15 computers or for area network systems. `School facilities' does not include unimproved real property, centralized district 16 administration facilities, or other facilities, including those normally identified with interscholastic sports activities. 17 18 Article 2 19 20 School Facilities Assistance Allocation 21 22 Section 59-144-100. (A) Funds made available under this chapter must be allocated annually to the school districts 23 as follows: 24 (1) sixty percent of the funds allocated annually to the several school districts for facilities' needs must be 25 allocated on a per pupil basis using the weighted pupil units of each district for the preceding year; 26 (2) forty percent must be allocated according to the preceding year's Education Finance Act (EFA) formula; 27 (3) a district's annual allotment must be the sum of the two amounts calculated as provided in this subsection. 28 Funds from a district's allotment shall be made available as needed once approval is received from the State Board of 29 Education pursuant to Chapter 23 of this title. 30 (B) The Department of Juvenile Justice, the Wil Lou Gray Opportunity School, the John de la Howe School, and the 31 South Carolina School for the Deaf and the Blind also shall be annually allocated funds from the Children's Education 32 Endowment Fund for facilities needs on a per pupil basis using weighted pupil units for one hundred percent of their 33 allocations. For purposes of these allocations only, all pupils of these schools are considered K-12 pupils. 34 (C) Notwithstanding the provisions of Section 59-143-10 and this chapter, from the funds made available under this 35 chapter from the public school facilities assistance allocation: 36 (1) Three million dollars annually for two consecutive years beginning with Fiscal Year 1996-97 must be allocated 37 to the Governor's School for the Arts; 38 (2) Five million dollars annually for three consecutive years beginning with Fiscal Year 1996-97 must be allocated 39 to the Governor's School for Math and Science; and 40 (3) Three million dollars annually for four consecutive years beginning with Fiscal Year 1996-97 must be 41 allocated to the several multi-district career centers of this State on a per pupil basis. 42 PART II PAGE 522 1 Section 59-144-110. The State Board of Education shall establish and appoint a twenty-member advisory committee 2 to assist in developing guidelines, regulations, and standards pursuant to this chapter. The State Superintendent of Education 3 shall recommend members for the advisory committee which shall include individuals with backgrounds in the following 4 areas: 5 (a) capital improvements financing; 6 (b) building construction; 7 (c) school building design; 8 (d) district finances; 9 (e) district administration; 10 (f) local boards of trustees; 11 (g) classroom instruction; and 12 (h) educational facilities requirements at the primary, elementary, middle, and high school levels. 13 Members of the committee shall receive mileage, subsistence, and per diem as provided by law for members of state 14 boards, committees, and commissions to be paid from public school facilities assistance funds. The members of the advisory 15 committee shall serve at the pleasure of the State Board of Education. 16 17 Section 59-144-120. To qualify for funds under this chapter, each school district shall meet the conditions and 18 qualifications provided for in this chapter. Funds must be withheld from districts when inappropriate use of funds is 19 documented. 20 21 Section 59-144-130. By December 1, 1998, the State Board of Education shall recommend to the General Assembly 22 changes to be made to this chapter regarding program objectives, appropriate funding levels, and funding allotment 23 formulas." 24 25 D. Paragraph 72.71 of Part IB of Act 145 of 1995 is amended to read: 26 27 "72.71. (GP: Educational Assistance Children's Education Endowment Fund) Notwithstanding provisions contained 28 within this act, for this fiscal year only, the revenue credited to the Educational Assistance Children's Education Endowment 29 Fund pursuant to Section 48-47-175(C) 48-48-140(C) shall be used as follows: $7,000,000 for University of Charleston -- 30 Acquisition of Adjoining Property, $4,000,000 for Greenville Higher Education Consortium, $5,400,000 for Archives and 31 History -- History Center, $600,000 for the School for the Deaf and the Blind -- Maintenance and Equipment, and $185,000 32 for Wil Lou Gray Opportunity School -- Building Maintenance with the remaining funds to be distributed on a seventy 33 percent-thirty percent basis to Public School Facilities Assistance and Higher Educational Scholarship Grants, respectively; 34 however no less than $39,400,000 shall go to Scholarship Grants." 35 36 37 SECTION 25 38 39 TO AMEND SECTION 14-1-200 OF THE 1976 CODE, RELATING TO THE SALARIES OF SUPREME COURT 40 JUSTICES, JUDGES OF THE COURT OF APPEALS, CIRCUIT COURT, AND FAMILY COURT, AND CIRCUIT 41 SOLICITORS, SO AS TO PROVIDE THAT CIRCUIT SOLICITORS SHALL RECEIVE A SALARY NOT LESS 42 THAN THE SALARY OF JUDGES OF THE COURT OF APPEALS AND CIRCUIT COURT JUDGES. PART II PAGE 523 1 A. Section 14-1-200 of the 1976 Code is amended to read: 2 3 "Section 14-1-200. The General Assembly shall establish the salary of the Chief Justice and Associate Justices of the 4 Supreme Court in the annual general appropriation act and shall fix the salaries for the court of appeals, circuit court, family 5 court, and circuit solicitors according to the following schedule: 6 (1) The chief judge of the court of appeals shall receive a salary in an amount not to exceed ninety-nine percent of the 7 salary fixed for Associate Justices of the Supreme Court; 8 (2) Judges of the court of appeals and circuit court judges shall receive a salary in an amount not to exceed ninety-five 9 percent of the salary fixed for Associate Justices of the Supreme Court; 10 (3) Circuit solicitors shall receive a salary in an amount not less than the salary of judges of the court of appeals and 11 circuit court judges; 12 (4) Judges of the family court and circuit solicitors shall receive a salary in an amount not to exceed ninety percent 13 of the salary fixed for judges of the court of appeals and circuit court. 14 15 B. This section takes effect July 1, 1996. 16 17 18 SECTION 26 19 20 TO AMEND SECTION 16-3-26, AS AMENDED, OF THE 1976 CODE, RELATING TO THE NOTICE THE 21 SOLICITOR MUST GIVE TO A DEFENSE ATTORNEY WHEN HE SEEKS THE DEATH PENALTY, THE 22 APPOINTMENT OF ATTORNEYS, AND THE PROVISION OF INVESTIGATIVE, EXPERT, OR OTHER 23 SERVICES TO INDIGENT PERSONS FACING THE DEATH PENALTY, SO AS TO REVISE THE PROVISIONS 24 RELATING TO THE PAYMENT OF FEES AND EXPENSES ASSOCIATED WITH THE DEFENSE OF CERTAIN 25 INDIGENTS, AND THE QUALIFICATIONS AND APPOINTMENT OF ATTORNEYS HANDLING DEATH 26 PENALTY CASES; TO AMEND SECTION 17-3-30, AS AMENDED, RELATING TO INDIGENTS WHO HAVE 27 BEEN APPOINTED LEGAL COUNSEL, CERTAIN FEES THESE PERSONS ARE REQUIRED TO PAY FOR 28 LEGAL SERVICES, AND FUNDS SET ASIDE FOR THE DEFENSE OF INDIGENT, SO AS TO REVISE THE 29 PROCESS OF COLLECTING FEES FROM INDIGENTS WHO HAVE BEEN APPOINTED LEGAL COUNSEL; 30 TO AMEND SECTION 17-3-330, AS AMENDED, RELATING TO DUTIES OF THE OFFICE OF INDIGENT 31 DEFENSE, SO AS TO PROVIDE FOR THE DISTRIBUTION OF UNEXPENDED FUNDS AND THE 32 QUALIFICATIONS A PERSON SHALL POSSESS TO BE APPOINTED BY THE COURT AND COMPENSATED 33 BY THE DEATH PENALTY TRIAL FUND. 34 35 A. Section 16-3-26 of the 1976 Code, as last amended by Section 45D, Part II, Act 164 of 1993, and Section 14.1, Part 36 IB, Act 145 of 1995, is further amended to read: 37 38 "Section 16-3-26. (A) [From and after July 1, 1996, this section reads as follows:] Whenever the solicitor seeks the 39 death penalty he shall notify the defense attorney of his intention to seek such penalty at least thirty days prior to the trial 40 of the case. At the request of the defense attorney, the defense attorney shall be excused from all other trial duties ten days 41 prior to the term of court in which the trial is to be held. 42 (B) Whenever any person is charged with murder and the death penalty is sought, the court, upon determining that PART II PAGE 524 1 such person is unable financially to retain adequate legal counsel, shall appoint two attorneys to defend such person in the 2 trial of the action. One of the attorneys so appointed shall have at least five years' experience as a licensed attorney and at 3 least three years' experience in the actual trial of felony cases, and only one of the attorneys so appointed shall be the Public 4 Defender or a member of his staff. In all cases where no conflict exists, the public defender or member of his staff shall 5 be appointed if qualified. If a conflict exists, the court shall then turn first to the contract public defender attorneys, if 6 qualified, before turning to the Office of Indigent Defense. 7 Notwithstanding any other provision of law, the court shall order payment of all fees and costs from funds available 8 to the Office of Indigent Defense for the defense of indigent. Any attorney appointed shall be compensated at a rate not to 9 exceed fifty dollars an hour for time expended out of court and seventy-five dollars an hour for time expended in court. 10 Compensation shall not exceed twenty-five thousand dollars and shall be paid from funds available to the Office of Indigent 11 Defense for the defense of indigent represented by court-appointed, private counsel. 12 (C) Upon a finding in ex parte proceedings that investigative, expert, or other services are reasonably necessary for 13 the representation of the defendant whether in connection with issues relating to guilt or sentence, the court shall authorize 14 the defendant's attorneys to obtain such services on behalf of the defendant and shall order the payment, from funds available 15 to the Office of Indigent Defense, of fees and expenses not to exceed twenty-five hundred dollars as the court shall deem 16 appropriate. Payment of such fees and expenses may be ordered in cases where the defendant is an indigent represented by 17 either court-appointed, private counsel or the public defender. 18 (D) Payment in excess of the hourly rates and limit in subsection (B) or (C) is authorized only if the court certifies, 19 in a written order with specific findings of fact, that payment in excess of the rates is necessary to provide compensation 20 adequate to ensure effective assistance of counsel and payment in excess of the limit is appropriate because the services 21 provided were reasonably and necessarily incurred. Upon a finding that timely procurement of such services cannot await 22 prior authorization, the court may authorize the provision of and payment for such services nunc pro tunc. 23 (E) After completion of the trial, the court shall conduct a hearing to review and validate the fees, costs, and other 24 expenditures on behalf of the defendant. 25 (F) The Supreme Court shall promulgate guidelines on the expertise and qualifications necessary for attorneys to be 26 certified as competent to handle death penalty cases. 27 (G) The Office of Indigent Defense shall maintain a list of death penalty qualified attorneys who have applied for and 28 received certification by the Supreme Court as provided for herein. In the event the court appointed counsel notifies the 29 chief administrative judge in writing that he or she does not wish to provide representation in a death penalty case, the chief 30 administrative judge shall advise the Office of Indigent Defense which shall forward a name or names to the chief 31 administrative judge for consideration. The appointment power is vested in the chief administrative judge. The Office of 32 Indigent Defense shall establish guidelines as are necessary to ensure that attorneys' names are presented to the judges on 33 a fair and equitable basis taking into account geography and previous assignments from the list. Efforts shall be made to 34 present an attorney from the area or region where the action is initiated. 35 (A) Whenever the solicitor seeks the death penalty he shall notify the defense attorney of his intention to seek such 36 penalty at least thirty days prior to the trial of the case. At the request of the defense attorney, the defense attorney shall 37 be excused from all other trial duties ten days prior to the term of court in which the trial is to be held. 38 (B) Whenever any person is charged with murder and the death penalty is sought, the court, upon determining that 39 such person is unable financially to retain adequate legal counsel, shall appoint two attorneys to defend such person in the 40 trial of the action. One of the attorneys so appointed shall have at least five years' experience as a licensed attorney and at 41 least three years' experience in the actual trial of felony cases, and only one of the attorneys so appointed shall be the Public 42 Defender or a member of his staff. In all cases where no conflict exists, the public defender or member of his staff shall PART II PAGE 525 1 be appointed if qualified. If a conflict exists, the court shall then turn first to the contract public defender attorneys, if 2 qualified, before turning to the Office of Indigent Defense. 3 Notwithstanding any other provision of law, the court shall order payment of all fees and costs from funds available 4 to the Office of Indigent Defense for the defense of indigent. Any attorney appointed shall be compensated at a rate not to 5 exceed fifty dollars per hour for time expended out of court and seventy-five dollars per hour for time expended in court. 6 Compensation shall not exceed twenty-five thousand dollars and shall be paid from funds available to the Office of Indigent 7 Defense for the defense of indigent represented by court-appointed, private counsel. 8 (C)(1) Upon a finding in ex parte proceedings that investigative, expert, or other services are reasonably necessary for 9 the representation of the defendant whether in connection with issues relating to guilt or sentence, the court shall authorize 10 the defendant's attorneys to obtain such services on behalf of the defendant and shall order the payment, from funds available 11 to the Office of Indigent Defense, of fees and expenses not to exceed twenty thousand dollars as the court shall deem 12 appropriate. Payment of such fees and expenses may be ordered in cases where the defendant is an indigent represented 13 by either court-appointed, private counsel or the public defender. 14 (2) Court-appointed counsel seeking payment for fees and expenses shall request these payments from the Office 15 of Indigent Defense within thirty days after the completion of the case. For the purposes of this statute, exhaustion of the 16 funds shall occur if the funds administered by the Office of Indigent Defense and reserved for death penalty fees and expenses 17 have been reduced to zero. If either the Death Penalty Trial Fund or the Conflict Fund has been exhausted in a month and 18 the other fund contains money not scheduled to be disbursed in that month, then the Indigent Defense Commission must 19 transfer a sufficient amount from the fund with the positive fund balance to the fund with no balance and pay the obligation 20 to the extent possible. 21 (D) Payment in excess of the hourly rates and limit in subsection (B) or (C) is authorized only if the court certifies, 22 in a written order with specific findings of fact, that payment in excess of the rates is necessary to provide compensation 23 adequate to ensure effective assistance of counsel and payment in excess of the limit is appropriate because the services 24 provided were reasonably and necessarily incurred. Upon a finding that timely procurement of such services cannot await 25 prior authorization, the court may authorize the provision of and payment for such services nunc pro tunc. 26 (E) After completion of the trial, the court shall conduct a hearing to review and validate the fees, costs, and other 27 expenditures on behalf of the defendant. 28 (F) The Supreme Court shall promulgate guidelines on the expertise and qualifications necessary for attorneys to be 29 certified as competent to handle death penalty cases. 30 (G) The Office of Indigent Defense shall maintain a list of death penalty qualified attorneys who have applied for and 31 received certification by the Supreme Court as provided for herein. In the event the court appointed counsel notifies the chief 32 administrative judge in writing that he or she does not wish to provide representation in a death penalty case the chief 33 administrative judge shall advise the Office of Indigent Defense which shall forward a name or names to the chief 34 administrative judge for consideration. The appointment power is vested in the chief administrative judge. The Office of 35 Indigent Defense shall establish guidelines as are necessary to ensure that attorneys' names are presented to the judges on 36 a fair and equitable basis taking into account geography and previous assignments from the list. Efforts shall be made to 37 present an attorney from the area or region where the action is initiated. 38 (H) The payment schedule set forth herein, as amended by Act 164 of 1993, shall apply to any case for which trial 39 occurs on or after July 1, 1993. 40 (I) Notwithstanding another provision of law, only attorneys who are licensed to practice in this State and residents 41 of this State may be appointed by the Court and compensated with funds appropriated to the Death Penalty Trial Fund in 42 the Office of Indigent Defense. This proviso shall not pertain to any case in which council has been appointed on the PART II PAGE 526 1 effective date of this Act. 2 (J) The Judicial Department biennially shall develop and make available to the public a list of standard fees and 3 expenses associated with the defense of an indigent person in a death penalty case." 4 5 B. Section 17-3-30 of the 1976 Code, as last amended by Section 45E, Part II, Act 164 of 1993, and Section 14.1, Part 6 IB, Act 145 of 1995, is further amended to read: 7 8 "Section 17-3-30. (A) A person to whom counsel has been provided shall execute an affidavit that he is financially 9 unable to employ counsel and that affidavit shall set forth all his assets. If it appears that the person has some assets but they 10 are insufficient to employ private counsel, the court, in its discretion, may order the person to pay these assets to the 11 defender corporation of the county or counties wherein he is being represented or, if a defender corporation does not exist 12 therein, to the judicial department of the State of South Carolina. 13 (B) A twenty-five dollar application fee for public defender services must be collected from every person who executes 14 an affidavit that he is financially unable to employ counsel. The person may apply to the clerk of court or other appropriate 15 official for a waiver or reduction in the application fee. If the clerk or other appropriate official determines that the person 16 is unable to pay the application fee, the fee may be waived or reduced. The clerk of court or other appropriate official shall 17 collect the application fee imposed by this section and remit the proceeds to the state fund on a monthly basis. The monies 18 must be deposited in an interest-bearing account separate from the general fund and used only to provide for indigent defense 19 services. The monies shall be administered by the Office of Indigent Defense. The monies collected pursuant to this 20 provision shall be used for the payment of court-appointed private counsel to represent indigent defendants and the fees and 21 expenses court-ordered in the defense of all indigent whether they are represented by the public defender corporation of the 22 county or court-appointed private counsel. However, each county public defender corporation shall receive an annual 23 appropriation from this fund. 24 (C) Sufficient funds shall be set aside from allocations provided for the defense of indigent to provide for adequate 25 screening of applications for indigent assistance to ensure the applicant is qualified. 26 (A) A person to whom counsel has been provided shall execute an affidavit that he is financially unable to employ 27 counsel and that affidavit shall set forth all his assets. If it appears that the person has some assets but they are insufficient 28 to employ private counsel, the court, in its discretion, may order the person to pay these assets to the defender corporation 29 of the county or counties wherein he is being represented or, if a defender corporation does not exist therein, to the Office 30 of Indigent Defense of the State of South Carolina. 31 (B) A twenty-five dollar application fee for public defender services must be collected from every person who executes 32 an affidavit that he is financially unable to employ counsel. The person may apply to the clerk of court or other appropriate 33 official for a waiver or reduction in the application fee. If the clerk or other appropriate official determines that the person 34 is unable to pay the application fee, the fee may be waived or reduced. The clerk of court or other appropriate official shall 35 collect the application fee imposed by this section and remit the proceeds to the state fund on a monthly basis. The monies 36 must be deposited in an interest-bearing account separate from the general fund and used only to provide for indigent defense 37 services. The monies shall be administered by the Office of Indigent Defense. 38 (C) Sufficient funds shall be set aside from allocations provided for the defense of indigent to provide for adequate 39 screening of applications for indigent assistance to ensure the applicant is qualified." 40 41 C. Section 17-3-330 of the 1976 Code, as last amended by Section 45C, Part II, Act 164 of 1993, and Section 14.1, Part 42 IB, Act 145 of 1995, is further amended to read: PART II PAGE 527 1 "Section 17-3-330. (A) The Office of Indigent Defense shall: 2 (1) serve as the entity which distributes all funds appropriated by the General Assembly for the defense of indigent, 3 including funds allocated to counties pursuant to formula, funds for the defense of capital cases, and other funds appropriated 4 for these purposes; 5 (2) perform those functions provided under Section 16-3-26(G); 6 (3) serve as a resource for the compilation of accurate statistical data covering the indigent defense system in this 7 State; 8 (4) implement other duties the commission may direct; and 9 (5) report annually to the General Assembly on the indigent defense system. 10 (A) The Office of Indigent Defense shall: 11 (1) serve as the entity which distributes all funds appropriated by the General Assembly for the defense of indigent, 12 including funds allocated to counties' public defender offices pursuant to formula, funds for the defense of capital cases, 13 funds for attorney fees and expenses in non-capital cases, and other funds appropriated for these purposes; 14 (2) perform those functions provided under Section 16-3-26(G); 15 (3) serve as a resource for the compilation of accurate statistical data covering the indigent defense system in this 16 State; 17 (4) implement other duties the commission may direct; and 18 (5) report annually to the General Assembly on the indigent defense system. 19 (B) On or about June 30, 1994 and every year thereafter on that date, if the Office of Indigent Defense determines, 20 after taking into consideration all outstanding obligations against the fund for payment of attorney fees and expenses in non- 21 capital cases, that unexpended funds remain, these funds shall be rolled over into the fund for payment of attorney fees and 22 expenses in capital cases; provided however this shall occur only in the event the funds in the capital fund have been 23 exhausted at that time. This fund shall at no time exceed $2,750,000. 24 (C) Notwithstanding another provision of law, only attorneys who are licensed to practice in this State and residents 25 of this State may be appointed by the court and compensated with funds appropriated to the Death Penalty Trial Fund in the 26 Office of Indigent Defense." 27 28 D. This section takes effect July 1, 1996. 29 30 31 SECTION 27 32 33 TO PROVIDE THAT THE DUTIES, FUNCTIONS, AND RESPONSIBILITIES OF THE DIVISION OF SECURITIES 34 OF THE OFFICE OF THE SECRETARY OF STATE ARE DEVOLVED UPON THE ATTORNEY GENERAL'S 35 OFFICE ON JULY 1, 1996, TO PROVIDE THAT THE ATTORNEY GENERAL SHALL ADMINISTER THE 36 SOUTH CAROLINA UNIFORM SECURITIES ACT AND SHALL SERVE EX OFFICIO AS THE SECURITIES 37 COMMISSIONER, TO PROVIDE THAT ALL PERSONNEL, APPROPRIATIONS, AND FULL-TIME 38 EQUIVALENT POSITIONS OF THE DIVISION OF SECURITIES ALSO SHALL BE TRANSFERRED TO THE 39 ATTORNEY GENERAL'S OFFICE ON JULY 1, 1996; TO AMEND THE 1976 CODE BY ADDING SECTION 40 35-1-220 SO AS TO ALLOW THE ATTORNEY GENERAL TO RETAIN A PORTION OF FEES AND PROCEEDS 41 IN SETTLEMENT OF VIOLATIONS TO OFFSET COSTS OF ADMINISTERING THE UNIFORM SECURITIES 42 ACT; AND TO AMEND SECTIONS 35-1-20 AND 35-1-30 OF THE 1976 CODE, RELATING TO THE UNIFORM PART II PAGE 528 1 SECURITIES ACT, SO AS TO REFLECT THE ATTORNEY GENERAL AS BEING THE SECURITIES 2 COMMISSIONER WHO SHALL ADMINISTER THE ACT. 3 4 A. The duties, functions, and responsibilities of the Division of Securities of the office of the Secretary of State are hereby 5 devolved upon the Attorney General's office on July 1, 1996. All personnel, appropriations, and full-time equivalent 6 positions of the Division of Securities also shall be transferred to the Attorney General's office on July 1, 1996. 7 8 B. The Attorney General shall administer the South Carolina Uniform Securities Act as contained in Chapter 1 of Title 35 9 of the 1976 Code and shall serve ex officio as the Securities Commissioner. 10 11 C. Article 1, Chapter 1, Title 35 of the 1976 Code is amended by adding: 12 13 "Section 35-1-220. (A) Fee revenues collected pursuant to this chapter in excess of such revenues credited to the 14 general fund of the State in Fiscal Year 1995-96 may be retained by the Attorney General and used for the operations of the 15 Securities Division. 16 (B) The Attorney General may retain the first two hundred fifty thousand dollars received by the Division of Securities 17 in a fiscal year in settlement of litigation enforcement action and reimbursements of expenses arising from violations under 18 this chapter to offset investigative, prosecutive, and administrative costs of enforcing this chapter." 19 20 D. Section 35-1-20(1) of the 1976 Code is amended to read: 21 22 "(1) `Securities Commissioner' means Secretary of State Attorney General, who shall be ex officio Securities 23 Commissioner." 24 25 E. Section 35-1-30 of the 1976 Code is amended to read: 26 27 "Section 35-1-30. This chapter shall be administered by the Secretary of State Attorney General, who shall be ex 28 officio the Securities Commissioner and who may employ such additional assistants at such salaries as may be authorized 29 by the General Assembly." 30 31 F. This section takes effect July 1, 1996. 32 33 34 SECTION 28 35 36 TO PROVIDE THAT THE DUTIES, FUNCTIONS, AND RESPONSIBILITIES OF THE DIVISION OF PUBLIC 37 CHARITIES OF THE OFFICE OF THE SECRETARY OF STATE ARE DEVOLVED UPON THE ATTORNEY 38 GENERAL'S OFFICE ON JULY 1, 1996; TO TRANSFER ALL PERSONNEL, APPROPRIATIONS, AND 39 FULL-TIME EQUIVALENT POSITIONS OF THE DIVISION OF PUBLIC CHARITIES TO THE ATTORNEY 40 GENERAL'S OFFICE ON JULY 1, 1996; TO PROVIDE THAT THE ATTORNEY GENERAL SHALL 41 ADMINISTER THE "SOUTH CAROLINA SOLICITATION OF CHARITABLE FUNDS ACT"; AND TO AMEND 42 SECTIONS 33-56-20, 33-56-30, 33-56-40, 33-56-50, 33-56-60, 33-56-70, 33-56-80, 33-56-90, 33-56-100, 33-56-110, PART II PAGE 529 1 33-56-120, 33-56-130, 33-56-140, 33-56-150, 33-56-160, AND 33-56-190 OF THE 1976 CODE, ALL RELATING TO 2 THE SOLICITATION OF CHARITABLE FUNDS, SO AS TO DELETE REFERENCES TO THE SECRETARY OF 3 STATE AND REFLECT THE ATTORNEY GENERAL AND HIS OFFICE AS THE OFFICIAL AND THE AGENCY 4 TO ADMINISTER THE PROVISIONS OF THE "SOUTH CAROLINA SOLICITATION OF CHARITABLE FUNDS 5 ACT" AND TO ALLOW THE ATTORNEY GENERAL TO RETAIN A PORTION OF ADMINISTRATIVE FINES 6 TO OFFSET THE EXPENSES OF ENFORCEMENT. 7 8 A. The duties, functions, and responsibilities of the Division of Public Charities of the office of the Secretary of State are 9 devolved upon the Attorney General's office on July 1, 1996. All personnel, appropriations, and full-time equivalent 10 positions of the Division of Public Charities also are transferred to the Attorney General's office on July 1, 1996. 11 12 B. The Attorney General shall administer the "South Carolina Solicitation of Charitable Funds Act" as contained in Chapter 13 56 of Title 33 of the 1976 Code. 14 15 C. Section 33-56-20 of the 1976 Code, as added by Act 461 of 1994, is amended by deleting: 16 17 "(5) `Secretary' means the Secretary of State." 18 19 D. Section 33-56-30 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 20 21 "Section 33-56-30. Except as otherwise provided in this chapter, every charitable organization which intends to solicit 22 contributions within this State or have contributions solicited on its behalf shall file a registration statement with the secretary 23 Attorney General on forms prescribed by the secretary Attorney General by July first of each year but in all cases prior to 24 solicitation. It is the duty of the chief executive officer or chief financial officer of each charitable organization to file the 25 statements required under this chapter. The statements must be sworn to and contain: 26 (1) the name of the organization; 27 (2) the purpose for which it was organized; 28 (3) the principal address of the organization and the address of any offices in this State. If the organization does not 29 maintain an office, the name and address of the person having custody of its financial records; 30 (4) the names and addresses of the chief executive officer and chief financial officer; 31 (5) the names and addresses of any chapters, branches, or affiliates in this State; 32 (6) the place and date the organization was legally established, the form of its organization, and a reference to any 33 determination of its tax exempt status under the Internal Revenue Code; 34 (7) whether the organization intends to use professional solicitors or hire individuals to solicit; 35 (8) whether it is certified as a tax exempt organization and is authorized by any other governmental authority in this 36 State to solicit contributions; 37 (9) whether it is or has ever been enjoined by any court from soliciting contributions; and 38 (10) the general purpose for which the contributions to be solicited shall be used. 39 The registration forms and other documents prescribed by the Secretary of State Attorney General must be signed by 40 the chief executive officer and chief financial officer of the charitable organization and certified as true. Every charitable 41 organization which submits a registration to the secretary Attorney General must pay an annual registration fee of fifty 42 dollars." PART II PAGE 530 1 E. Section 33-56-40 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 2 3 "Section 33-56-40. The Children's Trust Fund of South Carolina as established by Section 20-7-5010 is required to 4 register with the Secretary of State Attorney General but is not required to pay the annual registration fee provided for in 5 Section 33-56-30." 6 7 F. Section 33-56-50 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 8 9 "Section 33-56-50. The following are not required to file registration statements with the Secretary of State Attorney 10 General, provided none of its fund-raising activities are carried on by professional solicitors: 11 (1) an educational institution which solicits contributions only from its students and their families, alumni, faculty, 12 friends and other constituencies, trustees, corporations, foundations, and individuals who are interested in and supportive 13 of the programs of the institution; 14 (2) persons requesting contributions for the relief of an individual specified by name at the time of the solicitation when 15 all of the contributions collected without any deductions of any kind are turned over to the named beneficiary for his use, 16 provided that a person soliciting the contributions is not a named beneficiary; 17 (3) charitable organizations which do not intend to solicit nor receive contributions from the public in excess of five 18 thousand dollars during a calendar year or do not receive contributions from more than ten persons during a calendar year, 19 if all of their functions, including fund-raising activities, are carried on by persons who are unpaid for their services and if 20 no part of their assets or income inures to the benefit of or is paid to any officer or member. If the contributions raised from 21 the public, whether all of the contributions are or are not received by a charitable organization during any calendar year, 22 are in excess of five thousand dollars, within thirty days after the date the contributions exceed five thousand dollars, it must 23 register with and report to the department as required by this chapter; 24 (4) organizations which solicit exclusively to their members, including utility cooperatives; and 25 (5) any veteran's organization which has a congressional charter. 26 Any charitable organization claiming to be exempt from the registration provisions of this chapter and which will or 27 does solicit charitable contributions shall submit annually to the secretary Attorney General on forms to be prescribed by the 28 secretary Attorney General, the name, address, and purpose of the organization and a statement setting forth the reason for 29 the claim for exemption. If exempted, the secretary Attorney General or his appropriate division shall issue a letter of 30 exemption which may be exhibited to the public. No filing fee is required of an exempt organization. 31 32 G. Section 33-56-60 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 33 34 "Section 33-56-60. (A) Each charitable organization soliciting funds in this State and not exempt under Section 35 33-56-50, whether individually or collectively with other organizations, shall file a report of its financial activities, on forms 36 prescribed by the Secretary of State Attorney General, certified to be true by the chief executive officer and the chief 37 financial officer of it, in the office of the Secretary of State Attorney General. The report must cover the preceding fiscal 38 year and must be filed within two and one-half months of the close of the organization's fiscal year unless a written extension 39 has been granted by the secretary Attorney General. 40 The report must include: 41 (1) specific and itemized support and revenue statements disclosing direct public support from solicitation, indirect 42 public support, government grants, program service revenue, and any other revenue. The report must disclose the amount PART II PAGE 531 1 of direct public support received from direct mail solicitation, telephone solicitation, commercial co-venturers, door-to-door 2 solicitations, telethons, and all other itemized sources; 3 (2) specific and itemized expense statements disclosing program services, public information expenditures, 4 fund-raising costs, payments to affiliates, management costs, and salaries paid; and 5 (3) balance sheet disclosures containing total assets and liabilities. 6 (B) However, if a charitable organization is required to file Internal Revenue Service Form 990 with the Internal 7 Revenue Service, the organization may file such form with the secretary Attorney General in lieu of the report required under 8 subsection (A) of this section, provided that the form may exclude such information which the Internal Revenue Service 9 would not release pursuant to a Freedom of Information request. 10 (C) An organization failing to file the report required by this section may be enjoined from further solicitation of funds 11 in this State in an action brought by the Attorney General or secretary. An organization failing to file a timely report 12 required by this section may be assessed by the secretary Attorney General administrative fines not to exceed two thousand 13 dollars." 14 15 H. Section 33-56-70 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 16 17 "Section 33-56-70. Every contract or agreement between professional fund-raising counsel or professional solicitor and 18 a charitable organization must be in writing and filed with the Secretary of State Attorney General within ten days after the 19 contract is made. Every agreement or written statement of the nature of the arrangement to prevail in the absence of a 20 contract between a professional fund-raising counsel or solicitor and a charitable organization must be filed with the Secretary 21 of State Attorney General within ten days after the contract or written agreement is made. Every contract filed under this 22 section must disclose the amount of compensation the professional fund-raising counsel or solicitor will receive, or if there 23 is no flat fee, the percentage of collected revenues the professional fund-raising counsel or solicitor will receive. Every 24 contract or agreement filed under this section must disclose the name and residence address of each person directing or 25 supervising the conduct of services. Every contract or agreement filed under this section and involving telephone solicitation 26 must disclose the location and telephone numbers from which the soliciting will be conducted. 27 Within ninety days after a solicitation campaign has been completed, and on the anniversary of the commencement of 28 a solicitation campaign lasting more than one year, the professional solicitor or the charitable organization must file with the 29 secretary Attorney General a joint financial report for the campaign, including gross revenue and an itemization of expenses. 30 The report must be completed on a form prescribed by the secretary Attorney General and signed by an authorized official 31 of the paid solicitor or an authorized official from the charitable organization and certified to be true. 32 A professional fund-raising counsel, professional solicitor, or charitable organization failing to comply with this section 33 is liable for an administrative fine not to exceed ten dollars for each day of noncompliance, with a maximum fine under each 34 nonregistered agreement of two thousand dollars." 35 36 I. Section 33-56-80 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 37 38 "Section 33-56-80. Registration statements and applications, reports, professional fund-raising counsel contracts or 39 professional solicitor contracts, and all other documents and information required to be filed under this chapter or by the 40 Secretary of State Attorney General are public records in the office of the Secretary of State Attorney General and are open 41 to the general public for inspection at such time and under such conditions as the secretary Attorney General may prescribe. 42 The secretary Attorney General shall publish and make available to the public and to persons subject to this chapter PART II PAGE 532 1 explanatory information concerning this chapter, the duties imposed by this chapter, and the means for enforcing this 2 chapter." 3 4 J. Section 33-56-90(4) of the 1976 Code, as added by Act 461 of 1994, is amended to read: 5 6 "(4) Upon request, a professional solicitor shall display or deliver to the solicited party a copy of his registration 7 certification from the secretary Attorney General." 8 9 K. Section 33-56-100 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 10 11 "Section 33-56-100. In accordance with the regulations promulgated by the secretary Attorney General, every 12 charitable organization and professional fundraiser subject to the provisions of this chapter shall keep the true fiscal records 13 as to its activities in this State. The records must be retained for at least three years after the end of the period of registration 14 to which they relate." 15 16 L. Section 33-56-110 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 17 18 "Section 33-56-110. No person shall act as a professional fund-raising counsel or professional solicitor for a charitable 19 organization subject to the provisions of this chapter, unless he has first registered with the Secretary of State Attorney 20 General. Applications for registration must be in writing under oath or affirmation in the form prescribed by the Secretary 21 of State Attorney General and contain that information as the Secretary of State Attorney General may require. The 22 application for registration by professional fund-raising counsel or professional solicitor must be accompanied by an annual 23 fee of fifty dollars. 24 At the time of making application, professional solicitors shall file with and have approved by the Secretary of State 25 Attorney General a surety bond in which the applicant or his employer shall be the principal obligor in the sum of fifteen 26 thousand dollars with one or more sureties satisfactory to the Secretary of State Attorney General, whose liability in the 27 aggregate as such sureties will at least equal that sum and maintain the bond in effect so long as a registration is in effect. 28 However, a deposit of cash in the amount of fifteen thousand dollars may be accepted in lieu of the bond. The bond shall 29 run to the State of South Carolina for the use of the secretary Attorney General or his appropriate division and any person 30 who may have a cause of action against the obligor of the bonds for losses resulting from malfeasance, nonfeasance, or 31 misfeasance in the conduct of solicitation activities. A partnership or corporation which is a professional solicitor may file 32 a consolidated bond on behalf of all its members, officers, and employees. 33 Each registration is valid throughout the State for one year and may be renewed for additional one-year periods upon 34 written application under oath in the form prescribed by the Secretary of State Attorney General and the payment of the fee 35 prescribed in this chapter. 36 Professional fundraisers or professional fund-raising counsel who fail to comply with the provisions of this section are 37 liable for an administrative fine not to exceed ten dollars for each day of noncompliance, with a maximum fine under this 38 paragraph of two thousand dollars." 39 40 M. Section 33-56-120(2) of the 1976 Code, as added by Act 461 of 1994, is amended to read: 41 42 "(2) No charitable organization, professional fund-raising counsel, or professional solicitor shall use or exploit the fact PART II PAGE 533 1 of registration so as to lead the public to believe that the registration in any way constitutes an endorsement or approval by 2 the State. However, the use of the following statement is not considered a prohibited exploitation: 'Registered with the 3 Secretary of State Attorney General as required by law. Registration does not imply endorsement of a public solicitation for 4 contributions.' " 5 6 N. Section 33-56-130 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 7 8 "Section 33-56-130. If any charitable organization, professional fund-raising counsel, or professional solicitor soliciting 9 contributions from people in this State and having a principal place of business outside the State, or organized under and by 10 virtue of the laws of a foreign state, is subject to the provisions of this chapter and does not otherwise appoint a registered 11 agent for service of process, then that charitable organization, professional fund-raising counsel, or professional solicitor is 12 considered to have irrevocably appointed the secretary Attorney General as an agent upon whom may be served summons, 13 subpoena, subpoena duces tecum, or other process directed to the charitable organization, professional fund-raising counsel, 14 or professional solicitor or any partner, principal officer, or director of it in any action or proceeding brought under the 15 provisions of this chapter. Service of process upon the secretary Attorney General must be made by delivering to and leaving 16 with him personally a copy thereof at the office of the secretary Attorney General and the service shall be sufficient service, 17 provided, that notice of the service and a copy of the process are sent by the secretary Attorney General to the charitable 18 organization, professional fund-raising counsel, or professional solicitor, by registered or certified mail with return receipt 19 requested, at the address set forth in the registration form required to be filed with the secretary Attorney General pursuant 20 to this chapter or, in default of the filing of such form, at the last address known to the secretary Attorney General. Service 21 of the process is complete ten days after the receipt by the secretary Attorney General of a return receipt purporting to be 22 signed by the addressee or a person qualified to receive the registered or certified mail, in accordance with the accepted 23 practices of the United States Postal Service, or, if acceptance was refused by the addressee, ten days after the return to the 24 secretary Attorney General of the original envelope bearing a notation by the postal authorities that receipt thereof was 25 refused." 26 27 O. Section 33-56-140 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 28 29 "Section 33-56-140. (1) Upon his own motion or upon complaint of any person, the secretary Attorney General may 30 investigate any charitable organization, professional fund-raising counsel, or professional solicitor to determine whether the 31 charitable organization, professional fund-raising counsel, or professional solicitor has violated the provisions of this chapter 32 or has filed an application or other information required under this chapter which contains false or misleading statements. 33 The secretary Attorney General may subpoena persons and require the production of books, papers, and other documents 34 to aid in the investigation of alleged violations of this chapter. 35 (2) If any charitable organization, professional fund-raising counsel, or professional solicitor fails to file a registration 36 application, statement, report, or other information required to be filed with the secretary Attorney General under this 37 chapter, or violates the provisions of this chapter, the secretary Attorney General shall notify the delinquent charitable 38 organization, professional fund-raising counsel, or professional solicitor of this fact by mailing a notice by registered or 39 certified mail, with return receipt requested, to its last known address. If the required registration application, statement, 40 annual report, assurance of voluntary compliance, or other information is not filed or if the existing violation is not 41 discontinued within fifteen days after the formal notification or receipt of the notice, the secretary Attorney General may 42 assess an administrative fine not to exceed two thousand dollars against the delinquent organization. PART II PAGE 534 1 (3) In addition to all other actions authorized by law, the secretary or Attorney General, if they have he has reason 2 to believe that one or more of the following acts or violations listed below has occurred, may bring an action to enjoin the 3 charitable organization, professional fund-raising counsel, professional solicitor, or other person from continuing the act or 4 violation, doing any other acts in furtherance of it, and for such other relief as to the court considers appropriate: 5 (a) a person is knowingly and wilfully operating in violation of the provisions of this chapter; 6 (b) a person has knowingly and wilfully made any false statement in any registration application, statement, report, 7 or other information required to be filed by this chapter; 8 (c) a person has failed to file a registration statement or financial report required by this chapter; 9 (d) a person is employed or is about to be employed in any solicitation or collection of contributions any device, 10 scheme, or artifice to defraud or to obtain money or property by means of false pretense, representation, or promise; 11 (e) the officers or representatives of a charitable organization, professional fund-raising counsel, or professional 12 solicitor have refused or failed after notice to produce any records of the organization; or 13 (f) whenever the funds raised by solicitation activities are not devoted or will not be devoted to the charitable 14 purposes of the charitable organization. 15 (4) In addition to the provisions of subsection (3), any person who knowingly and wilfully violates the provisions of 16 this chapter or who knowingly and wilfully gives false or incorrect information to the secretary Attorney General in filing 17 statements or reports required by this chapter, is guilty of a misdemeanor and, upon conviction, for a first offense shall be 18 fined not more than one thousand dollars or be imprisoned for not more than thirty days, and for a second or any subsequent 19 offense shall be fined not more than five thousand dollars or be imprisoned for not more than one year, or both. 20 (5) Any registration application, statement, report, or other information required to be filed with the Secretary of State 21 Attorney General under this chapter by a charitable organization, professional fund-raising counsel, or professional solicitor 22 which contains false or misleading statements may be rejected by the secretary Attorney General and returned to the 23 submitting party without being filed. 24 (6) If a person is assessed an administrative fine under this chapter, the person has thirty days to pay the fine. After 25 thirty days, the secretary Attorney General shall give the delinquent person thirty days' notice that he will seek to enjoin the 26 activities of the person. Before the secretary Attorney General seeks an injunction, the person may pay the fines or request 27 a hearing before the secretary Attorney General. A person who fails to remit fines after the required notice is given may 28 be enjoined from engaging in further charitable solicitation activities until the fine is paid. A person assessed a fine may 29 request an evidentiary hearing before the secretary Attorney General. A person may appeal an adverse ruling by the 30 secretary Attorney General to the circuit court. An appeal to the circuit court shall be governed by the standard of review 31 provided in the Administrative Procedures Act and the case law interpreting that provision. 32 (7) The secretary Attorney General may exercise the authority granted in this section against a person who operates 33 under the guise or pretense of being an organization exempted by the provisions of Section 33-56-40 or 33-56-50 and is not 34 in fact an organization entitled to such an exemption." 35 36 P. Section 33-56-150 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 37 38 "Section 33-56-150. There shall be in the office of the Secretary of State Attorney General a Division of Public 39 Charities which, under the direction and control of the secretary Attorney General, shall perform the duties imposed upon 40 it by the provisions of this chapter. The executive and administrative head of the division shall be the Director of Public 41 Charities designated by the secretary Attorney General." PART II PAGE 535 1 Q. Section 33-56-160 of the 1976 Code, as added by Act 461 of 1994, is further amended to read: 2 3 "Section 33-56-160. All The first two hundred thousand dollars in administrative fines fine revenue imposed received 4 pursuant to this chapter in a fiscal year may be retained by the Attorney General to offset the expenses of enforcing this 5 chapter. All administrative fines collected pursuant to this chapter in excess of two hundred thousand dollars in a fiscal year 6 must be transmitted to the State Treasurer and deposited in the state general fund. All fees collected under this chapter must 7 be transmitted to the State Treasurer and deposited in a fund separate and distinct from the state general fund and used by 8 the Secretary of State Attorney General for the purpose of administering the provisions of this chapter." 9 10 R. Section 33-56-190 of the 1976 Code, as added by Act 461 of 1994, is amended to read: 11 12 "Section 33-56-190. The secretary Attorney General may enter into agreements with the appropriate authority of any 13 other state for the purpose of exchanging information with respect to charitable organizations, professional fund-raising 14 counsel, and professional solicitors." 15 16 S. This section takes effect July 1, 1996. 17 18 19 SECTION 29 20 21 TO AMEND THE 1976 CODE BY ADDING SECTION 23-6-60 SO AS TO PROVIDE THAT REVENUES 22 COLLECTED BY THE DEPARTMENT OF PUBLIC SAFETY MUST BE CREDITED TO A SEPARATE FUND IN 23 THE STATE TREASURY FOR THE USE OF THE DEPARTMENT, TO PROVIDE FOR TRANSITION FUNDING, 24 TO PROVIDE AN UNLIMITED CARRY FORWARD, AND TO ESTABLISH THE DEPARTMENT'S FUNDING AS 25 AN ANNUAL BASE APPROPRIATION BY THE GENERAL ASSEMBLY. 26 27 A. Article 1, Chapter 6, Title 23 of the 1976 Code is amended by adding: 28 29 "Section 23-6-60. Notwithstanding any other provision of law, all revenues collected by the department or on behalf 30 of the department must be deposited into a special separate account in the State Treasury to the credit of the department for 31 its operations. The State Treasurer is authorized to credit to the account of the department those funds as may be necessary 32 for the operation of the department until the time revenues are adequate to cover these costs. The department is allowed to 33 carry forward unexpended balances in the fund from one fiscal year to the next to be used for general operation purposes. 34 Base appropriations for the department must be approved by the General Assembly for the fiscal year in the annual General 35 Appropriations Act." 36 37 B. This section takes effect July 1, 1996. 38 39 40 SECTION 30 41 42 TO AMEND THE 1976 CODE BY ADDING SECTION 23-6-35 SO AS TO PROVIDE THAT THE DEPARTMENT PART II PAGE 536 1 OF PUBLIC SAFETY MAY CHARGE AND COLLECT FEES IN ACCORDANCE WITH SECTION 30-4-30 OF THE 2 FREEDOM OF INFORMATION ACT FOR PROVIDING COPIES OF CERTAIN RECORDS MAINTAINED BY 3 THE DEPARTMENT AND TO PROVIDE FOR THE USE OF REVENUES GENERATED BY THIS PROVISION. 4 5 A. Article 1, Chapter 6, Title 23 of the 1976 Code is amended by adding: 6 7 "Section 23-6-35. The department may charge and collect fees in accordance with Section 30-4-30 of the Freedom of 8 Information Act for providing copies of registration, title, and driver's license information records maintained by the 9 department. 10 Revenue generated from this provision which is above the Board of Economic Advisors' revenue estimate of 11 $107,198,073 for Fiscal Year 1996-97 pursuant to Section 23-6-60 must be set aside in a special account to fund a new class 12 of troopers." 13 14 B. This section takes effect July 1, 1996. 15 16 17 SECTION 31 18 19 TO AMEND SECTION 30-4-40, AS AMENDED, OF THE 1976 CODE, RELATING TO MATTERS THAT ARE 20 EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT 21 THE DEPARTMENT OF PUBLIC SAFETY MAY SELL CERTAIN INFORMATION TO CORPORATIONS WHICH 22 ARE LICENSED TO DO BUSINESS IN THIS STATE. 23 24 A. Section 30-4-40(a)(12) of the 1976 Code, as added by Act 1 of 1995, is amended to read: 25 26 "(12) the name, address, and telephone number of a person in whose name a motor vehicle license plate is registered;. 27 provided, however, This exemption from disclosure shall not apply to an active duty law enforcement officer or agency 28 authorized by law to have access to this information. The Department of Public Safety also may release this information 29 and other motor vehicle information pursuant to 18 U.S.C. 2721. The department may promulgate regulations to administer 30 this provision." 31 32 B. This section takes effect July 1, 1996. 33 34 35 SECTION 32 36 37 TO AMEND THE 1976 CODE BY ADDING SECTIONS 4-9-142, 5-21-70, 6-1-60, AND 59-73-35 SO AS TO IMPOSE 38 LIMITS ON CERTAIN PROPERTY TAX MILLAGE AND FEE INCREASES IMPOSED BY COUNTIES AND 39 MUNICIPALITIES, AND ON THE USE OF NEW REVENUE SOURCES FOR OPERATING PURPOSES AND TO 40 PROVIDE EXCEPTIONS, TO IMPOSE LIMITS ON CERTAIN PROPERTY TAX MILLAGE INCREASES 41 IMPOSED BY SPECIAL PURPOSE OR PUBLIC SERVICE DISTRICTS AND ON THE USE OF NEW REVENUE 42 SOURCES FOR OPERATING PURPOSES AND TO PROVIDE EXCEPTIONS; AND TO IMPOSE LIMITS ON PART II PAGE 537 1 CERTAIN PROPERTY TAX MILLAGE INCREASES IMPOSED BY THE GOVERNING BODIES AUTHORIZED 2 BY LAW TO LEVY SCHOOL TAXES AND ON THE USE OF NEW REVENUE SOURCES FOR OPERATING 3 PURPOSES AND TO PROVIDE EXCEPTIONS; TO MAKE THE PAYMENT OF REIMBURSEMENTS FOR 4 HOMESTEAD EXEMPTIONS CONDITIONAL ON THESE ENTITIES CERTIFYING IN WRITING TO THE 5 COMPTROLLER GENERAL THAT THEY HAVE MET THESE REQUIREMENTS; AND TO AMEND SECTION 6 11-11-440, RELATING TO THE PROHIBITION ON GENERAL TAX INCREASES OR NEW GENERAL TAXES 7 AS PERMANENT PROVISIONS IN APPROPRIATIONS BILLS, SO AS TO REQUIRE THE SEPARATE 8 LEGISLATION REQUIRED FOR THESE PURPOSES TO PASS EACH HOUSE OF THE GENERAL ASSEMBLY 9 BY AT LEAST A MAJORITY OF TWO-THIRDS OF THE MEMBERS. 10 11 A. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding: 12 13 "Section 4-9-142. (A) The governing body of a county may not increase the millage rate and fee rates imposed for 14 operating purposes, excluding utilities, above the rates imposed for such purposes for the prior tax year. However, the 15 millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote 16 of the governing body of the county. Notwithstanding the limitation upon millage rate and fee rate increases contained in 17 this subsection, the millage rate and fee rates may be increased for the following purposes: 18 (1) in response to a natural or environmental disaster as declared by the Governor; 19 (2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset 20 a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an 21 amount necessary to cover that deficit; or 22 (3) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, 23 facilities, or equipment. 24 (B) Notwithstanding any other provision of law, the millage rate and fee rates may be further increased upon a two- 25 thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds 26 vote of the governing body of the county. However, if the governing body has fewer than six members, a three-fifths vote 27 is required. 28 (C) The restriction contained in this section does not affect millage which is levied to pay bonded indebtedness or 29 payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in 30 this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670. 31 (D) Notwithstanding any other provision of law, no reimbursement otherwise due a county pursuant to Section 12-37- 32 270 may be paid unless the governing body of the county certifies in writing to the Comptroller General that the county has 33 complied with the requirements of this section." 34 35 B. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding: 36 37 "Section 5-21-70. (A) The governing body of a municipality may not increase the millage rate and fee rates, excluding 38 utilities, imposed for operating purposes above the rate and fee rates imposed for such purposes for the prior tax year. 39 However, the millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a 40 three-fifths vote of the governing body of the municipality. Notwithstanding the limitation upon millage rate and fee rate 41 increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes: 42 (1) in response to a natural or environmental disaster as declared by the Governor; PART II PAGE 538 1 (2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset 2 a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an 3 amount necessary to cover that deficit; or 4 (3) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, 5 facilities, or equipment. 6 (B) Notwithstanding any other provision of law, the millage rate and fee rates may be further increased upon a two- 7 thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds 8 vote of the governing body of the municipality. However, if the governing body has fewer than six members, a three-fifths 9 vote is required. 10 (C) The restriction contained in this section does not affect millage which is levied to pay bonded indebtedness or 11 payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in 12 this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670. 13 (D) Notwithstanding any other provision of law, no reimbursement otherwise due a municipality pursuant to Section 14 12-37-270 may be paid unless the governing body of the municipality certifies in writing to the Comptroller General that 15 the municipality has complied with the requirements of this section." 16 17 C. Chapter 1, Title 6 of the 1976 Code is amended by adding: 18 19 "Section 6-1-60. (A) The governing body authorized by law to levy special purpose or public service district taxes may 20 not increase the millage rate imposed for operating purposes above the rate imposed for such purposes for the prior tax year. 21 The millage rate, however, may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote 22 of the governing body authorized by law to levy special purpose or public service district taxes. Notwithstanding the 23 limitation upon millage rate increases contained in this subsection and only to the extent authorized by law on the effective 24 date of this section, the governing body authorized by law to levy special purpose or public service district taxes may 25 increase the millage rate for the following purposes: 26 (1) in response to a natural or environmental disaster as declared by the Governor; 27 (2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or 28 (3) to raise the revenue necessary to comply with judicial mandates requiring the use of special purpose or public 29 service district funds, personnel, facilities, or equipment. 30 (B) The millage rate may be further increased upon a two-thirds vote of the governing body authorized by law to levy 31 special purpose or public service district taxes. Any new sources of revenues for operating purposes must be approved by 32 a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. However, 33 if the governing body has fewer than six members, a three-fifths vote is required. 34 (C) The restriction contained in this section does not affect millage which is levied to pay bonded indebtedness or 35 payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. 36 (D) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the 37 fiscal autonomy of a special purpose or public service district to the extent those limitations are more restrictive than the 38 provisions of this section. 39 (E) Notwithstanding any other provision of law, no reimbursement otherwise due a special purpose or public service 40 district pursuant to Section 12-37-270 may be paid unless the governing body authorized by law to levy special purpose or 41 public service district taxes certifies in writing to the Comptroller General that the district has complied with the requirements 42 of this section." PART II PAGE 539 1 D. Chapter 73, Title 59 of the 1976 Code is amended by adding: 2 3 "Section 59-73-35. (A) The governing body authorized by law to levy school taxes may not increase the millage rate 4 imposed for operating purposes above the rate imposed for such purposes for the prior tax year. 5 (B) The millage rate, however, may be increased by the percentage increase in the Consumer Price Index upon a three- 6 fifths vote of the governing body authorized by law to levy school taxes of the school district. Notwithstanding the limitation 7 upon millage rate increases contained in this subsection, the millage rate may be increased for the following purposes: 8 (1) to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and 9 Control Board, Office of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030; 10 (2) in response to a natural or environmental disaster as declared by the Governor; 11 (3) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or 12 (4) to raise the revenue necessary to comply with judicial mandates requiring the use of school district funds, 13 personnel, facilities, or equipment. 14 (C) Notwithstanding any other provision of law, the millage rate may be increased upon a two-thirds vote of the 15 governing body authorized by law to levy school taxes of the school district. Any new sources of revenues for operating 16 purposes must be approved by a two-thirds vote of the governing body authorized by law to levy school taxes of the school 17 district. 18 (D) The restriction contained in this section does not affect millage which is levied to pay bonded indebtedness or 19 payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in 20 this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670. 21 (E) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the 22 fiscal autonomy of a school district to the extent those limitations are more restrictive than the provisions of this section. 23 (F) The provisions of this section do not apply to a school district in which any increase in the ad valorem school tax 24 levy for a particular year must be approved by the qualified electors of the school district in a referendum. 25 (G) Notwithstanding any other provision of law, no reimbursement otherwise due a school district pursuant to Sections 26 12-37-270 and 12-37-251 may be paid unless the governing body authorized by law to levy school taxes certifies in writing 27 to the Comptroller General that the district has complied with the requirements of this section." 28 29 E. Section 11-11-440(A) of the 1976 Code is amended to read: 30 31 "(A) The General Assembly may not provide for any general tax increase or enact new general taxes in the permanent 32 provisions of the State General Appropriation Act or acts supplemental thereto., and any such Any general tax increases 33 or new general taxes must be enacted only by separate act passed by a vote of at least two-thirds of the members of each 34 house." 35 36 F. This section takes effect January 1, 1997, and applies for property tax years and fiscal years beginning after 1996. 37 38 39 SECTION 33 40 41 TO AMEND SECTION 11-11-330 OF THE 1976 CODE, RELATING TO THE STATE PROPERTY TAX RELIEF 42 FUND, SO AS TO PROVIDE FOR A SPECIFIC REIMBURSEMENT TO SCHOOL DISTRICTS FOR REVENUES PART II PAGE 540 1 LOST TO THE HOMESTEAD EXEMPTION; AND TO AMEND SECTION 12-37-251, RELATING TO THE 2 HOMESTEAD PROPERTY TAX EXEMPTION FROM SCHOOL OPERATING TAXES, SO AS TO PROVIDE FOR 3 AN EXEMPTION AMOUNT OF ONE HUNDRED THOUSAND DOLLARS OF FAIR MARKET VALUE AND 4 USING A BASE YEAR MILLAGE RATE EQUAL TO THE SCHOOL OPERATING MILLAGE FOR THE 1996-97 5 SCHOOL YEAR. 6 7 A. Section 11-11-330 of the 1976 Code, as added by Act 145 of 1995, is amended to read: 8 9 "Section 11-11-330. Funds credited to the `State Property Tax Relief Fund' must be used to provide property tax relief 10 in the manner prescribed in Section 12-37-251. The General Assembly shall appropriate an amount sufficient to reimburse 11 sums equal to the amount of taxes that were not collected for the local government school districts by reason of the exemption 12 provided in Section 12-37-251." 13 14 B. Subsections (A) and (B) of Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, are amended to read: 15 16 "(A) Except as provided in subsection (F), an amount equal to one hundred thousand dollars of the fair market value 17 of property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than base year school 18 operations. The exemption does not extend to school taxes levied for bonded indebtedness and payments pursuant to 19 lease-purchase agreements for capital construction. The exemption applies against millage imposed for school operations 20 and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the 21 Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund. The applicable 22 millage to calculate the exemption is the school operating millage imposed for the 1996-97 school year. This 1996-97 millage 23 is the base year millage for purposes of this exemption for succeeding property tax years. However, in years in which the 24 values resulting from a countywide reassessment and equalization program are implemented, the base year millage must be 25 adjusted to an equivalent millage rate in the manner that the Comptroller General shall prescribe. 26 (B) Taxing entities School districts must be reimbursed, in the manner provided in Section 12-37-270, for the revenue 27 lost as a result of the homestead exemption provided in this section except that ninety percent of the reimbursement must 28 be paid in the last quarter of the calendar year." 29 30 C. This section applies for property tax years beginning after 1995. 31 32 33 END OF PART II 34 35 All Acts or parts of Act inconsistent with any of the provisions of Part I of this Act are hereby suspended for the Fiscal 36 Year 1996-97. 37 All Acts or parts of Acts inconsistent with any of the provisions of Part II of this Act are hereby repealed. Except as 38 otherwise specifically provided herein this Act shall take effect immediately upon its approval by the Governor.