The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of Laws of South Carolina, 1976, and all supplements to the Code.

TO AMEND SECTION 59-35-10, AS AMENDED, OF THE 1976 CODE, RELATING TO KINDERGARTEN CLASSES WITHIN EACH SCHOOL DISTRICT OF THIS STATE, SO AS TO PROVIDE THAT FULL-DAY FIVE-YEAR-OLD KINDERGARTEN MUST BE PROVIDED TO ANY ELIGIBLE CHILD WHOSE PARENTS DESIRE FOR THEM TO ATTEND THAT KINDERGARTEN PROGRAM, AND TO PROVIDE FOR A WAIVER OF THE ABOVE REQUIREMENTS UNDER CERTAIN CONDITIONS.

Section 59-35-10 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

    "Section 59-35-10.    The board of trustees of each school district shall establish and provide kindergartens for children within its jurisdiction. All children in the five-year-old kindergarten program must be counted in the average daily membership of any public school district when public school funds are to be apportioned to the several school districts. State aid for the five-year-old kindergarten program must be distributed through the formula provided for in the 'Education Finance Act' (Act 163 of 1977).
    Beginning with school year 1998-99, school districts shall offer an extended day five-year-old kindergarten program to all requesting parents and shall be eligible for funding for the extended day equal to the EFA weight for a child attending a half-day five-year-old kindergarten program. Local match is required for the extended-day funding. The State Board of Education may waive the full-day kindergarten requirement for a particular school district on an annual basis upon application of the district if the board finds the school district does not have available space and the cost of temporary classroom space cannot be justified.
    Parents of children who are eligible to attend the extended-day five-year-old kindergarten may elect the half-day program for their children. Parents intending to enroll their eligible children in a full-day kindergarten program must notify the district by January thirty-first of the year of the anticipated enrollment date. Parents moving into the district after the notification date may apply for full-day kindergarten, and the district shall enroll such child in its full-day program on a space available basis. Any parent or guardian of a child eligible for kindergarten may elect for their child or ward not to attend kindergarten pursuant to Section 59-65-10."

TO AMEND THE 1976 CODE BY ADDING SECTION 59-123-125 SO AS TO PROVIDE FOR THE MANNER IN WHICH FUNDS APPROPRIATED TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA FOR THE "RURAL PHYSICIAN PROGRAM" SHALL BE ADMINISTERED, MANAGED, AND ALLOCATED.

A.    The 1976 Code is amended by adding:

    "Section 59-123-125.    The funds appropriated to the Medical University of South Carolina for the 'Rural Physician Program' shall be administered by the South Carolina Area Health Education Consortium physician recruitment office. The Medical University of South Carolina shall be responsible for the fiscal management of funds to ensure that state policies and guidelines are adhered to. A board is hereby created to manage and allocate these funds in the best interests of the citizens of South Carolina. The board shall be composed of the following: the Executive Director, or his designee, of the South Carolina Primary Care Association; the Dean, or his designee, of the University of South Carolina School of Medicine; the Executive Director, or his designee, of the South Carolina Medical Association; two representatives from rural health care settings, one to be appointed by the Chairman of the Senate Medical Affairs Committee and one to be appointed by the Chairman of the House Medical, Military, Public and Municipal Affairs Committee; the Commissioner, or his designee, of the Department of Health and Environmental Control; the Commissioner, or his designee, of the South Carolina Hospital Association; the Commissioner, or his designee, of the Commission on Higher Education; and the Director, or his designee, of the Department of Health and Human Services. The Chairman, with the concurrence of the board, shall appoint three at-large members with two representing nursing and one representing allied health services in South Carolina."

B.     This section takes effect upon approval by the Governor.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-123-115 SO AS TO PROVIDE FOR THE MANNER IN WHICH THE SOUTH CAROLINA AREA HEALTH EDUCATION CONSORTIUM SHALL BE AWARDED FUNDING FOR CERTAIN PROGRAMS.

A.    The 1976 Code is amended by adding:

    "Section 59-123-115.    The South Carolina Area Health Education Consortium shall be awarded funding for the Statewide Family Practice Residency System, the Graduate Doctor Education Program, and the Area Health Education Center Program based on the appropriate formula, as approved by the Area Health Education Consortium and the Commission on Higher Education, and the funding methodology shall be applied in a manner consistent with that of other state institutions of higher learning."

B.    This section takes effect upon approval by the Governor.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-117-85 SO AS TO PROVIDE THAT EMPLOYEES OF AGENCIES AND INSTITUTIONS AFFILIATED WITH THE UNIVERSITY OF SOUTH CAROLINA SCHOOL OF MEDICINE, WHO HOLD FACULTY APPOINTMENTS IN THE SCHOOL, MAY PARTICIPATE IN THE SCHOOL'S PRACTICE PLAN, AND TO PROVIDE THAT FUNDS GENERATED BY SUCH PARTICIPANTS SHALL BE HANDLED IN ACCORDANCE WITH UNIVERSITY POLICIES GOVERNING PRACTICE PLAN FUNDS.

A.    The 1976 Code is amended by adding:

    "Section 59-117-85.    Employees of agencies and institutions affiliated with the University of South Carolina School of Medicine who hold faculty appointments in the school may participate in the school's practice plan. Funds generated by such participants shall be handled in accordance with university policies governing practice plan funds."

B.    This section takes effect upon approval by the Governor.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-113-45 SO AS TO PROVIDE THAT SOUTH CAROLINA TUITION GRANT FUNDS SHALL BE DISBURSED TO ELIGIBLE STUDENTS ON A SEMESTER-BY-SEMESTER BASIS, AND TO PROVIDE FOR THE MANNER IN WHICH INTEREST ACCRUING ON THE BALANCE OF UNDISBURSED TUITION GRANT FUNDS SHALL BE CALCULATED AND AWARDED.

A.    The 1976 Code is amended by adding:

    "Section 59-113-45.    South Carolina Tuition Grant funds shall be disbursed to eligible students on a semester-by-semester basis. Interest accruing on the balance of undisbursed tuition grant funds on deposit with the State Treasurer's office from September fifteenth through December thirty-first shall be calculated by the State Treasurer's office and transferred within thirty days to the South Carolina Tuition Grant Commission to be awarded as tuition grants to eligible students."

B.    This section takes effect upon approval by the Governor.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-410 SO AS TO PROVIDE THAT THE GOVERNING BOARDS OF STATE-SUPPORTED COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS MAY LEND THEIR ENDOWMENT FUNDS AND AUXILIARY ENTERPRISE FUNDS TO SEPARATELY CHARTERED NOT-FOR-PROFIT LEGAL ENTITIES WHOSE EXISTENCE IS PRIMARILY TO PROVIDE FINANCIAL ASSISTANCE AND OTHER SUPPORT TO THE INSTITUTION AND ITS EDUCATIONAL PROGRAM, AND TO PROVIDE THE CONDITIONS UNDER WHICH THE FUNDS MAY BE LOANED.

A.    The 1976 Code is amended by adding:

    "Section 59-101-410.    (A)    As used in this section, 'auxiliary enterprise funds' means athletics revenues and funds derived from bookstore, licensing, vending, concessions, and food service operations.
    (B)    The governing boards of all state-supported colleges, universities, and technical schools may lend from time to time their endowment funds and auxiliary enterprise funds, including interest derived therefrom, currently on deposit with the State Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily providing financial assistance and other support to the institution and its educational program. The governing boards of all state-supported colleges, universities, and technical schools also may lend from time to time their future endowment funds and auxiliary enterprise funds received, including interest derived therefrom, currently on deposit with the State Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily to provide financial assistance and other support to the institution and its educational program, provided however, that all of these funds must first be recorded with the State Treasurer's Office. Income from the loan of auxiliary funds as provided in this section must be used solely for scholarship purposes. The loans must be in accordance with such terms and conditions as determined by the respective institution's governing body."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 59-53-53, AS AMENDED, OF THE 1976 CODE, RELATING TO BORROWING BY AREA COMMISSIONS OF TECHNICAL COLLEGES AND THE MANNER IN WHICH THESE AREA COMMISSIONS ARE AUTHORIZED TO DISPOSE OF SURPLUS REAL PROPERTY, SO AS TO REVISE THE MANNER IN WHICH AND PROCEDURES UNDER WHICH SURPLUS REAL PROPERTY MAY BE DISPOSED OF BY TECHNICAL COLLEGES; AND TO AMEND SECTION 59-101-180, RELATING TO THE SALE AND DISPOSAL OF REAL PROPERTY BY STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING, SO AS TO REVISE THE MANNER IN WHICH AND PROCEDURES UNDER WHICH SURPLUS REAL PROPERTY MAY BE DISPOSED OF BY THESE INSTITUTIONS.

A.    Section 59-53-53 of the 1976 Code, as last amended by Act 676 of 1988, is further amended to read:

    "Section 59-53-53.    (A)    The area commission of any technical education institution under the jurisdiction of the South Carolina technical education system may borrow for capital improvements from a federal or other lending agency an amount not to exceed its ability to repay the loan through the imposition of a special fee. The terms of the loan may not exceed forty years. An area commission may issue covenants, enter into mortgages, and grant liens limiting the sale or use of certain parcels of real or personal property in its possession when required as a condition of accepting a grant, loan, or donation for specified capital improvement projects.
    To amortize the loan, a special fee must be imposed within the limits established by the state board, the proceeds of which must be deposited in a special account to be used for payment of the loan in accordance with the terms negotiated by the commission and the lender. No funds other than the revenue from the special fee may be pledged for payment of the loan.
    (B)    The governing body for each technical college shall review the real property titled in the name of its institution to determine if such property is in excess of the institution's anticipated needs and is available for disposal. All real properties determined to be in excess may be disposed of with the approval of the State Board for Technical and Comprehensive Education, the Budget and Control Board, and the Joint Bond Review Committee. The proceeds of such sales are to be disposed of as follows:
        (1)    if the property was acquired by gift, or through tuition, student fees, county funds, or earned income, the proceeds may be retained by the selling institution for use in accord with established needs;
        (2)    if the property was acquired through state appropriations, state capital improvement bonds, or formula funds, the proceeds shall revert to the state general fund.
    The responsibility for providing any necessary documentation including, but not limited to, documenting the fund source of any real property proposed for sale rests with each respective institution."

B.    Section 59-101-180 of the 1976 Code is amended to read:

    "Section 59-101-180.    The governing body for each state-supported college and university shall review the real property titled in the name of its institution to determine if such property is in excess of the institution's anticipated needs and is available for disposal. All real properties determined to be in excess may be disposed of with the approval of the Budget and Control Board and the governing body for the college or university. The proceeds of such sales are to be disposed of as follows:
        (1)    if the property was acquired as a gift, or through tuition, student fees or earned income, the proceeds may be retained by the selling institution for use in accord with established needs;
        (2)    if the property was acquired through state appropriations, state capital improvement bonds, or formula funds, the proceeds shall revert to the state general fund.
    The responsibility for providing any necessary documentation including, but not limited to, documenting the fund source of any real property proposed for sale rests with each respective institution."

C.    This section takes effect upon approval by the Governor.

TO AMEND CHAPTER 65, TITLE 2, OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA FEDERAL AND OTHER FUNDS OVERSIGHT ACT, SO AS TO DEVOLVE THE FUNCTIONS OF THE GOVERNOR UNDER THE ACT TO THE BUDGET AND CONTROL BOARD EXCEPT THAT THE AGENCY OPERATING THE BLOCK GRANTS SHALL CONDUCT THE PUBLIC HEARINGS, ELIMINATE THE REQUIREMENT THAT THE STATE BUDGET AND CONTROL BOARD SHALL FOLLOW THE RECOMMENDATIONS OF THE GOVERNOR WITH RESPECT TO THE APPLICATION OF THE ACT, TO EXEMPT CERTAIN FEDERAL GRANTS AND CONTRACTS FROM COST RECOVERY REQUIREMENTS, AND TO MAKE GRAMMATICAL AND OTHER TECHNICAL CHANGES.

A.    Chapter 65, Title 2 of the 1976 Code is amended to read:

    Section 2-65-10.    This chapter may be cited as 'The South Carolina Federal and Other Funds Oversight Act'.

    Section 2-65-15.    As used in this chapter:
        (1)    'Appropriations act' means the annual general appropriations act.
        (2)    'Agency' means any state office, department, institution, board, commission, council, committee, or other entity of the executive, judicial, or legislative branch.
        (3)    'Block grant' means federal funds distributed to the State in accordance with a statutory formula for use in a variety of activities within a broad functional area.
        (4)    'Board' means the State Budget and Control Board.
        (5)    'Federal funds' means financial assistance made to a state agency by the United States Government in any form including, but not limited to, a grant, loan, subsidy, reimbursement, contract, donation, or shared federal revenues, or noncash federal assistance in the form of equipment, buildings, and land. Financial assistance which originates with the United States Government, but which is received by a state agency from another state or local agency in any form, is considered 'federal funds'.
        (6)    'Indirect costs' means those costs of supportive services within an agency or provided by another agency which benefit more than one program and which may be charged to federal programs in accordance with Office Management and Budget Circular A-87 or A-21.
        (7)    'Matching funds' means a specific amount of general fund monies identified by a state agency, and required by the federal government, as a cash contribution for a federal program.
        (8)    'Other funds' means any revenues received by an agency which are not federal funds and are not general funds appropriated by the General Assembly in the appropriations act.
        (9)    'Research grant' means an award of funds from the United States Government or other entity for the principal purpose of systematic study and investigation undertaken to discover or establish facts or principles. The principal purpose of a 'research grant' is not to provide services to the public or to the employees or clients thereof.
        (10)    'Major federal program' means a program which:
            (a)    represents a transfer of program responsibility from the federal to the state level;
            (b)    is available to the State on a noncompetitive basis;
            (c)    is financially significant in relation to its proportion of the administering agency's budget.
    Any new block grant or any form of federal turnback program is considered a 'major federal program'.

    Section 2-65-20.    The General Assembly shall appropriate all anticipated federal and other funds for the operations of state agencies in the appropriations act and must include any conditions on the expenditure of these funds as part of the appropriations act, consistent with federal laws and regulations. Increases in project amounts as appropriated in the act must be authorized in accordance with procedures set forth in Section 2-65-40, consistent with policies as provided in the appropriations act and other applicable laws and regulations.
    (1)    All agencies shall provide to the board, as part of their budget submissions, detailed statements of the sources of all federal and other funds contained in their budgets.
    (2)    All state agencies shall submit programmatic and financial information for each federal project to the board in a manner prescribed by the board. The information must be submitted in a timely manner so as to permit review of the projects as part of the budget process.
    (3)    The board shall provide to the Ways and Means Committee and the Senate Finance Committee at appropriate times during the budget review process its recommendations on all federal projects.
    (4)    The appropriation of federal funds must be decreased to the extent that receipts from these sources do not meet the estimates reflected in each section of the appropriations act.
    (5)    With the exception of funds defined as 'exempt' in Section 2-65-100, no agency may receive or spend federal or other funds that are not authorized in the appropriations act, but unanticipated federal or other funds may be received and spent upon authorization pursuant to Section 2-65-30 or 2-65-40, as applicable.

    Section 2-65-30.    (A)    A state agency may receive and spend unanticipated federal funds, and funds from private foundations or industries, which are not included in the appropriations act, but state agencies must submit expenditure proposals to the board and receive authorization from the board before expenditure of funds. No authorization may be made without first securing and considering the board's recommendation on each expenditure proposal. Any such authorization is subject to all of the following standards:
        (1)    The unanticipated nature of the project precluded it from consideration and approval as part of the state appropriations process as described in Section 2-65-20.
        (2)    The project assists the applicant state agency to achieve objectives or goals in keeping with the recognized powers and functions of the state agency.
        (3)    The applicant state agency is the appropriate entity to conduct project activities and no duplication of services is created by the authorization.
        (4)    State matching funds, if required, are available within the existing resources of the applicant state agency.
        (5)    The project benefits the health or welfare of the people of the State.
    (B)    Notwithstanding any other provisions of this chapter, no authorization of unanticipated federal or private foundation or industry funds may involve a commitment of future legislative enactment to provide additional state funds to support the project.
    (C)    The board shall provide the House Ways and Means Committee and the Senate Finance Committee with periodic reports which describe actions taken under the provisions of this section.
    (D)    Notwithstanding any other provisions of this chapter, a state agency may not implement an unanticipated major federal program without prior approval of the General Assembly, except:
        (1)    that to the extent that the unanticipated program replaces existing services currently provided by a state agency, other governmental entity, private nonprofit organization, or other service provider, the services may be authorized by the board to continue at an equivalent level, within the constraints of federal law and funding, until the General Assembly acts;
        (2)    if the unanticipated program creates services not currently provided, and the board agrees that delayed implementation would result in a significant loss of federal funds to the State, the program may be authorized by the board to proceed at a minimal level, until such time as the General Assembly may act.

    Section 2-65-40.    (A)    A state agency may spend 'other' funds above the amount in the appropriations act and increases in anticipated federal programs if the expenditure of the funds receives the authorization of the board.
    (B)    Authorizations under this section are subject to the following standards, as applicable:
        (1)    the proposed use of the funds do not result in a fund of surplus money which may be used by the agency to expand programs without legislative approval;
        (2)    if the funds are earmarked for specific use in the appropriations act, or by federal law or regulation, any additional funds must be used for the same purpose;
        (3)    if the increase results from a fee or charge for service, the agency has the legal authority to impose the fee, and has secured any approvals required by applicable law or regulations;
        (4)    the proposed use of funds assists the state agency to achieve objectives or goals in keeping with the recognized powers and functions of the state agency;
        (5)    if the funds are generated from a new revenue source:
            (a)    the proposed use of funds covers only a minimum amount of administrative costs necessary to support the revenue collection, and any excess must be remitted to the general fund of the State;
            (b)    it is determined that the requesting state agency is the appropriate entity to carry out the proposed activities and no duplication of services is created by the authorization;
        (6)    if the increase in federal funds requires a corresponding increase in state matching funds, the state match is available from existing resources.
    (C)    The board shall provide the House Ways and Means Committee and the Senate Finance Committee with periodic reports which describe actions taken under the provisions of this section.

    Section 2-65-50.    Agencies shall include estimates of research and student aid funds in the detailed budget statements required in Section 2-65-20 (1) of this chapter. Agencies may not be required to submit the detailed programmatic and financial information required in Section 2-65-20(2) of this chapter, except that the agencies must furnish to the board notices of actual awards and allocations of research and student aid funds within fourteen days of receipt of the notices from funding agencies. The board shall maintain quarterly reports of the funds received by the agency, and must, upon request, provide copies to the House Ways and Means Committee or the Senate Finance Committee, or both.

    Section 2-65-60.    The Comptroller General shall account for and control expenditures of individual federally funded projects for all agencies using the Statewide Accounting and Reporting System. For continuing federal projects, the board shall certify to the Comptroller General the actual funds approved for each project pursuant to Section 2-65-20 of this chapter, and any further adjustments to this amount, based on grant award documentation and pursuant to Section 2-65-40 of this chapter. For new federally funded projects, the board shall inform the Comptroller General of funding levels authorized pursuant to Section 2-65-30 of this chapter.
    The Comptroller General shall authorize expenditures on each project not to exceed the amount certified by the board. Upon request of the board, the House Ways and Means Committee, or the Senate Finance Committee, the Comptroller General shall provide periodic reports of authorization levels, expenditures, revenues, and other data related to the federal projects. Upon request of the board, the House Ways and Means Committee, or the Senate Finance Committee, state agencies shall provide grant award and related actual funding information.

    Section 2-65-70.    (A)    All agencies receiving federal grants or contracts shall recover the maximum allowable indirect costs on those projects, subject to applicable federal laws and regulations. All indirect cost recoveries must be credited to the general fund of the State, with the exception of recoveries from research and student aid grants and contracts. Further, after January 1, 1999, federal grants and contracts whose annual award is two hundred thousand dollars or less are exempted also from this cost recovery requirement.
        (1)    Each agency receiving grants or contracts to which indirect costs may be charged must have an approved indirect cost rate or cost allocation plan. Agencies shall prepare the indirect cost proposals and submit them to the board for review. The board shall submit the proposals to the appropriate federal agencies, negotiate the agreements, and transmit approved agreements to the state agencies. The board, upon request, also shall provide a report on the proposals to the House Ways and Means Committee or the Senate Finance Committee, or both.
        (2)    The board annually shall prepare the Statewide Cost Allocation Plan for allocation of central service costs to federal and other programs. The board shall ensure that state agencies recover costs approved in the plan through federal grants and contracts, subject to federal laws and regulations.
        (3)    The State Comptroller General shall assist the board in ensuring compliance with this section.
    (B)    If it is determined to be in the best interest of the State and the agency receiving the federal funds, the requirements of this section may be waived; except that indirect cost waivers may not be granted for unanticipated federal projects authorized pursuant to Section 2-65-30 of this chapter. Requests for indirect cost waivers for continuing federal projects must be made by the applicant agency as a part of its budget request and must be reviewed in accordance with the provisions of Section 2-65-20 of this chapter.

    Section 2-65-80.     (A) The General Assembly shall designate through the appropriations act an agency to operate each block grant. If a new block grant is approved by Congress after the appropriations act has been approved, it must be approved in accordance with the provisions of Section 2-65-30 (D) of this chapter.
    (B)    The agency operating each block grant shall conduct public hearings for those block grants for which federal laws and regulations require legislative public hearings, and any other block grants for which legislative public hearings are considered necessary. Public comments must be taken into consideration by the board in review and authorization of federal funds according to the procedures set forth in Section 2-65-20 of this chapter.
    (C)    The board, in accordance with Chapter 23 of Title 1, shall issue administrative regulations and cost principles for block grants.
    (D)    The board shall ensure that audits of block grants are conducted in accordance with federal laws and regulations.

    Section 2-65-90.    The board shall design and operate a state process for review and coordination of proposed federal financial assistance and direct federal development by state and local officials as required by Section 401(a) of the federal Intergovernmental Cooperation Act of 1968 and federal regulations and executive orders. The board shall seek the advice of the South Carolina Advisory Commission on Intergovernmental Relations and the Regional Councils of Government in the development and implementation of the state process.

    Section 2-65-100.    Funds from the following sources are exempt from the requirements of this chapter:
        (1)    general fund appropriations;
        (2)    funds appropriated by a South Carolina local government;
        (3)    research and student aid grants, except as otherwise provided in this chapter;
        (4)    donated materials, supplies, in-kind services, buildings, land and equipment, if the donations do not create a future obligation of state general fund monies. If a donation does create a future obligation of state general fund monies, the donation is subject to review and approval, in accordance with Section 2-65-30 of this chapter;
        (5)    federal funds used in connection with capital improvement bond funds subject to authorization pursuant to Act 1377 of 1968.

    Section 2-65-110.    RESERVED

    Section 2-65-120.    Notwithstanding any other provisions of law, all agencies and institutions of the State shall cooperate fully with the board in the implementation of this chapter."

B.    This section takes effect July 1, 1998.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-119-165 SO AS TO PROVIDE THAT THE BUDGET AND CONTROL BOARD, IN CONJUNCTION WITH THE DEPARTMENT OF EDUCATION, SHALL TRANSFER ALL FEDERAL FUNDS ASSOCIATED WITH AGRICULTURAL EDUCATION AT THE DEPARTMENT OF EDUCATION TO CLEMSON-PSA (PUBLIC SERVICE ACTIVITIES) NO LATER THAN JULY FIFTEENTH OF EACH FISCAL YEAR AND TO PROVIDE FOR THE MANNER IN WHICH THESE FUNDS ARE REQUIRED TO BE USED.

The 1976 Code is amended by adding:

    "Section 59-119-165.    The Budget and Control Board, in conjunction with the Department of Education, shall transfer all federal funds associated with Agricultural Education at the Department of Education to Clemson-PSA (Public Service Activities) no later than July fifteenth of each fiscal year. Notwithstanding any other provisions of law, funds and positions transferred to Clemson-PSA from the Department of Education for Agricultural Education shall be used for personnel positions and related office and travel expenses to provide overall leadership, coordination, and structure for agricultural education programs, and South Carolina Association of Young Farmers activities in the public schools of this State. Clemson-PSA shall provide a report to the Department of Education on the use and expenditure of the federal funds transferred by the Department of Education to Clemson-PSA no later than December first of each fiscal year."

TO AMEND SECTION 50-9-910 OF THE 1976 CODE, RELATING TO REVENUE IN CONNECTION WITH FISH, GAME, AND WATERCRAFT, SO AS TO PROVIDE THAT ONE-HALF THE REVENUE FROM ANNUAL NONRESIDENT FISHING LICENSES BE CREDITED TO THE GAME FUND OF THE COUNTY WHERE THE REVENUE WAS COLLECTED.

A.    Section 50-9-910(B) of the 1976 Code, as added by Act 372 of 1996, is amended to read:

    "(B)    The revenue provided for in subsection (A) and one-half of the revenue generated from the sale of annual nonresident fishing licenses must be credited to the county game fund of the county in which the licenses were sold or revenue was collected."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 35-1-220, AS AMENDED, OF THE 1976 CODE, RELATING TO FUNDS FROM FEES AND LITIGATION SETTLEMENT ALLOWED TO BE RETAINED BY THE ATTORNEY GENERAL FOR OPERATION OF THE SECURITIES DIVISION, SO AS TO ALLOW FIVE HUNDRED THOUSAND DOLLARS OF ANNUAL FEE REVENUES TO BE RETAINED BY THE ATTORNEY GENERAL FOR THE OPERATIONS OF THE SECURITIES DIVISION.

A. Section 35-1-220(A) of the 1976 Code, as amended by Act 134 of 1997, is further amended to read:

    "(A)    The Attorney General may retain the first five hundred thousand dollars from fee revenues collected pursuant to this chapter to be used for the operations of the Securities Division."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 1-7-150 OF THE 1976 CODE, RELATING TO THE ACCOUNTING OF THE ATTORNEY GENERAL TO THE STATE TREASURER, SO AS TO REQUIRE THAT ALL MONIES, EXCEPT CERTAIN COSTS AND MONIES DEPOSITED IN THE MITIGATION TRUST FUND FOR LOSSES OR DAMAGES TO NATURAL RESOURCES, AWARDED TO THE STATE OF SOUTH CAROLINA BY JUDGMENT OR SETTLEMENT IN ACTIONS OR CLAIMS BROUGHT BY THE ATTORNEY GENERAL ON BEHALF OF THE STATE OR ONE OF ITS AGENCIES OR DEPARTMENTS MUST BE DEPOSITED IN THE GENERAL FUND OF THE STATE.

A.    Section 1-7-150 of the 1976 Code is amended to read:

    "Section 1-7-150.    (A)    The Attorney General shall account to the State Treasurer for all fees, bills of costs, and monies received by him by virtue of his office.
    (B)    All monies, except investigative costs or costs of litigation awarded by court order or settlement, awarded the State of South Carolina by judgment or settlement in actions or claims brought by the Attorney General on behalf of the State or one of its agencies or departments must be deposited in the general fund of the State, except for monies recovered for losses or damages to natural resources, which must be deposited in the Mitigation Trust Fund, or where some other disposition is required by law."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 56-3-253 OF THE 1976 CODE, RELATING TO THE ESTABLISHMENT OF BIENNIAL REGISTRATION PERIODS FOR MOTOR VEHICLES, SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY SHALL NOT ISSUE A REFUND OF THE BIENNIAL REGISTRATION FEE TO A PERSON WHO HAS PAID THE FEE AND MOVES OUT OF THE STATE DURING THE BIENNIAL REGISTRATION PERIOD.

Section 56-3-253 of the 1976 Code, as added by Act 164 of 1993, is amended by adding at the end:

    "(C)    The department shall not issue a refund of the biennial registration fee to a person who has paid the fee and moves out of the State during the biennial registration period."

TO AMEND SECTION 42-7-65, AS AMENDED, OF THE 1976 CODE, RELATING TO WORKERS' COMPENSATION AND THE DESIGNATED AVERAGE WEEKLY WAGE FOR CERTAIN CATEGORIES OF EMPLOYEES, SO AS TO DELETE CERTAIN PROVISIONS AND PROVIDE THAT VOLUNTARY FIREMEN OF ORGANIZED VOLUNTEER FIRE UNITS AND MEMBERS OF ORGANIZED VOLUNTEER RESCUE SQUADS ARE COVERED UNDER TITLE 42 FOR WORKERS' COMPENSATION BY THE COUNTY GOVERNING BODY UNLESS THE GOVERNING BODY OF THE COUNTY OPTS OUT OF THIS COVERAGE.

A.    Section 42-7-65 of the 1976 Code, as last amended by Act 259 of 1996, is further amended to read:

    "Section 42-7-65.    Notwithstanding the provisions of Section 42-1-40, for the purpose of this title and while serving in this capacity, the total average weekly wage of the following categories of employees is the following:
    (1)    For all members of the State and National Guard, regardless of rank, seventy-five percent of the average weekly wage in the State for the preceding fiscal year, or the average weekly wage the service member would be entitled to, if any, if injured while performing his civilian employment, if the average weekly wage in his civilian employment is greater.
    (2)    For all voluntary firemen of organized voluntary rural fire units and voluntary municipal firemen, thirty-seven and one-half percent of the average weekly wage in the State for the preceding fiscal year.
    (3)    For all members of organized volunteer rescue squads, thirty-seven and one-half percent of the average weekly wage in the State for the preceding fiscal year.
    (4)    For all volunteer deputy sheriffs, thirty-seven and one-half percent of the average weekly wage in the State for the preceding fiscal year.
    The wages provided in items (2), (3), and (4) of this section may not be increased as a basis for any computation of benefits because of employment other than as a volunteer. Persons in the categories provided by items (2), (3), and (4) must be notified of the limitation on average weekly wages prescribed in this section by the authority responsible for obtaining coverage under this title.
    Volunteer firemen and rescue squad members are construed to mean members of organized units whose membership is certified to the municipal clerk or chairman of the council of the municipality or county in which their unit is based by the chief officer of the unit concerned. A volunteer deputy sheriff is a volunteer whose membership is certified by the sheriff to the governing body of the county. No volunteer deputy sheriff may be included under the provisions of this title unless approved by the governing body of the county or municipality. Notwithstanding any other provision of law, voluntary firemen of organized volunteer fire units and members of organized volunteer rescue squads are covered under this title by the county governing body unless the governing body of the county opts out of the coverage.
    The average weekly wage for inmates of the State Department of Corrections as defined in Section 42-1-480 is forty dollars a week. The average weekly wage for county prisoners is forty dollars a week. The average weekly wage for students of high schools, state technical schools, and state-supported colleges and universities while engaged in work study, marketing education, or apprentice programs on the premises of private companies or while engaged in the Tech Prep or other structured school to work programs on the premises of a sponsoring employer is fifty percent of the average weekly wage in the State for the preceding fiscal year."

B.    This section takes effect July 1, 1998.

TO AMEND SECTIONS 9-17-10, 9-17-30, AND 9-17-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE OPTIONAL RETIREMENT PROGRAM FOR FACULTY AND ADMINISTRATION OF PUBLICLY-SUPPORTED FOUR-YEAR AND POSTGRADUATE INSTITUTIONS OF HIGHER EDUCATION, SO AS TO EXTEND ELIGIBILITY FOR THIS PROGRAM TO FACULTY AND ADMINISTRATION OF TECHNICAL COLLEGES AND TO REVISE THE MANNER IN WHICH CONTRIBUTIONS ARE PAID FOR MEMBERS ELECTING THE OPTIONAL PROGRAM; AND TO AMEND SECTION 9-1-1710, AS AMENDED, RELATING TO LUMP SUM CONTRIBUTIONS AND CREDITABLE SERVICE FOR MEMBERS WITH OUT-OF-STATE SERVICE, SO AS TO AUTHORIZE MEMBERS IN CONTINUOUS EMPLOYMENT FOR TEN YEARS TO RECEIVE CREDITABLE SERVICE FOR ANY AMOUNT OF OUT-OF-STATE SERVICE RATHER THAN ONLY AWARDING CREDIT ON A ONE-FOR-ONE BASIS.

A.    Section 9-17-10 of the 1976 Code, as added by Act 42 of 1987, is amended to read:

    "Section 9-17-10.    There is established an optional retirement program for the publicly-supported four-year and postgraduate institutions of higher education and technical colleges. Only employees of participating institutions holding faculty and administrative positions are eligible to participate in the optional retirement program. No employee is eligible to participate in the optional retirement program unless he is eligible for membership in the South Carolina Retirement System. Retirement and death benefits must be provided for a participant in the optional retirement program through the purchase of an individual annuity contract, fixed or variable in nature, or a combination thereof. The State and the participant shall contribute toward the purchase of the contract which must be issued to, and become the property of, the participant. Eligibility is determined solely by the South Carolina Retirement System."

B.    Section 9-17-30 of the 1976 Code, as added by Act 42 of 1987, is amended to read:

    "Section 9-17-30.    Eligible employees employed by publicly-supported four-year and post-graduate institutions of higher education on or after July 1, 1987, shall elect either to join the South Carolina Retirement System or to participate in the optional retirement program under this chapter on or before December 1, 1987, or within ninety days after entry into service, whichever is later. Eligible employees employed by a publicly-supported technical college on or after July 1, 1998, shall elect either to join the South Carolina Retirement System or to participate in the optional retirement program under this chapter on or before December 1, 1998, or within ninety days after entry into service, whichever is later. The election must be made in writing and filed with the Retirement System and the appropriate officer of the employee's participating institution and is effective on the date of employment. If an eligible employee fails to make the election provided in this section, the member is considered to have elected membership in the South Carolina Retirement System."

C.    Section 9-17-40 of the 1976 Code, as amended by Act 171 of 1991, is further amended to read:

    "Section 9-17-40.    Each participant shall contribute monthly to the program the same amount which he would be required to contribute to the South Carolina Retirement System if he were a member of that system. Participant contributions may be made by payroll deduction, by a reduction in salary, or by employer pick up in accordance with any applicable provisions of the United States Internal Revenue Code. Each participating institution shall contribute on behalf of each participant the same amount it would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Each participating institution shall remit to the designated companies, for application to participants' contracts, an amount equal to the participant's contribution plus that percentage of each participating institution's contribution which would have been used to fund all Retirement System benefits for future service if the participants had been members of the Retirement System, but the participating institution's contribution may not be less than four and one-quarter percent of compensation. The participating institution shall remit the remainder of its required contribution to the Retirement System."

D.    Section 9-1-1710(2) of the 1976 Code, as last amended by Act 166 of 1993, is further amended to read:

    "(2)    A member may elect to become entitled to creditable service on account of his out-of-state service by making a special lump-sum contribution equal to twelve percent of his annual earnable compensation at the time of payment for each year of out-of-state service and a proportionate part thereof for a fraction of a year, provided that the earnable compensation used as a basis for the special lump-sum contribution must not be less than his earnable compensation in any one of the three preceding fiscal years. A member who elects to receive creditable service for out-of-state service may establish a portion of the service on a one-time basis except the balance may be established in accordance with Section 9-1-80. The out-of-state service must be matched on a one-for-one basis with in-state service. However, a member who has been in continuous covered employment for ten years may receive creditable service for any amount of out-of-state service. Out-of-state service may not exceed the total creditable service, exclusive of out-of-state service which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. A member who elects to receive creditable service for his out-of-state service shall establish credit for all service for which he is eligible, except that the service shall not exceed the total creditable service, exclusive of out-of-state service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. The contribution thereafter must be treated in the same way as the regular contributions required of a member hereunder."

TO AMEND ARTICLE 1, CHAPTER 11, TITLE 11 OF THE 1976 CODE, RELATING TO THE GENERAL PROVISIONS OF THE STATE BUDGET SYSTEM, BY ADDING SECTION 11-11-150 SO AS TO ESTABLISH A TRUST FUND FOR TAX RELIEF WITHIN THE STATE TREASURY; TO AMEND SECTION 11-11-330, AS AMENDED, AND SECTION 12-37-251, AS AMENDED, BOTH RELATING TO THE STATE PROPERTY TAX RELIEF FUND, SO AS TO REPLACE IT WITH THE TRUST FUND FOR TAX RELIEF; TO AMEND SECTIONS 12-37-450, AS AMENDED, 12-37-935, AND 12-37-270, ALL RELATING TO THE APPROPRIATION OF FUNDS FOR VARIOUS TAX RELIEF PURPOSES, SO AS TO REQUIRE THAT THOSE FUNDS BE CREDITED TO THE TRUST FUND FOR TAX RELIEF; TO AMEND SECTION 12-37-280, RELATING TO REIMBURSEMENT TO LOCAL POLITICAL SUBDIVISIONS FOR HOMESTEAD EXEMPTIONS, SO AS TO FUND THOSE REIMBURSEMENTS FROM THE TRUST FUND FOR TAX RELIEF; AND TO REPEAL SECTION 6-27-45 RELATING TO HOMESTEAD EXEMPTIONS REIMBURSEMENT.

A.    Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

    "Section 11-11-150.    (A)    In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
        (1)    Section 12-37-251 for the residential property tax exemption;
        (2)    Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
        (3)    Section 12-37-935(B) for manufacturer's additional depreciation; and
        (4)    Section 12-37-450 for the inventory tax exemption.
    (B)    There is established in the State Treasury the Trust Fund for Tax Relief (Trust Fund) which must be maintained separately from the general fund of the State and all other funds. The amounts deducted from state income tax revenues pursuant to subsection (A) are automatically credited to the Trust Fund for the applicable fiscal year. The Board of Economic Advisors shall account for the Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly.
    (C)    The tax as collected must be apportioned to the Trust Fund and to the General Fund in proportion to the reimbursement estimates of the Board of Economic Advisors, as required in subsection (A).
    (D)    An unexpended balance in the Trust Fund at the end of a fiscal year must remain in the Trust Fund.
    (E)    The provisions of this section must not be construed as affecting funding levels for public education.
    (F)    Earnings on the Trust Fund must be credited to the general fund of the State.
    (G)(1)    Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Trust Fund.
        (2)    Regardless of amounts transferred or appropriated to the Trust Fund for a fiscal year, there is appropriated to the Trust Fund from the general fund of the State any additional amounts necessary to pay the reimbursements due from the Trust Fund."

B.    Section 11-11-330 of the 1976 Code, as last amended by Section 33A, Part II, Act 458 of 1996, is further amended to read:

    "Section 11-11-330.    Funds credited to the 'Trust Fund for Tax Relief' must be used to provide property tax relief in the manner prescribed in Section 12-37-251. As provided in Section 11-11-150, there is transferred to the Trust Fund for each fiscal year an amount sufficient to reimburse sums equal to the amount of taxes that were not collected for school districts by reason of the exemption provided in Section 12-37-251."

C.    Section 12-37-251(A)(1) of the 1976 Code, as last amended by Act 106 of 1997, is further amended to read:

    "(1)    The Trust Fund for Tax Relief must contain an amount equal to the revenue necessary to fund a property tax exemption of one hundred thousand dollars based on the fair market value of property classified pursuant to Section 12-43-220(c) calculated on the school operating millage imposed for tax year 1995 or the current school operating millage, whichever is lower, excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction. The 1995 tax year school operating millage or the current school operating millage, whichever is lower, is the base year millage for purposes of calculating the amount necessary to fund the Trust Fund for Tax Relief in accordance with this section. However, in years in which the values resulting from a countywide reassessment and equalization program are implemented, the base year millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue shall prescribe. Funds distributed to a taxing district as provided in subsection (B) of this section must be used to provide a uniform property tax exemption for all property in the taxing district which is classified pursuant to Section 12-43-220(c), excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital construction."

D.    Section 12-37-450 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

    "Section 12-37-450.    Counties and municipalities must be reimbursed for the revenue lost as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually as provided in Section 11-11-150 to the Trust Fund for Tax Relief whatever amount is necessary to reimburse fully all counties and municipalities the required amount. The Comptroller General shall make remittances of this reimbursement to counties and municipalities in four equal payments.
    Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the 'index of taxpaying ability' pursuant to item (3) of Section 59-20-20.
    Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."

E.    Section 12-37-935(B) of the 1976 Code, as added by Section 8A, Part II, Act 458 of 1996, is amended to read:

    "(B)    Annually as provided in Section 11-11-150, there is credited to the Trust Fund for Tax Relief an amount sufficient to reimburse all local taxing entities the amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 12-37-270, mutatis mutandis."

F.    Section 12-37-270 of the 1976 Code is amended to read:

    "Section 12-37-270.    As provided in Section 11-11-150, there must be credited to the Trust Fund for Tax Relief in a fiscal year an amount sufficient to pay the reimbursement provided by this section. The Comptroller General, from the Trust Fund, annually shall pay to the county treasurer of the county in which the dwelling is situate for the account of each county, school district, or special district therein a sum equal to the amount of taxes that was not collected for such county, school district, or special district by reason of the exemption provided for in Section 12-37-250 and also annually shall pay to the governing body of the municipality in which the dwelling is situate a sum equal to the amount of taxes that was not collected for such municipality by reason of the exemption provided for in Section 12-37-250. The county treasurer and municipal governing body shall furnish the Comptroller General on or before April first following the tax year, or during an extension authorized by the Comptroller General not to exceed sixty days an accounting or statement as prescribed by the Comptroller General that reflects the amount of county, municipal, school district, or special district taxes that was not collected because of the exemption. Any funds paid by the Comptroller General as the result of an erroneous or improper application must be returned to the Comptroller General for deposit in the general fund of the State.
    Notwithstanding any other provisions of law, the Comptroller General shall purchase and distribute the applications for the homestead exemption and the costs must be from the Trust Fund.
    The Comptroller General shall promulgate regulations as necessary to carry out the provisions of this section."

G.    Section 12-37-280 of the 1976 Code is amended to read:

    "Section 12-37-280.    Any county, municipality, school district, and special district in which a person who has reached the age of sixty-five years receives a homestead property tax exemption must be reimbursed for the exemption from the Trust Fund for Tax Relief. The reimbursement must be made by the Comptroller General on an annual basis on the terms and subject to the conditions as he may prescribe.
    Nothing contained in this section may be construed as authority to grant property tax exemption other than as provided for by the laws and Constitution of this State."

H.    Section 6-27-45 of the 1976 Code is repealed.

I.    This section takes effect July 1, 1998.

TO AMEND SECTION 1-11-300 OF THE 1976 CODE, RELATING TO THE REQUIREMENTS THAT STATE AGENCIES DEVELOP AND IMPLEMENT UNIFORM COST ACCOUNTING AND REPORTING SYSTEMS IN REGARD TO MOTOR VEHICLES, SO AS TO FURTHER PROVIDE FOR THE CIRCUMSTANCES WHERE GASOLINE MAY BE PURCHASED FROM RETAIL FUEL OUTLETS AND STATE-OWNED FACILITIES.

Section 1-11-300 of the 1976 Code is amended to read:

    "Section 1-11-300.    In accordance with criteria established by the board, each agency shall develop and implement a uniform cost accounting and reporting system to ascertain the cost per mile of each motor vehicle used by the State under their control. Agencies presently operating under existing systems may continue to do so provided that board approval shall be required and that the existing systems shall be uniform with the criteria established by the board. All expenditures on a vehicle for gasoline and oil shall be purchased in one of the following ways:
    (1)    from state-owned facilities and paid for by the use of Universal State Credit Cards except where agencies purchase these products in bulk;
    (2)    from any fuel outlet where gasoline and oil are sold regardless of whether the outlet accepts a credit or charge card when the purchase is necessary or in the best interest of the State; and
    (3)    from a fuel outlet where gasoline and oil are sold when that outlet agrees to accept the Universal State Credit Card.
    These provisions regarding purchase of gasoline and oil and usability of the state credit card also apply to alternative transportation fuels where available. The Budget and Control Board Division of Operations shall adjust the appropriation in Part IA, Section 63B, for 'Operating Expenses - Lease Fleet' to reflect the dollar savings realized by these provisions and transfer such amount to other areas of the State Fleet Management Program. The Board shall promulgate regulations regarding the purchase of motor vehicle equipment and supplies to ensure that agencies within a reasonable distance are not duplicating maintenance services or purchasing equipment that is not in the best interest of the State. The Board shall develop a uniform method to be used by the agencies to determine the cost per mile for each vehicle operated by the State."

TO AMEND SECTION 12-36-2110, AS AMENDED, OF THE 1976 CODE, RELATING TO THE THREE HUNDRED DOLLAR MAXIMUM SALES TAX ON AIRCRAFT, MOTOR VEHICLES, MOTORCYCLES, BOATS, TRAILERS, RECREATIONAL VEHICLES, SELF-PROPELLED LIGHT CONSTRUCTION EQUIPMENT, AND CERTAIN OTHER ITEMS OF TANGIBLE PERSONAL PROPERTY, SO AS TO PROVIDE THAT EQUIPMENT PROVIDED, SUPPLIED, OR INSTALLED ON A FIREFIGHTING VEHICLE IS INCLUDED WITH THE VEHICLE FOR PURPOSES OF CALCULATING THE MAXIMUM TAX DUE.

A.    Section 12-36-2110 of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding an appropriately lettered subsection at the end to read:

    "( )    Equipment provided, supplied, or installed on a firefighting vehicle is included with the vehicle for purposes of calculating the maximum tax due under this section."

B.    The effect of this amendment is to clarify and express the intent of the General Assembly that the sales tax application of the sale of firefighting vehicles must include in the calculation of the maximum tax all equipment installed, provided, or supplied with the vehicle and included in the purchase price at the time of the sale of the vehicle, not including individual firefighter's protective clothing.

C.    This section takes effect June 29, 1999.

TO AMEND THE 1976 CODE BY ADDING SECTION 52-7-37 SO AS TO PROVIDE THAT NO TAX OR FEE MAY BE IMPOSED BY THE STATE ATHLETIC COMMISSION OR A COUNTY ATHLETIC COMMISSION ON THE GROSS RECEIPTS RECEIVED BY REASON OF THE LEASE OR SALE OF TELEVISION, MOTION PICTURE, OR RADIO RIGHTS IN CONNECTION WITH ANY BOXING, WRESTLING, KICK BOXING, FULL CONTACT KARATE, OR SPARRING EXHIBITION OR PERFORMANCE IN THIS STATE; AND TO REPEAL SECTION 52-7-37 JULY 30, 1999.

A.    The 1976 Code is amended by adding:

    "Section 52-7-37.    Notwithstanding any other provision of law, including applicable regulations, no tax or fee may be imposed by the State Athletic Commission or a county athletic commission on the gross receipts received by reason of the lease or sale of television, motion picture, or radio rights in connection with any boxing, wrestling, kick boxing, full contact karate, or sparring exhibition or performance in this State."

B.    This section is repealed July 30, 1999, unless otherwise extended by act or resolution of the General Assembly.

TO AMEND SECTIONS 1-25-60, AS AMENDED, 2-13-240, AS AMENDED, 2-15-120, AND 8-13-770 OF THE 1976 CODE, RELATING TO THE HUMAN SERVICES RESOURCE PROJECT, DISTRIBUTION OF THE CODE OF LAWS, CONFIDENTIALITY OF RECORDS, AND LEGISLATIVE MEMBERS OF BOARDS AND COMMISSIONS, SO AS TO DELETE REFERENCES TO THE STATE REORGANIZATION COMMISSION; AND TO REPEAL CHAPTERS 19, 20, AND 22 OF TITLE 1 RELATING TO THE ESTABLISHMENT OF THE STATE REORGANIZATION COMMISSION, REVIEW OF STATE AGENCIES AND BOARDS, AND THE COMPLIANCE REVIEW ACT OF 1988.

A.    Section 1-25-60(A)(2) of the 1976 Code, as last amended by Section 20, Act 181 of 1993, is further amended to read:

    "(2)    Reserved"

B.    Section 2-13-240(a) of the 1976 Code, as last amended by Act 34 of 1997, is further amended to read:

    "(a)    Sets of the Code of Laws of South Carolina, 1976, shall be distributed by the Legislative Council as follows: Governor, three; Lieutenant Governor, two; Secretary of State, three; Treasurer, one; Attorney General, fifty; Adjutant General, one; Comptroller General, two; Superintendent of Education, two; Commissioner of Agriculture, two; each member of the General Assembly, one; office of the Speaker of the House of Representatives, one; Clerk of the Senate, one; Clerk of the House of Representatives, one; each committee room of the General Assembly, one; each member of the Legislative Council, one; Code Commissioner, one; Legislative Council, ten; Supreme Court, fourteen; Court Administration Office, five; each circuit court judge, one; each circuit court solicitor, one; each family court judge, one; each county court judge, one; College of Charleston, one; The Citadel, two; Clemson University, three; Francis Marion College, one; Lander College, one; Medical University of South Carolina, two; South Carolina State College, two; University of South Carolina, four; each regional campus of the University of South Carolina, one; University of South Carolina Law School, forty-six; Winthrop College, two; each technical college or center, one; each county governing body, one; each county clerk of court and register of deeds where such offices are separate, one; each county auditor, one; each county coroner, one; each county magistrate, one; each county master in equity, one; each county probate judge, one; each county public library, one; each county sheriff, one; each public defender, one; each county superintendent of education, one; each county treasurer, one; Library of Congress, three; United States Supreme Court, one; each member of Congress from South Carolina, one; each state library which furnishes this State a free set of its Code of Laws, one; Division of Aeronautics of the Department of Commerce, one; Department of Alcohol and other Drug Abuse Services, one; Department of Archives and History, one; Board of Bank Control, one; Commissioner of Banking, one; Budget and Control Board (Auditor, six; General Services Division, six; Personnel Division, one; Research and Statistical Services Division, one; Retirement System, one); Children's Bureau, one; Department of Consumer Affairs, one; Department of Corrections, two; Criminal Justice Academy, one; Department of Commerce, five; Employment Security Commission, two; Ethics Commission, one; Forestry Commission, one; Department of Health and Environmental Control, five; Department of Transportation, five; Department of Public Safety, five; Human Affairs Commission, one; Workers' Compensation Commission, seven; Department of Insurance, two; Department of Juvenile Justice and Aftercare, one; Department of Labor, Licensing and Regulation, two; South Carolina Law Enforcement Division, four; Legislative Audit Council, one; State Library, three; Department of Mental Health, three; Department of Disabilities and Special Needs, five; Ports Authority, one; Department of Probation, Parole and Pardon, two; Public Service Commission, three; Department of Social Services, two; Department of Revenue, six; Board for Technical and Comprehensive Education, one; Veterans' Affairs Division of the Governor's office, one; Vocational Rehabilitation, one; Department of Natural Resources, four."

C.    Section 2-15-120 of the 1976 Code is amended to read:

    "Section 2-15-120.    All records of the Legislative Audit Council with the exception of its final audit reports provided for by Section 2-15-60 are confidential and not subject to public disclosure prior to the publication of the final audit report. The court in determining the extent to which any disclosure of all or any part of a council record is necessary shall impose appropriate safeguards against unauthorized disclosure.
    As used in this section, 'records' includes but is not limited to books, papers, maps, photographs, cards, tapes, recordings, or other documentary materials regardless of physical form or characteristics prepared, owned, used, in the possession of or retained by the Legislative Audit Council.
    Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars or imprisoned not more than one year. If the person convicted is an officer or employee of the State, he must be dismissed from office or employment and is ineligible to hold any public office in this State for a period of five years after the conviction."

D.    Section 8-13-770 of the 1976 Code, as added by Act 248 of 1991, is amended to read:

    "Section 8-13-770.    A member of the General Assembly may not serve in any capacity as a member of a state board or commission, except for the State Budget and Control Board, the Advisory Commission on Intergovernmental Relations, the Legislative Audit Council, the Legislative Council, the Legislative Information Systems, the Judicial Council, the Sentencing Guidelines Commission, the Commission on Prosecution Coordination, and the joint legislative committees."

E.    Chapters 19, 20, and 22 of Title 1 of the 1976 Code are repealed.

F.    This section takes effect July 1, 1998.

TO AMEND THE 1976 CODE BY ADDING SECTION 11-11-340 SO AS TO ESTABLISH IN THE STATE TREASURY THE STATE INSTITUTION BONDS AND STATE HIGHWAY BONDS DEBT SERVICE FUND, TO REQUIRE AMOUNTS TO BE CREDITED TO THIS FUND AMOUNTS SUFFICIENT TO PAY DEBT SERVICE ON STATE INSTITUTION BONDS AND STATE HIGHWAY BONDS, AND TO PROVIDE THAT AMOUNTS CREDITED TO THIS FUND ARE NOT CONSIDERED STATE GENERAL FUND REVENUES.

Article 3, Chapter 11, Title 11 of the 1976 Code is amended by adding:

    "Section 11-11-340.    There is established in the State Treasury the State Institution Bonds and State Highway Bonds Debt Service Fund which must be maintained separately from the general fund and other funds. Annually there must be credited to this account amounts sufficient for debt service payments on state institution bonds and state highway bonds. Amounts credited to this fund are not considered state general fund revenues."

TO AMEND THE 1976 CODE BY ADDING SECTION 12-10-35 SO AS TO PROVIDE A TEN-YEAR MORATORIUM ON STATE CORPORATE INCOME TAX FOR A CORPORATION THAT IS A "QUALIFYING BUSINESS" UNDER THE ENTERPRISE ZONE ACT OF 1995 IF THE BUSINESS HAS CREATED AT LEAST ONE HUNDRED NEW FULL-TIME JOBS IN A COUNTY IN WHICH THE AVERAGE ANNUAL UNEMPLOYMENT RATE FOR THE LAST TWO COMPLETED CALENDAR YEARS IS AT LEAST TWICE THE STATE AVERAGE AND AT LEAST NINETY PERCENT OF THE QUALIFYING BUSINESSES' INVESTMENT IN THIS STATE IS LOCATED IN SUCH A COUNTY, TO PROVIDE A MORATORIUM OF FIFTEEN YEARS IF AT LEAST TWO HUNDRED NEW FULL-TIME JOBS ARE ADDED, TO PROVIDE HOW THE MORATORIUM APPLIES, AND TO REPEAL THIS MORATORIUM PROVISION EFFECTIVE JULY 1, 2003.

A.    Chapter 10, Title 12 of the 1976 Code is amended by adding:

    "Section 12-10-35.    (A)    If a qualifying business creates at least one hundred new full-time jobs, as defined in Section 12-6-3360(F), in a county with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years and at least ninety percent of the qualifying businesses' investment in this State is in such a county, then the company is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the company's first ten taxable years beginning with the taxable year after it first qualifies. The moratorium applies to that portion of the company's corporate income tax that represents the ratio that the company's new investment is of its total investment in this State.
    (B)    If at least two hundred new full-time jobs are added, the moratorium period is fifteen taxable years."

B.    This section applies for taxable years beginning after 1997, and Section 12-10-35 of the 1976 Code as added by this section is repealed effective July 1, 2003. However, this repeal does not affect any moratorium then in effect on July 1, 2003.

TO AMEND SECTIONS 12-23-810 AND 12-23-815, BOTH AS AMENDED, OF THE 1976 CODE, RELATING TO THE LICENSE TAX ON HOSPITALS, SO AS TO DELETE PROVISIONS RELATING TO THE APPLICATION OF THE TAX TO A LICENSED HOSPITAL IN ANOTHER STATE WHICH DOES BUSINESS IN THIS STATE AND TO DELETE AN OBSOLETE REFERENCE APPLICABLE TO THE INFORMATION NEEDED TO ISSUE TAX ASSESSMENTS AND ASSIGN THE DUTY TO THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD; AND TO AMEND SECTION 44-6-155, AS AMENDED, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO DELETE VARIOUS USES OF THE MONIES IN THE FUND AND TO CORRECT AN OBSOLETE AGENCY REFERENCE.

A.    Section 12-23-810(B) of the 1976 Code, as added by Act 105 of 1991, is amended to read:

    "(B)    Reserved."

B.    Section 12-23-815 of the 1976 Code, as last amended by Section 155 of Act 181 of 1993, is further amended to read:

    "Section 12-23-815.    The Department of Revenue shall issue assessments for the tax provided by this article based on information provided by the Department of Health and Environmental Control and the Office of Research and Statistics of the State Budget and Control Board."

C.    Section 44-6-155(C) of the 1976 Code, as last amended by Act 105 of 1991, is further amended to read:

    "(C)    Monies in the fund must be used to:
        (1)    provide Medicaid coverage to pregnant women and infants with family incomes above one hundred percent but below one hundred eighty-five percent of the federal poverty guidelines;
        (2)    provide Medicaid coverage to children aged one through six with family income below federal poverty guidelines;
        (3)    provide Medicaid coverage to aged and disabled persons with family income below federal poverty guidelines;
        (4)    reserved;
        (5)    reserved;
        (6)    reserved;
        (7)    provide up to two hundred forty thousand dollars to reimburse the Office of Research and Statistics of the State Budget and Control Board and hospitals for the cost of collecting and reporting data pursuant to Section 44-6-170;
        (8)    reserved."

TO AMEND SECTION 44-7-2570, AS AMENDED, OF THE 1976 CODE, RELATING TO FEES FOR SERVICE UNDER THE INFANTS AND TODDLERS WITH DISABILITIES ACT, SO AS TO PROVIDE THAT FAMILIES MUST NOT BE CHARGED FEES FOR EARLY INTERVENTION SERVICES PROVIDED UNDER THE ACT.

Section 44-7-2570(A) of the 1976 Code, as added by Act 114 of 1989, is amended to read:

    "(A)    Families must not be charged for early intervention services provided pursuant to this article."

TO AMEND SECTION 50-3-180 OF THE 1976 CODE, RELATING TO THE MITIGATION TRUST FUND OF SOUTH CAROLINA, SO AS TO PROVIDE THAT FUNDS RECOVERED FOR LOSSES OR DAMAGES TO NATURAL RESOURCES MUST BE DEPOSITED IN THE FUND AND USED FIRST FOR RESTORATION IN THE AFFECTED AREAS AND THEN GENERALLY FOR SUCH RESTORATION.

A.    Section 50-3-180 of the 1976 Code, as added by Act 458 of 1996, is amended to read:

    "Section 50-3-180.    (A)    The Mitigation Trust Fund of South Carolina is credited for the purposes of receiving gifts, grants, contributions, and other proceeds for mitigation projects in the State. The Board of Trustees for the Mitigation Trust Fund is the chairman and the members of the South Carolina Department of Natural Resources Board with full authority over the administration of the funds deposited in the fund. The State Treasurer is the custodian of the fund and shall invest its assets in an interest-bearing account pursuant to South Carolina law.
    (B)    The Mitigation Trust Fund may receive appropriations of state general funds, federal funds, donations, gifts, bond issue receipts, securities, and other monetary instruments of value. Reimbursement for monies expended from this fund must be deposited in this fund. Funds received through sale, exchange, or otherwise, of products of the property including, but not limited to, timber and utility easement rights, accrue to the Mitigation Trust Fund. Funds recovered for losses or damages to natural resources must be deposited to the Mitigation Trust Fund to be used first for restoration in the areas affected and then as provided in subsection (C) of this section.
    (C)    The income received and accruing from the fund must be spent only for the acquisition, restoration, enhancement, or management of property for mitigation for adverse impacts to natural resources.
    (D)    The proceeds from this fund may be carried forward from year to year and do not revert to the general fund of the State."

B.    This section takes effect July 1, 1998.

TO PROVIDE THAT THE LEGISLATIVE COUNCIL SHALL DISTRIBUTE NINE SETS OF THE 1976 CODE TO THE ADMINISTRATIVE LAW JUDGE DIVISION, TO PROVIDE THAT THE CODE COMMISSIONER SHALL INCLUDE THE ADDITIONAL DISTRIBUTION IN THE REPRINTING OF SECTION 2-13-240 OF THE 1976 CODE FOR THE 1998 CUMULATIVE SUPPLEMENT, AND TO AUTHORIZE THE CODE COMMISSIONER TO REPRINT THE DISTRIBUTION LIST IN TABULAR FORM.

In addition to the sets of the 1976 Code distributed by the Legislative Council pursuant to Section 2-13-240(a) of the 1976 Code, there must be distributed nine sets to the Administrative Law Judge Division. The Code Commissioner shall include this additional distribution in Section 2-13-240(a) of the 1976 Code when it is reprinted for the 1998 cumulative supplement and he may reformat the subsection in tabular form.

TO AMEND SECTION 44-6-400, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS CONCERNING INTERMEDIATE SANCTIONS FOR THE MEDICAID CERTIFIED NURSING HOME ACT, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 44-6-420, AS AMENDED, RELATING TO SANCTIONS AGAINST NURSING HOMES FOR VIOLATIONS OF MEDICAID PROGRAM REQUIREMENTS, SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO COORDINATE ENFORCEMENT WITH THE FEDERAL AUTHORITIES FOR NURSING HOMES CERTIFIED UNDER BOTH MEDICARE AND MEDICAID AND TO TAKE ACTIONS COMMENSURATE WITH FEDERAL ACTIONS WHEN THE NURSING HOME IS ONLY CERTIFIED UNDER MEDICAID; TO AMEND SECTION 44-6-470, AS AMENDED, RELATING TO FINES FOR VIOLATIONS AND USE OF FINES COLLECTED, SO AS TO DELETE SPECIFIC FINE AMOUNTS AND FURTHER PROVIDE FOR THE USE OF CIVIL MONETARY PENALTIES COLLECTED; TO AMEND SECTION 44-6-540, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO PROMULGATE REGULATIONS, SO AS TO PROVIDE THAT SUCH REGULATIONS SHALL ENSURE COMPLIANCE WITH THE REQUIREMENTS FOR PARTICIPATION IN THE MEDICAID PROGRAM; AND TO REPEAL SECTIONS 44-6-410, 44-6-430, 44-6-440, 44-6-450, 44-6-460, 44-6-480, 44-6-490, 44-6-500, 44-6-510, AND 44-6-520 ALL RELATING TO SANCTIONS AND ENFORCEMENT PROCEDURES FOR VIOLATIONS OF MEDICAID PROGRAM REQUIREMENTS.

A.    Section 44-6-400 of the 1976 Code, as last amended by Section 1060 of Act 181 of 1993, is further amended to read:

    "Section 44-6-400.    As used in this article:
    (1)    'Department' means the Department of Health and Human Services.
    (2)    'Nursing home' means a facility subject to licensure as a nursing home by the Department of Health and Environmental Control and subject to the permit provisions of Article 2, Chapter 7 of Title 44 and which has been certified for participation in the Medicaid program or has been dually certified for participation in the Medicaid and Medicare programs.
    (3)    'Resident' means a person who resides or resided in a nursing home during a period of an alleged violation.
    (4)    'Survey agency' means the South Carolina Department of Health and Environmental Control or any other agency designated to conduct compliance surveys of nursing facilities participating in the Title XIX (Medicaid) program."

B.    Section 44-6-420 of the 1976 Code, as last amended by Section 1062 of Act 181 of 1993, is further amended to read:

    "Section 44-6-420.    When the department is notified by the survey agency that a nursing home is in violation of one or more of the requirements for participation in the Medicaid program, it may take enforcement action as follows:
    (1)    if the nursing home is dually certified for participation in both the Medicare and Medicaid programs, the department shall coordinate any enforcement action with federal authorities and shall defer to the actions of these federal authorities to the extent required by federal statute or regulation;
    (2)    if the nursing home is only certified for participation in the Medicaid program and is not certified for participation in the Medicare program, the department may take any enforcement action authorized under federal statute or regulation that would have been available for use by federal authorities if the nursing home had been dually certified;
    Any enforcement actions taken solely by the department under item (2) must be proportionate to the scope and severity of the violations and also shall take into account the factors considered by federal authorities in similar enforcement actions. Dually certified nursing homes and nursing homes only certified for participation in the Medicaid program must be subjected to comparable enforcement actions for comparable violations."

C.    Section 44-6-470 of the 1976 Code, as last amended by Section 1066 of Act 181 of 1993, is further amended to read:

    "Section 44-6-470.    Any use of funds collected by the department as a result of the imposition of civil monetary penalties or other enforcement actions must be for a purpose related to the protection of the health and property of residents of nursing homes that participate in the Medicaid program. These funds may be used for the cost of relocating residents to other nursing homes, if necessary, and also may be used to reimburse residents for personal funds lost as a result of violations of the requirements for participation in the Medicaid program by the nursing home. In addition, these funds may be used for other costs directly associated with enforcement or corrective measures at facilities found to be out of compliance with the requirements for participation in the Medicaid program or for any other purpose that enhances or improves the health and quality of life for residents. These requirements for the use of funds collected also apply to funds received by the department that are collected as the result of enforcement actions directed by federal authorities."

D.    Section 44-6-540 of the 1976 Code, as added by Act 449 of 1990, is amended to read:

    "Section 44-6-540.    The department is authorized to promulgate regulations, pursuant to the Administrative Procedures Act, to administer this article, and to ensure compliance with the requirements for participation in the Medicaid program."

E.    Sections 44-6-410, 44-6-430, 44-6-440, 44-6-450, 44-6-460, 44-6-480, 44-6-490, 44-6-500, 44-6-510, and 44-6-520 of the 1976 Code are repealed.

TO AMEND THE 1976 CODE BY ADDING SECTION 44-7-262 SO AS TO ESTABLISH MINIMUM PATIENT-STAFF RATIOS FOR STAFF PROVIDING NURSING CARE IN NURSING HOMES AND MAKING THOSE MINIMUM STAFFING RATIOS A CONDITION OF LICENSURE.

A.    The 1976 Code is amended by adding:

    "Section 44-7-262.    (A)    As a condition of licensure, in addition to the number of licensed nursing personnel required by R61-17, or any other regulation, a nursing home must provide at a minimum these resident-staff ratios for staff who provide nursing care:
        (1)    9 to 1 for shift 1;
        (2)    13 to 1 for shift 2;
        (3)    22 to 1 for shift 3.
    In those facilities utilizing two twelve-hour shifts, the staffing ratios for shift one apply to the twelve-hour shift occurring primarily during the day, and the staffing ratios for shift three apply to the twelve-hour shift occurring primarily during the night.
    (B)    For purposes of this section:
        (1)    'Shift 1' means a work shift that occurs primarily during the daytime hours including, but not limited to, a 7:00 a.m. to 3:00 p.m. shift;
        (2)    'Shift 2' means a work shift that generally includes both daytime and evening hours including, but not limited to, a 3:00 p.m. to 11:00 p.m. shift;
        (3)    'Shift 3' means a work shift that occurs primarily during the nighttime hours including, but not limited to, an 11:00 p.m. to 7:00 a.m. shift."

B.    This section takes effect January 1, 1999.

TO AMEND TITLE 44 OF THE 1976 CODE, RELATING TO HEALTH, BY ADDING CHAPTER 122 SO AS TO CREATE THE COUNTY GRANTS FUND PROGRAM FOR ADOLESCENT PREGNANCY PREVENTION INITIATIVES; TO PROVIDE FOR THE ADMINISTRATION AND DISTRIBUTION OF MONIES APPROPRIATED TO THE GRANTS FUND; AND TO REQUIRE REGULAR EVALUATIONS OF PROJECTS RECEIVING MONIES FROM THE GRANTS FUND.

A.    Title 44 of the 1976 Code is amended by adding:

    Section 44-122-10.    As used in this chapter:
    (1)    'Adolescent' means an individual nineteen years of age and under.
    (2)    'Contractor' means a public or private agency or organization receiving money from the fund.
    (3)    'County government' means the governing body of a county or the organization or agency in a county that has been designated pursuant to Section 44-122-30(C) to assume the duties and responsibilities assigned to county governments.
    (4)    'Department' means the South Carolina Department of Social Services.
    (5)    'Initiative' means a local program or project funded by a county pursuant to this chapter.
    (6)    'Short term outcomes' means the intermediate results that a particular adolescent pregnancy prevention intervention is likely to produce including, but not limited to, increased knowledge, behavior change, or delays or reductions in sexual activity.
    (7)    'Long term outcome' means the measurable reduction in the rate of adolescent pregnancy for a specific target population or defined geographic area.
    (8)    'Primary pregnancy prevention' means prevention of first pregnancy.
    (9)    'Fund' means the County Grants Fund for Adolescent Pregnancy Prevention Initiatives created by this chapter.

    Section 44-122-20.    (A)    There is established the County Grants Fund for Adolescent Pregnancy Prevention Initiatives. The fund must be administered by the department and county governments as provided in this chapter. The purpose of the fund is to support local efforts to prevent early sexual activity and to measurably reduce the rate of adolescent pregnancy in each county and in the State and to ensure that these efforts reflect local community values.
    (B)    Any program components funded by federal Temporary Assistance for Needy Families (TANF) dollars are subject to TANF reporting requirements and federal fiscal accountability requirements. The department shall amend the South Carolina Temporary Assistance for Needy Families (TANF) Block Grant State Plan as required by federal law to govern expenditures of federal TANF dollars.

    Section 44-122-30.    (A)    Ten percent of the money appropriated annually to the fund by the General Assembly is to be used by the department to evaluate the effectiveness of each initiative and the fund as specified in Section 44-122-60. The remaining money must be distributed by the department to each county government in the following manner:
        (1)    fifteen percent of the money appropriated must be allocated evenly among all counties;
        (2)    fifteen percent of the money appropriated must be allocated to counties based on the size of their adolescent population;
        (3)    twenty percent of the money appropriated must be allocated to counties based on their rate of adolescent pregnancy;
        (4)    forty percent of the funds appropriated must be allocated to counties based on their number of adolescent pregnancies.
    A county government may retain up to five percent of the money it receives to cover the actual costs of administering the fund. All other funds must be allocated for initiatives mainly focused on primary pregnancy prevention. Money must be allocated by the county within two years of receipt.
    (B)    Money appropriated to the fund must not be used for:
        (1)    purchase of inpatient care;
        (2)    purchase or improvement of land;
        (3)    purchase, construction, or permanent improvement of any building or other facility;
        (4)    purchase of major equipment;
        (5)    transportation to or from abortion services;
        (6)    abortions; or
        (7)    provision of anything of monetary value to a participant in a local project or initiative; counseling and guidance may be provided as well as any service of nonmonetary value.
    (C)    If the governing body of a county chooses not to assume the responsibilities and duties assigned to county governments by this chapter:
        (1)    the governing body may designate an agency or organization to assume those responsibilities and duties; or
        (2)    in the absence of designation by the governing body, the department may designate another agency or organization within the county to assume those responsibilities and duties.
    If a county government uses money it receives pursuant to subsection (A) in a manner not expressly authorized by this chapter, the department may designate another agency or organization within the county to assume those responsibilities and duties.

    Section 44-122-40.    (A)    A local public or private agency or organization or combination of these agencies and organizations may apply to the county government for an allocation of funds to operate an adolescent pregnancy prevention initiative. All initiatives funded by the county government pursuant to this chapter shall emphasize premarital sexual abstinence and male responsibility. All applications must meet the following minimum standards for consideration:
        (1)    Each initiative must have a plan of action for prevention of adolescent pregnancy that extends for at least five years. The proposal must include convincing evidence of a direct link between project activities and the reduction of adolescent pregnancy in the target population.
        (2)    Each initiative must have realistic, specific, and measurable goals, objectives, timelines, and budget for the prevention of adolescent pregnancy.
        (3)    The proposal must include a description of the method for collecting and reporting the data required by the department to evaluate the effectiveness of the initiative as specified in Section 44-122-60. Each initiative, before submitting its proposal, must send a representative to the evaluation standards workshop sponsored by the department.
    (B)    Continuation of funding for a local teen pregnancy prevention initiative is contingent upon:
        (1)    successful evaluation of the effectiveness of the contractor's performance in achieving its short term outcomes within the first two years of receiving money and in achieving the fund's long term outcome by the end of the third year of receiving money; and
        (2)    the contractor updating information concerning the nature of the problem in its target population, available resources, and potential barriers to success, with appropriate changes in the initiative's goals, objectives, timelines, and budget.

    Section 44-122-50.    (A)    The Department of Social Services shall:
        (1)    monitor the statewide administration of the fund;
        (2)    evaluate the success of the initiatives funded under this chapter, as required by Section 44-122-60;
        (3)    analyze all available information and report to the Governor and the General Assembly on the effectiveness of the fund in measurably reducing the rate of adolescent pregnancy in the State. These reports must be made annually, with the first report due three years after the first distribution of funds pursuant to Section 44-122-30(A); and
        (4)    provide to each county government specific criteria required by this chapter.
    (B)    County governments shall:
        (1)    oversee and administer funds distributed to the county pursuant to Section 44-122-30(A);
        (2)    choose from among the applicants that meet the minimum standards;
        (3)    develop additional criteria, as necessary, to meet specific local needs; and
        (4)    monitor contractors' progress in meeting stated goals, objectives, and timelines.
    (C)    Contractors shall:
        (1)    comply with reporting, contracting, and evaluation requirements of the county government and the department;
        (2)    define and maintain cooperative ties with other community institutions;
        (3)    coordinate and collaborate with other community entities that have an interest in positive youth development and adolescent risk behavior reduction;
        (4)    obtain approval from the county government before making changes in program goals, objectives, and target populations; and
        (5)    before the beginning of each fiscal year, submit to the county government for approval a budget of planned expenditures, and at the end of each fiscal year, render an accounting of expenditures to the county government.
    (D)    The Department of Health and Environmental Control shall:
        (1)    provide technical assistance and training to county governments and contractors, as needed, related to adolescent pregnancy prevention issues; and
        (2)    if a community health assessment has been conducted in a county, share information with county governments, contractors, and program applicants about the nature of the problem, available resources, and potential barriers to the development of teen pregnancy prevention projects and activities.

    Section 44-122-60.    An evaluation must be conducted by a firm or individual external to the department, on a schedule to be determined by the department and must assess the effectiveness of each initiative in meeting its short and long term outcomes. Evaluation standards must be consistent across all initiatives. The evaluation also must assess the effectiveness of each county government's efforts in measurably reducing the rate of adolescent pregnancy for the county. These efforts include administration of the fund and selection and oversight of contractors."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 12-6-1140, AS AMENDED, AND SECTION 12-6-1170, OF THE 1976 CODE, RELATING TO THE RETIREMENT INCOME DEDUCTION ELECTION AND THE TAXABLE INCOME EXCLUSION ALLOWED PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ELIMINATE THE ELECTION AND ALLOW AN ANNUAL DEDUCTION OF UP TO THREE THOUSAND DOLLARS OF RETIREMENT INCOME AND UP TO TEN THOUSAND DOLLARS OF RETIREMENT INCOME BEGINNING IN THE TAXABLE YEAR THE TAXPAYER ATTAINS AGE SIXTY-FIVE, AND TO ALLOW AN ANNUAL DEDUCTION OF ELEVEN THOUSAND FIVE HUNDRED DOLLARS OF SOUTH CAROLINA TAXABLE INCOME BEGINNING IN THE TAXABLE YEAR THE TAXPAYER ATTAINS THE AGE OF SIXTY-FIVE YEARS REDUCED BY THE RETIREMENT INCOME DEDUCTION, TO PROVIDE FOR CLAIMING THIS DEDUCTION ON JOINT RETURNS, TO DELETE PROVISIONS RELATING TO THE POSTPONEMENT OF THE MAXIMUM DEDUCTION UNDER THE PRIOR LAW, AND TO EXTEND THE PERIOD FOR FILING A TIMELY CLAIM FOR REFUND FOR THE 1994 TAXABLE YEAR THROUGH APRIL 15, 1999, FOR TAXPAYERS WHOSE CLAIM IS BASED ON NOT HAVING MADE THE IRREVOCABLE ELECTION RELATING TO THE RETIREMENT INCOME DEDUCTION; TO AMEND SECTION 12-14-40, RELATING TO THE DESIGNATION OF AN ECONOMIC IMPACT ZONE, SO AS TO DELETE THE FIFTEEN-YEAR "SUNSET" ON SUCH ZONES; AND TO AMEND SECTION 12-14-60, AS AMENDED, RELATING TO THE STATE INCOME TAX INVESTMENT CREDIT ALLOWED FOR CERTAIN INVESTMENTS IN ECONOMIC IMPACT ZONES, SO AS TO DELETE THE FIVE PERCENT CREDIT AND REPLACE IT WITH A GRADUATED PERCENTAGE FROM ONE TO FIVE PERCENT BASED ON THE INVESTMENT'S USEFUL LIFE AND TO LIMIT THE TOTAL CREDIT ALLOWED A UTILITY FOR INVESTMENTS MADE AFTER JUNE 30, 1998, TO ONE MILLION DOLLARS, LIMIT ALL CREDITS FOR INVESTMENTS MADE BEFORE JULY 1, 1998, TO NO MORE THAN FIFTY PERCENT OF THE TAX LIABILITY, AND TO MAKE OTHER TECHNICAL CHANGES.

I.A.    (1)    Section 12-6-1140(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

        "(3)    a deduction as provided in Section 12-6-1170;"

    (2)    Section 12-6-1140 of the 1976 Code, as last amended by Section 2, Part II of Act 155 of 1997, is further amended by deleting item (9) which reads:

        "(9)    South Carolina taxable income received by a resident individual taxpayer who before or during the applicable taxable year has attained the age of sixty-five. If a married taxpayer eligible for this deduction files a joint federal income tax return with a spouse who is not eligible for this deduction, then their joint income must be allocated between them on a pro-rata basis in the manner the department shall provide."

B.    Section 12-6-1170 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

    "Section 12-6-1170.    (A)(1)    An individual is allowed an annual deduction from South Carolina taxable income of not more than three thousand dollars of retirement income received. Beginning in the year in which the taxpayer reaches age sixty-five, the taxpayer may deduct not more than ten thousand dollars of retirement income that is included in South Carolina taxable income.
        (2)    The term 'retirement income', as used in this subsection, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governments, including military retirement.
        (3)    A surviving spouse receiving retirement income that is attributable to the deceased spouse shall apply this deduction in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed.
        (4)    The department may require the taxpayer to provide information necessary for proper administration of this subsection.
    (B)    Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, the resident individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed eleven thousand five hundred dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) not including amounts deducted as a surviving spouse. If married taxpayers eligible for this deduction file a joint federal income tax return, then the maximum deduction allowed is eleven thousand five hundred dollars in the case when only one spouse has attained the age of sixty-five years and twenty-three thousand dollars when both spouses have attained such age."

C.    Notwithstanding the provisions of Section 12-54-85(F) of the 1976 Code relating to the timeliness of claims for refund, for taxable year 1994 only, the period within which such claims are timely filed is extended through April 15, 1999, for taxpayers filing a claim based on their not having made the irrevocable election provided under Section 12-6-1170 of the 1976 Code prior to its amendment by this section.

D.    This part is effective for taxable years beginning after 1997.

II.A.    Section 12-14-40 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

    "Section 12-14-40.    (A)    The designation of an area as an economic impact zone must be made by the State Budget and Control Board.
    (B)    A designation may be revoked by the General Assembly only after a hearing on the record in which officials of the county or municipality involved may participate."

B.    Section 12-14-60 of the 1976 Code, as amended by Act 151 of 1997, is further amended to read:

    "Section 12-14-60.    (A)(1)    There is allowed an economic impact zone investment tax credit against the tax imposed pursuant to Chapter 6 of this title for any taxable year in which the taxpayer places in service economic impact zone qualified manufacturing and productive equipment property.
        (2)    The amount of the credit allowed by this section is equal to the aggregate of:

	three-year property		one percent of total aggregate bases for all three-year property that qualifies;
	five-year property		two percent of total aggregate bases for all five-year property that qualifies;
	seven-year property		three percent of total aggregate bases for all seven-year property that qualifies;
	ten-year property		four percent of total aggregate bases for all ten-year property that qualifies;
	fifteen-year property		five percent of total aggregate bases for all or greater fifteen-year or greater property that qualifies

    For purposes of this section, whether property is three-year property, five-year property, seven-year property, ten-year property, or fifteen-year property is determined based on the applicable recovery period for such property under Section 168(e) of the Internal Revenue Code.
    (B)    For purposes of this section:
        (1)    'Economic impact zone qualified manufacturing and productive equipment property' means any property:
            (a)    which is used as an integral part of manufacturing or production, or used as an integral part of extraction of or furnishing transportation, communications, electrical energy, gas, water, or sewage disposal services in the economic impact zone;
            (b)    which is tangible property to which Section 168 of the Internal Revenue Code applies;
            (c)    which is Section 1245 property (as defined in Section 1245(a)(3)of the Internal Revenue Code); and
            (d)(i)    the construction, reconstruction, or erection of which is completed by the taxpayer in the economic impact zone; or
                (ii)    which is acquired by the taxpayer if the original use of such property commences with the taxpayer inside the economic impact zone.
        (2)    In the case of any computer software which is used to control or monitor a manufacturing or production process inside the economic impact zone and with respect to which depreciation (or amortization in lieu of depreciation) is allowable, the software must be treated as qualified manufacturing and productive equipment property.
    (C)    This section does not apply to any property to which the other tax credits would apply unless the taxpayer elects to waive the application of the other credits to the property.
    (D)    Unused credit allowed pursuant to this section may be carried forward for ten years from the close of the tax year in which the credit was earned.
    (E)    If during any taxable year and before the end of applicable recovery period for such property as determined under Section 168(e) of the Internal Revenue Code, the taxpayer disposes of or removes from the economic impact zone, economic impact zone qualified manufacturing and productive equipment property, then the tax due under Chapter 6 by the taxpayer for the current taxable year must be increased by the full amount of any credit claimed in prior years with respect to such property.
    (F)    For South Carolina income tax purposes, the basis of the economic impact zone qualified manufacturing and productive equipment property must be reduced by the amount of any credit claimed with respect to the property. If a taxpayer is required to recapture the economic impact zone investment tax credit in accordance with subsection (E), the taxpayer may increase the basis of the property by the amount of any basis reduction attributable with claiming the economic impact zone investment tax credit in prior years. The basis must be increased in the year in which the credit is recaptured.
    (G)    The credit allowed by this section for investments made after June 30, 1998, is limited to no more than one million dollars for any entity subject to the license tax as provided in Section 12-20-100.
    (H)    Credits claimed under this section for taxable years beginning after 1997 for investments made before July 1, 1998, may not reduce a taxpayer's state income tax liability by more than fifty percent."

C.    This part is effective for any qualifying investments made after June 30, 1998. However, Section 12-14-60(H) of the 1976 Code, as added by this part, is effective as provided in the text of that subsection.

TO AMEND SECTION 9-8-60, AS AMENDED, OF THE 1976 CODE, RELATING TO RETIREMENT UNDER THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO REDUCE FROM TEN YEARS TO EIGHT YEARS THE VESTING REQUIREMENT FOR SOLICITORS; AND TO AMEND SECTION 9-11-90, AS AMENDED, RELATING TO RESTORATION TO ACTIVE SERVICE OF RETIRED MEMBERS OF THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THE REQUIREMENTS FOR PARTICIPATION IN THE SYSTEM WHEN THE RESTORATION TO ACTIVE SERVICE IS BY VIRTUE OF ELECTION AS SHERIFF.

A.    The first paragraph of subsection (1) of Section 9-8-60 of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

    "A member of the system may retire upon written application to the board setting forth at what time, not later than his attaining age seventy-two and not more than ninety days prior nor more than six months subsequent to the execution and filing thereof, the member desires to be retired, if the member at the time so specified for retirement is no longer in the service of the State, except as a member of the General Assembly, and has completed ten years of credited service as a judge or eight years of credited service as a solicitor or was in service as a judge or solicitor on July 1, 1984, and has either attained the age of sixty-five and completed at least twenty years of credited service, or attained age seventy and completed at least fifteen years of credited service, or attained age sixty-five with at least four years' service in the position and has at least twenty-five years' other service with the State, or completed at least twenty-five years of credited service regardless of age. A solicitor is eligible to retire upon completion of twenty-four years of credited service regardless of age. A person is not eligible to receive a retirement allowance under this system while under employment covered by the South Carolina Retirement System, and the South Carolina Police Officers Retirement System."

B.    Section 9-11-90 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding:

    "(5)    Notwithstanding the provisions of subsection (3), a retired member who has been restored to active employment by virtue of election to the office of sheriff is restored as a member of the system upon taking office and electing to cease receiving a retirement allowance. Credited service to which the sheriff was entitled when he retired is restored to the sheriff and upon subsequent retirement the allowance must be based on the sheriff's compensation and credited service before and after the period of prior retirement. The allowance must not be less than the amount of his allowance previously payable plus any increases which would have been payable under Section 9-11-310 had he not been restored to service."

C.    Subsection A takes effect July 1, 1998. Subsection B takes effect upon approval by the Governor but applies only with respect to service credit earned pursuant to active service as a sheriff on and after that date.

TO AMEND SECTION 12-56-20, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE SETOFF DEBT COLLECTION ACT WHICH ALLOWS THE DEPARTMENT OF REVENUE TO SET OFF TAX REFUNDS AGAINST CERTAIN DEBTS OR DELINQUENT ACCOUNTS, SO AS TO INCLUDE THE SOUTH CAROLINA STUDENT LOAN CORPORATION WITHIN THE DEFINITION OF A "CLAIMANT AGENCY".

A.    Section 12-56-20(1) of the 1976 Code, as last amended by Act 347 of 1996, is further amended to read:

    "(1)    'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other political subdivisions."

B.    This section takes effect upon approval by the Governor.

TO AMEND SECTION 59-107-90, AS AMENDED, OF THE 1976 CODE, RELATING TO THE MAXIMUM AMOUNT OF OUTSTANDING STATE INSTITUTION BONDS, SO AS TO INCREASE THE MAXIMUM AMOUNT OF SUCH BONDS.

Section 59-107-90 of the 1976 Code, as last amended by Section 109, Part II, Act 145 of 1995, is further amended to read:

    "Section 59-107-90.    Notwithstanding any other provision of this chapter, there must not be outstanding at any given time state institution bonds for all institutions in excess of one hundred twenty million dollars except that in computing this debt limitation, all bonds defeased pursuant to Section 59-107-200 must be deducted from the aggregate of state institution bonds outstanding at the time."

TO AMEND SECTION 59-118-30 OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA ACADEMIC ENDOWMENT INCENTIVE ACT OF 1997, SO AS TO EXTEND ELIGIBILITY FOR THE INCENTIVE TO TECHNICAL COLLEGES.

A.    Section 59-118-30(1) of the 1976 Code, as added by Section 21A, Part II, Act 155 of 1997, is amended to read:

    "(1)    'Qualifying college or university' means a state-supported, post-secondary, four-year educational institution offering undergraduate, master, or doctoral degree programs and also includes a technical college under the jurisdiction of the State Board for Technical and Comprehensive Education."

B.    This section takes effect July 1, 1998.

TO AMEND SECTION 12-43-220, AS AMENDED, OF THE 1976 CODE, RELATING TO PROPERTY TAX CLASSIFICATIONS AND ASSESSMENT RATIOS, SO AS TO PROVIDE THAT IF A CHANGE IN OWNERSHIP OF OWNER-OCCUPIED RESIDENTIAL PROPERTY OCCURS, AND THE NEW OWNER DOES NOT QUALIFY FOR THE FOUR PERCENT OWNER-OCCUPIED RESIDENTIAL PROPERTY ASSESSMENT RATIO, THE SIX PERCENT ASSESSMENT RATIO SHALL APPLY TO THE PROPERTY ONLY FOR THE PORTION OF THE PROPERTY TAX YEAR IN WHICH THE PROPERTY IS OWNED BY THE NEW OWNER; TO EXTEND THE TIME BY WHICH A WRITTEN NOTICE OF OBJECTION TO AN ASSESSMENT RATIO MUST BE FILED FOR THE 1997 TAX YEAR; AND TO REQUIRE THE DEPARTMENT OF REVENUE TO PUBLICIZE THE EXTENSION AND TO NOTIFY THE ASSESSOR AND AUDITOR OF THIS EXTENSION.

A.    Section 12-43-220(c)(2)(vi) of the 1976 Code, as added by Act 431 of 1996, is amended to read:

    "(vi)    No further applications are necessary from the current owner while the property for which the initial application was made continues to meet the eligibility requirements. If a change in ownership occurs, another application is required. The owner shall notify the assessor of any change in classification within six months of the change. If a change in ownership occurs and the new owner does not qualify for the four percent assessment ratio, the six percent assessment ratio shall apply to the property only for the portion of the tax year in which the property is owned by the new owner. For the portion of the tax year in which the person qualifying for the four percent assessment ratio owned the property, the four percent assessment ratio shall apply."

B.    (A)    For purposes of Article 9, Chapter 60, Title 12 of the 1976 Code, the time by which the written notice of objection to the assessment ratio used for the assessment of property taxes for the 1997 tax year is hereby extended until a period ending forty days after the effective date of this section for a taxpayer who paid taxes for the 1997 property tax year at the six percent assessment ratio on property which qualified for the four percent assessment ratio on December 31, 1996, but which lost its status as the current owner's residence because of a change in ownership.
    (B)    The Department of Revenue shall place a notice in newspapers of general circulation in this State notifying taxpayers of the provisions of this subsection. The department also shall provide written notification to each county assessor and county auditor.

TO AMEND SECTIONS 12-36-2120, AS AMENDED, 27-32-170, AND 27-32-250, AS AMENDED, OF THE 1976 CODE, RELATING TO EXEMPTIONS FROM SALES TAX OF THE SALE OF A VACATION TIME SHARING PLAN AND A VACATION MULTIPLE OWNERSHIP INTEREST, SO AS TO EXEMPT FROM SALES TAX THE SALE OR RESALE OR THE EXCHANGE OF AN INTEREST IN A VACATION TIME SHARING PLAN AND A VACATION MULTIPLE OWNERSHIP INTEREST; AND TO AMEND SECTION 12-43-230, AS AMENDED, RELATING TO CLASSIFICATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO DELETE THE PROHIBITION ON INCLUDING A GOLF COURSE AS HOMEOWNER PROPERTY AND ALLOW THE ASSOCIATION TO DESIGNATE THOSE TRACTS OR PARCELS IT OWNS ON ITS APPLICATION FOR THE SPECIAL VALUATION ALLOWED HOMEOWNER'S ASSOCIATION PROPERTY.

A.    Section 12-36-2120(31) of the 1976 Code is amended to read:

    "(31)    vacation time sharing plans, vacation multiple ownership interests, and exchanges of interests in vacation time sharing plans and vacation multiple ownership interests as provided by Chapter 32 of Title 27, and any other exchange of accommodations in which the accommodations to be exchanged are the primary consideration;"

B.    Section 27-32-170 of the 1976 Code is amended to read:

    "Section 27-32-170.    The gross proceeds from the sale or resale of a vacation time sharing plan and the exchange of an interest in a vacation time sharing plan are exempt from sales tax imposed by Chapter 36 of Title 12 pursuant to the provisions of Section 12-36-2120."

C.    Section 27-32-250(2) of the 1976 Code is amended to read:

    "(2)    The sale or resale of any vacation multiple ownership interest and the exchange of an interest in a vacation multiple ownership interest is exempt from sales tax imposed by Chapter 36 of Title 12 pursuant to the provisions of Section 12-36-2120."

D.    Section 12-43-230(d) of the 1976 Code, as added by Act 403 of 1996, is amended to read:

    "(d)    For purposes of this article, 'homeowners' association property' means real and personal property owned by a homeowners' association if:
        (1)    property owned by the homeowners' association is held for the use, benefit, and enjoyment of members of the homeowners' association;
        (2)    each member of the homeowners' association has an irrevocable right to use and enjoy on an equal basis, property owned by the homeowners' association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, or bylaws of the homeowners' association; and
        (3)    each irrevocable right to use and enjoy property owned by the homeowners' association is appurtenant to taxable real property owned by a member of the homeowners' association.
    Subject to making the appropriate application pursuant to this subsection, a homeowners' association may designate one or any number of its qualifying tracts or parcels as homeowners' association property for purposes of the special valuation contained in Section 12-43-227.
    As used in this subsection, 'homeowners' association' means an organization which is organized and operated to provide for the acquisition, construction, management, and maintenance of property.
    Homeowners' association property does not come within the provisions of this subsection unless the owners of the real property or their agents make a written application for it on or before the first penalty date for taxes due for the first tax year in which the special valuation is claimed. The application may be with respect to one or any number of tracts or parcels owned by the homeowners' association. The application for the special valuation must be made to the assessor of the county in which the special valuation property is located, on forms provided by the county and approved by the department which includes the reporting of nonqualified gross receipts, and failure to apply constitutes a waiver of the special valuation for that year. No additional annual filing is required while the property remains homeowners' association property and the ownership remains the same, unless the nonqualified gross receipts within the meaning of Section 12-43-227 for the most recent completed tax year either (i) exceed the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application by ten percent or more or (ii) are less than ninety percent of the amount of nonqualified gross receipts with respect to the property reported on the most recently filed application. In that case, the owners of the real property or their agents must make additional written application with respect to the property and report the change in nonqualified gross receipts."

E.    Subsections A, B, and C of this section take effect July 1, 1998. Subsection D of this section applies to property tax years beginning after 1997.

TO AMEND SECTION 12-8-520 OF THE 1976 CODE, RELATING TO INCOMES SUBJECT TO WITHHOLDING, SO AS TO EXCLUDE WAGES OF SEVEN THOUSAND FIVE HUNDRED DOLLARS OR LESS A YEAR PAID TO A DISABLED PERSON EMPLOYED IN A PROGRAM APPROVED BY THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS.

A.    Section 12-8-520(D) of the 1976 Code, as added by Act 76 of 1995, is amended by adding:

    "(11)    for services performed by a disabled person:
        (a)    as defined by the Department of Disabilities and Special Needs;
        (b)    employed in a program approved by the Department of Disabilities and Special Needs; and
        (c)    with a projected income of seven thousand five hundred dollars a year, or less."

B.    This section is effective for taxable years beginning after 1998.

TO AMEND ARTICLE 5, CHAPTER 1, TITLE 6, OF THE 1976 CODE, RELATING TO LOCAL ACCOMMODATIONS TAX, BY ADDING SECTION 6-1-570 AND TO AMEND ARTICLE 7, CHAPTER 1, TITLE 6, RELATING TO LOCAL HOSPITALITY TAX, BY ADDING SECTION 6-1-770 BOTH SO AS TO REQUIRE REMITTANCE OF THE TAX DUE TO THE LOCAL GOVERNING BODY ON A MONTHLY BASIS WHEN THE ESTIMATED AMOUNT OF AVERAGE TAX IS MORE THAN FIFTY DOLLARS A MONTH, ON A QUARTERLY BASIS WHEN THE ESTIMATED AMOUNT OF AVERAGE TAX IS TWENTY-FIVE DOLLARS TO FIFTY DOLLARS A MONTH, AND ON AN ANNUAL BASIS WHEN THE ESTIMATED AMOUNT OF AVERAGE TAX IS LESS THAN TWENTY-FIVE DOLLARS A MONTH.

A.    Article 5, Chapter 1, Title 6 of the 1976 Code, as added by Act 138 of 1997, is amended by adding:

    "Section 6-1-570.    The tax provided for in this article must be remitted to the local governing body on a monthly basis when the estimated amount of average tax is more than fifty dollars a month, on a quarterly basis when the estimated amount of average tax is twenty-five dollars to fifty dollars a month, and on an annual basis when the estimated amount of average tax is less than twenty-five dollars a month."

B.    Article 7, Chapter 1, Title 6 of the 1976 Code, as added by Act 138 of 1997, is amended by adding:

    "Section 6-1-770.    The tax provided for in this article must be remitted to the local governing body on a monthly basis when the estimated amount of average tax is more than fifty dollars a month, on a quarterly basis when the estimated amount of average tax is twenty-five dollars to fifty dollars a month, and on an annual basis when the estimated amount of average tax is less than twenty-five dollars a month."

C.    This section takes effect July 1, 1998.

TO AMEND SECTION 44-56-460 OF THE 1976 CODE, RELATING TO ESTABLISHING REHABILITATION PRIORITIES AT CONTAMINATED DRYCLEANING FACILITIES, SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL MAY NOT EXPEND FROM THE DRYCLEANING FACILITY RESTORATION FUND MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY FOR INVESTIGATION AND REHABILITATION ACTIVITIES; AND TO AMEND SECTION 44-56-470, RELATING TO ANNUAL DRYCLEANING FACILITY REGISTRATION FEES, SO AS TO EXTEND FROM DECEMBER 1, 1996 TO JULY 1, 1999 THE TIME WITHIN WHICH A FACILITY OWNER OR OPERATOR MUST DEMONSTRATE COMPETENCY TO OPERATE A FACILITY AND MUST INSTALL DIKES OR OTHER CONTAINMENT STRUCTURES AROUND EQUIPMENT.

A.    Section 44-56-460(C) of the 1976 Code, as added by Act 119 of 1995, is amended to read:

    "(C)    The department may not expend more than two hundred fifty thousand dollars from the fund annually to pay for the costs at any one eligible site for the activities described in Section 44-56-420(B)."

B.    Section 44-56-470(D) and (E) of the 1976 Code, as added by Act 119 of 1995, is amended to read:

    "(D)    Before July 1, 1999, an owner or operator of a drycleaning facility or person shall receive certification from the International Fabricare Institute, the Neighborhood Cleaners Association, or some other comparable nationally recognized drycleaning industry association certifying that the operator has demonstrated a level of competency to operate a drycleaning facility in accordance with the highest standards of the drycleaning industry.
    (E)    Before July 1, 1999, an owner or operator of a drycleaning facility or person shall install dikes or other containment structures around each machine or item of equipment in which drycleaning solvents are used and around an area in which solvents or waste containing solvents are stored. The dikes or containment structures must be capable of containing one-third of the capacity of the total tank capacity of each machine. To the extent practicable, an owner of a drycleaning facility or person shall seal or otherwise render impervious those portions of all diked floor surfaces upon which any drycleaning solvents may leak, spill, or otherwise be released."

TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO EXEMPT AUTOMATIC TELLER MACHINE TRANSACTIONS.

Section 12-36-2120(11) of the 1976 Code is amended to read:

    "(11)(a)    toll charges for the transmission of voice or messages between telephone exchanges;
        (b)    charges for telegraph messages;
        (c)    carrier access charges and customer access line charges established by the Federal Communications Commission or the South Carolina Public Service Commission; and
        (d)    transactions involving automatic teller machines;"

TO AMEND CHAPTER 3, TITLE 50 OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF NATURAL RESOURCES, BY ADDING ARTICLE 9 SO AS TO CREATE THE SOUTH CAROLINA JOCASSEE GORGES TRUST FUND, AND TO PROVIDE FOR THE ADMINISTRATION AND USES OF THE TRUST FUND.

Chapter 3, Title 50 of the 1976 Code is amended by adding:

    Section 50-3-900.    There is created the South Carolina Jocassee Gorges Trust Fund, the income and principal of which must be used only for the purposes of supporting the operation and maintenance and the acquisition of additional real property complementary to those tracts of real property owned by the South Carolina Department of Natural Resources in Oconee and Pickens Counties, South Carolina, in the vicinity of Lake Jocassee which are known collectively as the Jocassee Gorges. All gifts, grants, and contributions for this purpose must be accounted for separately from other assets of the fund.

    Section 50-3-910.    There is created the Board of Trustees of the Jocassee Gorges Trust Fund of the Department of Natural Resources, with full authority over the administration of the fund, whose chairman and members are the chairman and members of the board of the Department of Natural Resources. The State Treasurer is the custodian of the fund and shall invest its assets in accordance with the provisions of Title 11.

    Section 50-3-920.    The assets of the fund are derived from:
        (1)    the proceeds of any gifts, grants, and contributions to the State which are designated specifically for inclusion;
        (2)    other lawful sources.

    Section 50-3-930.    The fund constitutes a special trust derived from a contractual relationship between the State and the members of the public whose investments contribute to the fund. In recognition of the special trust, the following limitations and restrictions are placed on expenditures from the fund:
        (1)    Any limitations or restrictions specified by the donors on the uses of the income derived from the gifts, grants, and voluntary contributions are respected but are not binding.
        (2)    After applying income received and accruing from the investments of gifts, grants, and contributions, the board of trustees of the fund may liquidate and expend principal of the fund.
        (3)    The income received and accruing from the investments of the fund must be spent only to acquire additional real property complementary to or protective of the Jocassee Gorges and in furthering the operation and maintenance of the Jocassee Gorges.

    Section 50-3-940.    The board may accumulate the investment income of the fund and may direct expenditures from the income of the fund for the purposes set forth in Section 50-3-930(3).

    Section 50-3-950.    Expenditure of the income derived from the fund must be made through the board in accordance with the provisions of the general appropriations act. The fund is subject to the oversight of the State Auditor.

    Section 50-3-960.    The fund and income do not take the place of state appropriations or department receipts placed in the fund and must be used in accordance with Section 50-3-930(3).

    Section 50-3-970.    If the board of the Department of Natural Resources is dissolved, the succeeding agency shall assume the trusteeship of the fund and is bound by all the limitations and restrictions placed by this article on expenditures from the fund."

TO PROVIDE THAT AN EDUCATION FINANCE ACT ALLOCATION UNDERPAYMENT TO A SCHOOL DISTRICT RESULTING FROM AN ERROR IN INFORMATION SUBMITTED TO THE DEPARTMENT OF REVENUE FOR SCHOOL YEAR 1997-98 FOR PURPOSES OF CALCULATING THE INDEX OF TAXPAYING ABILITY SHALL BE MADE UP, TO REQUIRE THE UNDERPAYMENT TO BE MADE UP IN EFA DISTRIBUTIONS TO THE DISTRICT OVER THE SUCCEEDING TWO SCHOOL YEARS, TO PROVIDE FOR EFA ALLOTMENT CALCULATIONS DURING THE PAYBACK PERIOD, TO REQUIRE THE UNDERPAYMENT TO EXCEED ONE PERCENT FOR THE DISTRICT TO BE ELIGIBLE FOR THE MAKEUP PAYMENT, AND TO REQUIRE ANY SCHOOL TAX LEVIED TO MAKE UP THE UNDERPAYMENT TO BE TAKEN INTO ACCOUNT BY A CORRESPONDING REDUCTION IN THE TAX LEVY REFLECTING THE AMOUNT OF MAKEUP FUNDS RECEIVED IN A SUBSEQUENT YEAR.

An Education Finance Act (EFA) underpayment to a school district resulting from an error in the information provided to the Department of Revenue for the purposes of calculating the index of taxpaying ability for the 1997-98 school year must be made up in EFA distributions to the district over two years, beginning with the 1998-99 school year distribution. The amount of the makeup payment to the district must be deducted from available EFA funds before the allocation of EFA funds for the two year. This section does not apply unless the amount of the underpayment exceeds one percent of the EFA funds allocated to the district for the 1997-98 school year. However, any local tax levied to generate additional revenue due to the EFA underpayment must be taken into account so as to reduce the tax levy by a corresponding amount for applicable year for which the makeup is received as provided in this section.

TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO INCLUDE PRESCRIPTION MEDICINES AND THERAPEUTIC RADIOPHARMECEUTICALS USED IN THE TREATMENT OF CANCER AND RELATED DISEASES.

A.    Section 12-36-2120(28)(a) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

    "(a)    medicine and prosthetic devices sold by prescription, prescription medicines and therapeutic radiopharmaceuticals used in the treatment of cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of any such treatment, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples;"

B.    This section takes effect June 28, 1999.