TO AMEND CHAPTER 63 OF TITLE 59 OF THE CODE, RELATING TO PUPILS, BY ADDING ARTICLE 13 SO AS TO PROVIDE THE CONDITIONS, REQUIREMENTS, AND PROCEDURES UNDER WHICH LOCAL SCHOOL BOARDS OF TRUSTEES BEGINNING WITH SCHOOL YEAR 2001-2002 SHALL ESTABLISH AND OPERATE A PROGRAM OF ALTERNATIVE SCHOOLS FOR CERTAIN STUDENTS IN THEIR DISTRICTS, TO PERMIT THESE ALTERNATIVE SCHOOL PROGRAMS TO BE OPERATED EITHER INDIVIDUALLY OR AS A COOPERATIVE AGREEMENT WITH OTHER LOCAL SCHOOL DISTRICTS, TO PROVIDE THAT LOCAL SCHOOL DISTRICTS OR CONSORTIUM OF LOCAL SCHOOL DISTRICTS MAY CONTRACT WITH A PRIVATE ENTITY TO PROVIDE ANY PORTION OF THE ALTERNATIVE SCHOOL PROGRAM WHICH DOES NOT HOWEVER RELIEVE THE DISTRICT OF ITS RESPONSIBILITY TO PROVIDE THESE PROGRAMS, AND TO PROVIDE FOR THE MANNER IN WHICH THESE ALTERNATIVE SCHOOLS SHALL BE FUNDED INCLUDING THE PROVISION OF FUNDING FOR EXISTING ALTERNATIVE SCHOOL PROGRAMS FOR FISCAL YEAR 1999-2000; AND TO REPEAL SECTION 59-18-1900 RELATING TO COMPETITIVE GRANTS TO FUND ALTERNATIVE SCHOOLS.

A.            Chapter 63, Title 59 of the 1976 Code is amended by adding:

           Section 59-63-1300.      The General Assembly finds that a child who does not complete his education is greatly limited in obtaining employment, achieving his full potential, and becoming a productive member of society.  It is therefore the intent of this article to authorize district school boards throughout the State to establish alternative school programs.  These programs shall be designed to meet the needs of students who have a history of disruptive behavior in school or who have committed a serious offense that warrants out-of-school suspension or expulsion from school according to the student conduct policies and behavior codes approved by the school board of trustees.  It is further the intent of this article that cooperative agreements may be developed among school districts in order to implement innovative exemplary programs.

     Section 59-63-1310.      For the purposes of this article:
     (1)      'Disruptive behavior' means behavior that interferes with the student's own learning or the educational process of others and requires attention and assistance beyond that which the traditional program can provide. It also means behavior that results in frequent conflicts of a disruptive nature while the student is under the jurisdiction of the school either in or out of the classroom or severely threatens the general welfare of students or others with whom the student comes into contact.
     (2)      'Serious offense' means behavior which includes, but is not limited to, violence, possession of weapons or controlled substances, or harassment or verbal abuse of school personnel or other students.

     Section 59-63-1320.        Beginning with the school year 2001-2002, the governing boards of all school districts shall establish, maintain, and operate, either individually or as a cooperative agreement among districts, alternative school programs at a site separate from other schools unless operated at a time when those schools are not in session or in another building on campus which would provide complete separation from other students.  School districts which elect to establish alternative school programs before school year 2001-2002 when all districts are required to have such programs must do so in the manner required by this chapter and shall be provided state funding for these programs as provided in Section 59-63-1370.  These programs shall be provided for, but not limited to, the following categories of students in grades 6-12:
     (1)      any student who has committed a serious offense which warrants suspension or expulsion from school according to the student conduct policies and behavior codes approved by the school board of trustees;
     (2)      any student referred to such alternative school program based upon a documented need for placement in the alternative school program by the school district, parent, legal guardian or custodian of student due to habitual exhibitions of disruptive behavior in violation of the student conduct policies and behavior codes approved by the school board of trustees;
     (3)      any student referred to such alternative school program based upon a documented need for placement in the alternative school program by the school district, parent, legal guardian or custodian of the student due to interference with the student's own learning or the educational process of others and requires attention and assistance beyond that which the traditional program can provide;
     (4)      any student referred to such alternative school program by the dispositive order of a family court judge, with the consent of the local board of trustees.
     Before a student may be placed in an alternative school program, a determination must be made by the local board that the written and distributed disciplinary policy of the district has been followed.  Districts must establish clear guidelines and procedures for the placement of students into an alternative school program and at a minimum they shall prescribe due process procedures for disciplinary actions.
     When students are being considered for placement in an alternative school program, districts must consider the requirements of the Federal Individuals with Disabilities Education Act (IDEA).
     If a student placed in an alternative school program enrolls in another school district before the expiration of the period of placement, the board of trustees of the district requiring the placement shall provide to the district in which the student enrolls, at the same time other records of the student are provided, information concerning the student's placement in an alternative school program.  Upon review of the information, the district in which the student enrolls may continue the alternative education program placement or may allow the student to attend regular classes without completing the period of the placement.

     Section 59-63-1325.      Nothing in this chapter shall abrogate, usurp, or diminish the authority of any public school district and its governing board to take such disciplinary action as it is otherwise empowered by law to take against any student for misconduct, including but not limited to expulsion, and nothing in this chapter shall require that any student be assigned to such an alternative school.  These decisions shall rest solely in the discretion of the district and school board, regardless of the offense, record of the child, or other information presented from any source.

     Section 59-63-1340.      Within the requirements of Section 59-1-440, alternative school programs may differ from traditional education programs and schools in scheduling, administrative structure, curriculum, or setting.  Programs must develop a mission statement and shall focus on the educational and behavioral needs of the students to include individual student instruction plans, evaluations at regular intervals of the student's educational and behavioral progress, instructional methods in meeting academic standards to include plans for utilization of available technology, strict codes of student conduct, counseling, strategies to gain strong parental input and support, strategies to ensure students will adapt to a regular school setting upon departure from the alternative school program, and a time line for meeting the academic and conduct standards set.
     The educational program for an alternative school must include the objectives of the adopted academic achievement standards in the core academic areas to ensure that the instructional program will enable students to make the transition to a regular school program or seek postsecondary education and to ensure that credit earned by students participating in the alternative school program can be transferred to either the sending public school or another public school in the State; provided, nothing herein shall prohibit school districts and/or the South Carolina Department of Education from establishing and providing new and innovative programs as may be authorized otherwise under law to meet the unique needs of alternative school students who otherwise might drop out of school or never be able successfully to complete the requirements for a diploma.
     Alternative school programs are authorized to use corporal punishment as a disciplinary method.  The school and its employees are not liable under the South Carolina Tort Claims Act for using corporal punishment unless the punishment is performed in a grossly negligent manner.

     Section 59-63-1350.      Each school district shall establish procedures for ensuring that teachers assigned to alternative school programs possess the pedagogical and content-related skills necessary to meet the needs of the student population.  Each school board also shall ensure that adequate staff development activities are available for alternative school program faculty and staff and ensure that the faculty and staff participate in these activities.  The State Department of Education in consultation with other appropriate entities shall provide assistance to school districts in the development of staff development programs which include best practices.  These programs shall be made available to all district teachers.

     Section 59-63-1360.      A school district shall determine what, if any, transportation shall be provided to students attending an alternative school in accordance with written district guidelines.

     Section 59-63-1370.      A school district shall allocate to an alternative school program the same per student expenditure to include federal, state, and local funds that would be allocated to the student's school if the student were attending the student's regularly assigned school.  This shall include any appropriate special education funding.
     Specific alternative school program funds shall be provided by the General Assembly in the annual general appropriations act at an EFA weighting of 1.41 in fiscal year 1999-2000, 1.57 in fiscal year 2000-2001, 1.74 in fiscal year 2001-2002 and thereafter.  Funds for the alternative school program shall be distributed through the EFA formula provided for in Section 59-20-40.  These funds shall be used for the establishment, maintenance, and operation of alternative schools programs.  Funds also may be used to provide for staff development needs pursuant to Section 59-63-1350.

     Section 59-63-1375.      The local board of trustees of a school district or consortium of local public school districts may contract with a private entity to provide any portion of the alternative school program, but, in no event, shall the local board of trustees of a public school district be relieved of their responsibility to provide an alternative school program.

     Section 59-63-1380.      The State Board of Education shall promulgate regulations for establishment, maintenance, and operation of alternative school programs to include clear procedures for annual alternative school program review and evaluation of its success.  The regulations shall require the minimum amount of paperwork and reporting necessary to comply with this article.
     Upon request of a school district, the State Department of Education shall provide the district informational material on developing an alternative school program that takes into consideration best practices."

B.      Section 59-18-1900 of the 1976 Code is repealed.

C.      This section takes effect July 1, 1999.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-24-65 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF THE SOUTH CAROLINA PRINCIPALS' EXECUTIVE INSTITUTE.

The 1976 Code is amended by adding:

     "Section 59-24-65.      The State Department of Education shall establish a Principals' Executive Institute (PEI) with the funds appropriated for that purpose.
     (1)      A task force appointed by the State Superintendent of Education shall begin on or before July 1, 1999, to design this program so that the first class of participants shall begin during school year 1999-2000.  The task force shall include, but is not limited to, representatives from the State Department of Education, business leaders, university faculty, district superintendents, school principals, South Carolina Teachers of the Year, representatives from professional organizations, members of the Education Oversight Committee, and appropriate legislative staff.
     (2)      The purpose of the PEI is to provide professional development to South Carolina's principals in management and school leadership skills.
     (3)      By January 1, 2000, the State Board of Education shall establish regulations governing the operation of the PEI.
     (4)      The focus of the first year of the Principals' Executive Institute shall be to serve the twenty-seven principals from impaired schools and other experienced principals as identified by the South Carolina Leadership Academy of the Department of Education and as approved by the local public school districts which employs such principals.
     (5)      The creation of the Principals' Executive Institute is not intended to replace or duplicate the State Department of Education's Leadership Academy.  Rather, the Principals' Executive Institute and the Leadership Academy shall interlock and work together to provide the training and developmental programs mandated under the 1998 Education Accountability Act."

TO AMEND SECTIONS 59-39-105, AS AMENDED, 59-39-180, AND 59-39-190, OF THE 1976 CODE, RELATING TO THE STAR DIPLOMA AND SCHOLARSHIP, SO AS TO CHANGE THE NAME OF THE DIPLOMA AND SCHOLARSHIP FROM "SUPERIOR SCHOLARS FOR TODAY AND TOMORROW" TO 'SUPERIOR TECHNOLOGY OR ACADEMIC REQUIREMENTS" AND TO PERMIT THE CARRYOVER OF CERTAIN FUNDS USED FOR THESE SCHOLARSHIPS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 59-39-106 SO AS TO PROVIDE THAT STUDENTS OF NONPUBLIC HIGH SCHOOLS WHO WANT TO QUALIFY FOR THE STAR DIPLOMA ARE ELIGIBLE TO TAKE THE REQUIRED EXIT EXAMS WITHOUT COST AT A LOCAL PUBLIC SCHOOL IN THE DISTRICT WHERE THEY RESIDE.

A.      Section 59-39-105, as last amended by Act 74 of 1998, is further amended to read:

     "Section 59-39-105.      For the purpose of recognizing and rewarding outstanding performance and academic achievement on the part of public and nonpublic school students beginning with the 1997-98 school year, students graduating from accredited public and nonpublic high schools of this State who have earned no less than twenty-four units as prescribed under Section 59-39-100, have met the requirements for either the college preparation or the technical preparation track as prescribed by the State Board of Education, and earned the equivalent of an overall "B" grade average or better shall be awarded the Superior Scholars for Today and Tomorrow Technology or Academic Requirements (STAR) diploma.  Students meeting the course requirements for this diploma by participating in higher level courses such as advanced placement shall have their grade point average adjusted to reflect the greater difficulty of these courses.  For the purposes of this diploma, the State Board of Education shall define what is meant by a "B" average and adjustments to be made to reflect course difficulty.
     The State Board of Education is directed to develop the design of the STAR diploma to recognize the special achievements of students awarded this diploma and to distinguish it from the diploma issued under Section 59-39-100.
     For purposes of this section, honors courses shall be included, along with advanced placement and international baccalaureate courses, in those courses where grade point averages are adjusted to reflect greater difficulty."

B.      Section 59-39-180 of the 1976 Code, as added by Act 155 of 1997, is amended to read:

     "Section 59-39-180.      The Superior Scholars for Today and Tomorrow Technology or Academic Requirements (STAR) Scholarship is established to reward students graduating from an accredited public or nonpublic high school of this State receiving a Superior Scholars for Today and Tomorrow Technology or Academic Requirements diploma pursuant to Section 59-39-105, who score no less than a composite score of 1100 on the Scholastic Aptitude Test and who attend an accredited public or private institution of higher learning or technical college in this State.  These students shall receive a scholarship of five hundred dollars to be used to pay for tuition and fees at any accredited higher education institution in South Carolina."

C.      Section 59-39-190 of the 1976 Code, as added by Act 155 of 1997, is amended to read:

     "Section 59-39-190.      The State Board of Education is authorized to promulgate regulations necessary for the implementation and administration of the Superior Scholars for Today and Tomorrow Technology or Academic Requirements (STAR) diploma and scholarship.  The Department of Education shall furnish the Commission on Higher Education with the list of students who qualify for the STAR Scholarship.  The Commission on Higher Education shall distribute the scholarship funds for these students to the appropriate institutions.  The Commission on Higher Education may carry forward any Education Improvement Act STAR diploma scholarship funds until June 30, 2001, to provide scholarships to students who remain on the STAR scholarship list should they enroll in a South Carolina higher education institution. "

D.      The 1976 Code is amended by adding:

     "Section 59-39-106.      Students of nonpublic high schools who want to qualify for the STAR diploma are eligible to take the required exit exams without cost by sitting for the exams at a local public school in the district where the nonpublic school student resides at the same time public school students sit for the exam.  The dates and times of the exit exams must be timely published and provided to nonpublic schools by the local public school districts."

TO AMEND SECTION 59-18-500 OF THE 1976 CODE, RELATING TO ACADEMIC PLANS FOR UNDERPERFORMING STUDENTS, SO AS TO PERMIT DISTRICTS TO REQUIRE AN UNDERPERFORMING STUDENT TO ATTEND SUMMER SCHOOL OR PARTICIPATE IN A COMPREHENSIVE REMEDIATION PROGRAM THE FOLLOWING YEAR.

Section 59-18-500(C) of the 1976 Code, as added by Act 400 of 1998, is amended to read:

     "(C)      At the end of the school year, the student's performance will be reviewed by appropriate school personnel. If the student's work has not been at grade level or if the terms of the academic plan have not been met, the student may be retained, or he may be required to attend summer school, or he may be required to attend a comprehensive remediation program the following year designed to address objectives outlined in the academic plan for promotion. Students required to participate the following year in a comprehensive remediation program must be considered on academic probation.  Comprehensive remediation programs established by the district shall operate outside of the normal school day.  If there is a compelling reason why the student should not be required to attend summer school or be retained, the parent or student may appeal to a district review panel."

TO AMEND SECTION 12-6-3385 OF THE 1976 CODE, RELATING TO A STATE INDIVIDUAL INCOME TAX CREDIT UP TO SPECIFIED LIMITS FOR A PORTION OF TUITION PAID AT A PUBLIC OR INDEPENDENT INSTITUTION OF HIGHER LEARNING IN THIS STATE, SO AS TO PROVIDE THAT THESE TUITION CREDITS MAY NOT BE CLAIMED FOR MORE THAN TWO CONSECUTIVE YEARS RATHER THAN FOUR CONSECUTIVE YEARS AFTER THE STUDENT ENROLLS IN AN ELIGIBLE INSTITUTION, AND TO MAKE THIS CREDIT NONREFUNDABLE.

SECTION 1.      Section 12-6-3385(A) of the 1976 Code, as added by Act 418 of 1998, is amended to read:

     "(A)      A student is allowed a refundable nonrefundable individual income tax credit equal to twenty-five percent, not to exceed eight hundred fifty dollars in the case of four-year institutions and twenty-five percent, not to exceed three hundred fifty dollars in the case of two-year institutions for tuition paid an institution of higher learning or a designated institution as provided for in this section during a taxable year. The amount of the tax credit claimed up to the limits authorized in this section for any taxable year may not exceed the amount of tuition paid during that taxable year.  Tuition credits may not be claimed for more than four two consecutive years after the student enrolls in an eligible institution.  However, extensions may be granted due to medical necessity as defined by the Commission on Higher Education.   The credit may be claimed by the student or by an individual eligible to claim the student as a dependent on his federal income tax return, whoever actually paid the tuition. The department shall prescribe a form for claiming the credit."

B.      This section applies for taxable years beginning after 1997, but the amendment to Section 12-6-3385(A) of the 1976 Code contained in this section making the credit nonrefundable applies for taxable years beginning after 1998.

TO AMEND SECTION 12-23-810, AS AMENDED, OF THE 1976 CODE, RELATING TO THE ANNUAL TAX ON LICENSED HOSPITALS, SO AS TO INCREASE THE ANNUAL REVENUES OF THE TAX FROM TWENTY-ONE AND ONE-HALF TO TWENTY-EIGHT AND ONE-HALF MILLION DOLLARS.

A.      Section 12-38-810(C) of the 1976 Code, as amended by Act 105 of 1991, is further amended to read:

     "(C)      Total annual revenues from the tax, exclusive of penalties and interest, in subsection (A) of this section must equal twenty-one eight and one-half million dollars."

B.      This section takes effect July 1, 1999.

TO AMEND THE 1976 CODE BY ADDING CHAPTER 40 TO TITLE 48 SO AS TO ENACT THE "SOUTH CAROLINA BEACH RESTORATION AND IMPROVEMENT TRUST ACT" SO AS TO PROVIDE FOR A TRUST FUND FOR PUBLIC BEACH RESTORATION AND MAINTENANCE, IMPROVEMENT AND ENHANCEMENT OF PUBLIC BEACH ACCESS, AND EMERGENCY SUPPORT FOLLOWING SEVERE STORM DAMAGE TO THE BEACH AND DUNES SYSTEM, TO PROVIDE FOR THE FUND'S CAPITALIZATION IN FISCAL YEAR 1999-2000 BY APPROPRIATION FROM THE GENERAL TAX REVENUES IN AN AMOUNT CONSIDERED APPROPRIATE BY THE GENERAL ASSEMBLY AND AN ANNUAL APPROPRIATION OF AN APPROPRIATE AMOUNT AFTER THAT, TO PROVIDE FOR ITS ADMINISTRATION BY THE OFFICE OF OCEAN AND COASTAL RESOURCE MANAGEMENT, AND TO REQUIRE COMPREHENSIVE COLLECTION AND EVALUATION OF DATA CONCERNING EROSION RATES AND HAZARD AREAS OF PUBLIC BEACHES TO BE USED FOR FUNDING PROJECTS FROM THE TRUST FUND.

A.      The General Assembly finds that:
     (1)      South Carolina's public beaches are vital to the state's tourism economy and growth; and
     (2)      access to and monitoring and maintenance of our beaches is essential for future tourism expansion and competitiveness, resident public enjoyment and safety, storm damage reduction, and protection of property and investments in tourism.

B.      Title 48 of the 1976 Code is amended by adding:

     Section 48-40-10.      This chapter may be cited as the 'South Carolina Beach Restoration and Improvement Trust Act'.

     Section 48-40-20.      As used in this chapter:
     (1)      'Trust fund' means the South Carolina Beach Restoration and Improvement Trust Fund.
     (2)      'Office' means the Office of Ocean and Coastal Resource Management of the Department of Health and Environment Control.
     (3)      'Beach renourishment' means the artificial establishment and periodic renourishment of a beach with sand that is compatible with the existing beach in a way so as to create a dry sand beach at all stages of the tide, as described in Section 48-39-270, to include where considered appropriate and necessary by the office, groin construction and maintenance to extend the life of such projects.

     Section 48-40-30.      There is established the South Carolina Beach Restoration and Improvement Trust Fund for the purposes of:
     (1)      providing matching funds to qualifying municipal and county governments for the restoration of eroded public beaches and improvement and enhancement of public beach access;
     (2)      restoring beaches and protective sand dunes on an emergency basis after significant storm damage; and
     (3)      evaluating erosion rates and hazard areas annually for all state beaches.

     Section 48-40-40.      (A)      The trust fund must be funded by annual appropriations from general tax revenues.  The appropriated monies must be credited to the trust fund account and maintained separately from the general fund and other funds.
     The monies credited to the account may be retained and carried forward, along with all interest earned.
(B)      The trust fund must be administered by the Office of Ocean and Coastal Resource Management of the Department of Health and Environmental Control pursuant to this chapter and its regulations governing application, review, ranking, and approval procedures for grants.

     Section 48-40-50.      (A)      Beginning in fiscal year 1999-2000 and each fiscal year after that, the General Assembly must appropriate from general tax revenues an amount it considers appropriate for credit to the trust fund.  The monies must be designated for funding:
           (1)      public beach restoration and maintenance projects; or
           (2)      improvement and enhancement of public beach access.
     (B)      Allocations of trust fund monies for public beach restoration and maintenance or improvement and enhancement of public beach access must be matched equally by municipal and county jurisdictions which are the sites of the projects.
           (1)      The local cost must be financed by all municipal and county jurisdictions in which the trust fund monies are applied, in proportion to the area of beach located within the respective jurisdictions.
           (2)      The matching requirement of this subsection does not apply to beach renourishment projects within state parks or other state-owned beachfront property.
     (C)      Trust fund allocations for a public beach restoration or maintenance project or project to improve and enhance public beach access may be made only to a project approved by the office pursuant to the application, review, ranking, and approval regulations promulgated, and procedures adopted, by the office.
     (D)      Municipal and county jurisdictions which apply for matching funds for proposed projects must be:
           (1)      ranked in relation to all other qualifying local government project applications; and
           (2)      approved according to the minimum regulatory criteria for construction within the beach and dune critical area.
     (E)      An application for trust fund monies for a public beach restoration or maintenance project or project to improve and enhance public beach access may be accepted by the office only from a municipal or county government with a Local Beach Management Plan approved by the office.
     (F)      An application pursuant to this section for matching funds for a public beach renourishment project may be accepted and ranked by the office only if the project first has been fully permitted and approved as otherwise provided by law.
     (G)      Allocations of trust fund monies may be made to approved public beach restoration or maintenance projects or projects for improvement and enhancement of public beach access only through properly executed written agreements between the office and all the municipal and county project sponsors.  All the trust fund monies and the nonstate matching funds required for financing the projects must be deposited in an escrow account within five business days of the execution of the agreement and receipt of the monies from the trust fund.  The office must be given quarterly financial status reports of this account and annual and final audit reports throughout the project's duration and at completion.
     (H)      State funds appropriated and designated for funding local efforts pursuant to this section may be used only for the purposes of public beach access improvement and enhancement and public beach restoration and maintenance projects.

     Section 48-40-60.      (A)      The initial capitalization of the trust fund in fiscal year 1999-2000 must include an additional appropriation of an amount considered appropriate by the General Assembly from general tax revenues for credit to the trust fund and designated for use to establish an emergency reserve fund for emergency response by the State in rebuilding the beach and dune systems for qualifying public beach areas damaged by storm events.
     (B)      This emergency reserve fund must be administered by the office in consultation with the State Emergency Preparedness Division and impacted municipal, county, and federal officials.
     (C)      Monies in the emergency reserve fund may be carried forward with earned interest.  Upon the allocation and commitment of all available emergency reserve funds, the fund must be recapitalized through future appropriations as needed.
     (D)      State funds appropriated for credit to the emergency reserve fund and designated for emergency rebuilding of beach and dune systems damaged by storm events may be used only for that purpose.
     (E)      Funding of emergency projects pursuant to this section does not require matching funds from local entities.

     Section 48-40-70.      (A)      The accumulated data from annual monitoring and evaluation of erosion rates and hazard areas for all beach areas as required of the office in Sections 48-39-280, 48-39-320, and 48-39-330 must be analyzed and used in the determination of priorities of need for storm damage reduction, property protection, recreational beach restoration, and public notification of erosion and hazardous conditions.
     (B)      The annual analysis must be funded by the trust fund, in an annual amount not to exceed two hundred fifty thousand dollars to provide for comprehensive beach profile monitoring of all beach areas to establish annual erosion rates and to identify sand loss or accretion.
     (C)      In seriously eroding areas or after storms, surveys must be conducted twice annually, or more frequently as needed.
     (D)      The monitoring data produced pursuant to this section must be made available to the public.
     (E)      The office and local governments must use the annual analysis to document beach restoration needs and for restoration project design."

C.      This section takes effect July 1, 1999.

TO AMEND SECTION 44-96-170, AS AMENDED, OF THE 1976 CODE, RELATING TO WASTE TIRES AND THE DISPOSAL FEE IMPOSED ON THE SALE OF NEW TIRES UNDER THE SOUTH CAROLINA SOLID WASTE POLICY AND MANAGEMENT ACT OF 1991, SO AS TO REDUCE THE FEE FROM TWO DOLLARS TO ONE DOLLAR AND EIGHTY CENTS A TIRE.

A.      Section 44-96-170(L)(1) of the 1976 Code, as amended by Act 432 of 1998, is further amended to read:

     "(1)      For sales made on or after November 1, 1991 June 30, 1999, there is imposed a fee of two dollars one dollar and eighty cents for each new tire sold to the ultimate consumer, whether or not the tire is mounted by the seller.  The wholesaler or retailer receiving new tires from unlicensed wholesalers is responsible for paying the fee imposed by this subsection."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 12-33-245 OF THE 1976 CODE RELATING TO THE TWENTY-FIVE CENT EXCISE TAX ON MINIBOTTLES, SO AS TO PROVIDE THAT THE STATE TREASURER SHALL DISTRIBUTE ELEVEN PERCENT OF THE REVENUES OF THIS TAX TO COUNTIES FOR EDUCATIONAL PROGRAMS RELATING TO THE USE OF ALCOHOLIC LIQUORS AND FOR THE REHABILITATION OF ALCOHOLISM AND DRUG ADDICTS.

A.      Section 12-33-245 of the 1976 Code, as added by Act 415 of 1996, is amended to read:

     "Section 12-33-245.      (A)      In lieu of taxes imposed under Sections 12-33-230 and 12-33-240, alcoholic liquors sold in minibottles must be taxed at the rate of twenty-five cents for each container in addition to the case tax as prescribed in Article 5 of this chapter and collected as those taxes are collected.  Taxes levied in Article 3 of this chapter do not apply.
     (B)      Eleven percent of the revenue generated by subsection (A) must be paid by the State Treasurer to counties for educational purposes relating to the use of alcoholic liquors and for the rehabilitation of alcoholics and drug addicts."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 56-1-1330, AS AMENDED, OF THE 1976 CODE, RELATING TO THE REQUIREMENT THAT AN APPLICANT FOR A PROVISIONAL DRIVER'S LICENSE MUST COMPLETE AN ALCOHOL TRAFFIC SAFETY ACTION PROGRAM, SO AS TO DELETE THE PROVISIONS WHICH REQUIRE AN ASSESSMENT OF A PERSON ENROLLED IN THE PROGRAM AND THE COMPLETION OF A TREATMENT PROGRAM, AND DELETE THE PROVISIONS RELATING TO THE ASSESSMENT OF COSTS RELATED TO THE PROGRAM; AND TO AMEND SECTION 56-5-2990, AS AMENDED, RELATING TO THE SUSPENSION OF THE DRIVER'S LICENSE OF A PERSON CONVICTED OF DRIVING UNDER THE INFLUENCE OF ALCOHOL OR ANY OTHER DRUG, SO AS TO PROVIDE THAT THE ALCOHOL AND DRUG ACTION PROGRAM SHALL DETERMINE IF A PERSON WHOSE DRIVER'S LICENSE HAS BEEN SUSPENDED AND IS ENROLLED IN ONE OF ITS ALCOHOL AND DRUG ABUSE PROGRAMS SUCCESSFULLY HAS COMPLETED ITS SERVICES, TO REVISE THE SCHEDULE OF FEES THAT A PERSON ENROLLED IN AN ALCOHOL AND DRUG SAFETY ACTION PROGRAM IS ASSESSED AND PROVIDE THAT A PERSON WHO IS UNABLE TO PAY FOR CERTAIN SERVICES MUST PERFORM COMMUNITY SERVICE AND MAY NOT BE DENIED SERVICES OR MAY NOT BE UNSUCCESSFULLY COMPLETED FROM THE PROGRAM, TO REQUIRE THE DEPARTMENT OF ALCOHOL AND OTHER DRUG ABUSE SERVICES TO REPORT TO THE HOUSE WAYS AND MEANS COMMITTEE THE NUMBER OF FIRST AND MULTIPLE OFFENDERS SUCCESSFULLY COMPLETING THE ALCOHOL AND DRUG SAFETY ACTION PROGRAM AND OTHER INFORMATION ABOUT THE PROGRAM, TO REVISE THE PERIOD IN WHICH A PERSON MUST COMPLETE THE SERVICES DIRECTED BY THE ALCOHOL AND DRUG SAFETY ACTION PROGRAM BEFORE A HEARING ON THE PERSON'S STATUS MUST BE HELD, AND TO DELETE THE PROVISION THAT PROVIDES THAT THE SUCCESSFUL COMPLETION OF EDUCATION, TREATMENT SERVICES, OR BOTH, FOR PURPOSES OF RECEIVING A PROVISIONAL DRIVER'S LICENSE MAY BE SUBSTITUTED IN LIEU OF SERVICES RECEIVED FROM AN ALCOHOL AND DRUG SAFETY ACTION PROGRAM.

A.      Section 56-1-1330 of the 1976 Code, as last amended by Act 459 of 1996, is further amended to read:

     "Section 56-1-1330.      The provisional driver's license provision must include a mandatory requirement that the applicant enter enroll in an alcohol and Drug Safety Action Program certified by the Department of Alcohol and Other Drug Abuse Services and be assessed to determine the extent and nature of an alcohol and drug abuse problem, if any, and successfully complete treatment or education services recommended by the program.  The applicant shall bear the cost of the services which must be determined by the administering agency and approved by the Department of Alcohol and Other Drug Abuse Services.  The cost may not exceed seventy-five dollars for assessment, one hundred twenty-five dollars for education services, two hundred twenty-five dollars for treatment services, and three hundred dollars in total for any and all services.  The commission shall recommend subsequent cost changes on an annual basis subject to the approval of the General Assembly and successfully complete services pursuant to the requirements contained in Section 56-5-2990.  If the applicant fails to complete successfully the services as directed by the department Alcohol and Drug Safety Action Program, the Department of Alcohol and Other Drug Abuse Services shall notify the department, and the provisional driver's license issued by the department must be revoked, and the suspension imposed for the full periods specified in Section 56-5-2990, the suspension to which shall begin on date of notification to the individual."

B.      Section 56-5-2990 of the 1976 Code, as last amended by Act 434 of 1998, is further amended to read:

     "Section 56-5-2990.      (A)      The department shall suspend the driver's license of a person who is convicted, receives sentence upon a plea of guilty or of nolo contendere, or forfeits bail posted for a violation of Section 56-5-2930 or for the violation of another law or ordinance of this State or of a municipality of this State that prohibits a person from driving a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics for six months for the first conviction, plea of guilty or of nolo contendere, or forfeiture of bail; one year for the second conviction, plea of guilty or of nolo contendere, or forfeiture of bail; two years for the third conviction, plea of guilty or of nolo contendere, or forfeiture of bail; and a permanent revocation of the driver's license for the fourth or subsequent conviction, plea of guilty or of nolo contendere, or forfeiture of bail.  Only those violations which occurred within ten years including and immediately preceding the date of the last violation shall constitute prior violations within the meaning of this section.  However, if the third conviction occurs within five years from the date of the first offense, then the department shall suspend the driver's license for four years. A person whose license is revoked following conviction for a fourth offense as provided in this section is forever barred from being issued any license by the Department of Public Safety to operate a motor vehicle except as provided in Section 56-1-385.
     (B)            Any person whose license is suspended under the provisions of this section, Section 56-1-286, or 56-5-2951 must be notified by the department of the suspension and of the requirement to enroll in and successfully complete an Alcohol and Drug Safety Action Program certified by the Department of Alcohol and Other Drug Abuse Services prior to reinstatement of the license.  An assessment of the extent and nature of the alcohol and drug abuse problem, if any, of the applicant must be prepared and a plan of education or treatment, or both, must be developed for the applicant.  Entry into and successful completion of the services, if the services are necessary, recommended in the plan of education or treatment, or both, developed for the applicant is a mandatory requirement of the restoration of driving privileges to the applicant.  The Alcohol and Drug Safety Action Program shall determine if the applicant successfully has completed the services.
     (C)            The Each applicant shall bear the cost of the services to be determined by the Alcohol and Drug Safety Action Program and approved by the Department of Alcohol and Other Drug Abuse Services.  The cost may not exceed seventy-five dollars for assessment, one hundred twenty-five dollars for education services, two hundred twenty-five dollars for treatment services, and three hundred dollars in total for any and all services.  The cost may not exceed five hundred dollars for educational services if the applicant has one suspension within the meaning of this section or two thousand five hundred dollars if the applicant has multiple suspensions within the meaning of this section.  Payment for services may not be used as a factor in determining if the applicant has completed services successfully.  No applicant may be denied services due to an inability to pay.  The Alcohol and Drug Safety Action Program shall determine if the applicant has successfully completed services within six months of the date of enrollment or shall certify that the person is making satisfactory progress toward completion of the program.  An applicant who does not pay for services shall perform fifty hours of community service as arranged by the Alcohol and Drug Safety Action Program, which may use the completion of this community service as a factor in determining if the applicant has completed services successfully.  The Department of Alcohol and Other Drug Abuse Services shall report annually to the House Ways and Means Committee on the number of first and multiple offenders completing the program, the amount of fees collected and expenses incurred by each program, and the number of community service hours performed instead of payment.
     (D)            If the applicant has not successfully completed the services as directed by the Alcohol and Drug Safety Action Program within six months one year of enrollment, a hearing must be provided by the Alcohol and Drug Safety Action Program whose decision is appealable to the Department of Alcohol and Other Drug Abuse Services.  If the applicant is unsuccessful in the Alcohol and Drug Safety Action Program, the department may restore the privilege to drive a motor vehicle upon the recommendation of the Medical Advisory Board as utilized by the department if it determines public safety and welfare of the petitioner may not be endangered.
     (E)            The department and the Department of Alcohol and Other Drug Abuse Services shall develop procedures necessary for the communication of information pertaining to relicensing, or otherwise.  These procedures must be consistent with the confidentiality laws of the State and the United States.  Successful completion of education, treatment services, or both, for purposes of receiving a provisional driver's license as stipulated in Section 56-1-1330 may be substituted in lieu of services received under the authority of this section at the discretion of the applicant.  If the driver's license of any person is suspended by authority of this section, no insurance company may refuse to issue insurance to cover the remaining members of his family, but the insurance company is not liable for any actions of the person whose license has been suspended or who has voluntarily turned his license in to the department.
     (F)            Except as provided for in Section 56-1-365(D) and (E), the driver's license suspension periods under this section begin on the date the person is convicted, receives sentence upon a plea of guilty or of nolo contendere, or forfeits bail posted for the violation of Section 56-5-2930, or for the violation of any other law of this State or ordinance of a county or municipality of this State that prohibits a person from operating a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics;  however, a person is not prohibited from filing a notice of appeal and receiving a certificate which entitles him to operate a motor vehicle for a period of sixty days after the conviction, plea of guilty or nolo contendere, or bail forfeiture pursuant to Section 56-1-365(F)."

C.      The section takes effect July 1, 1999.

TO AMEND SECTION 50-9-510, AS AMENDED, OF THE 1976 CODE, RELATING TO LICENSES AUTHORIZED FOR SALE, SO AS TO INCREASE THE FEE FOR A COMBINATION HUNTING AND FISHING LICENSE FROM SEVENTEEN TO TWENTY-THREE DOLLARS, AND TO INCREASE THE AMOUNT THAT MAY BE RETAINED BY THE ISSUING AGENT FROM ONE TO TWO DOLLARS.

A.      Section 50-9-510(3) of the 1976 Code, as last amended by Act 372 of 1996, is further amended to read:

     "(3)      For the privilege of hunting and fishing, including the privilege of hunting big game throughout South Carolina, a resident of the State shall purchase a combination fishing and hunting license for seventeen twenty-three dollars, of which one dollar two dollars may be retained by the issuing agent."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 50-9-510, AS AMENDED, OF THE 1976 CODE, RELATING TO LICENSES AUTHORIZED FOR SALE, SO AS TO INCREASE THE FEE FOR A SPORTSMAN LICENSE FROM FORTY-FOUR TO FIFTY DOLLARS, AND TO INCREASE THE AMOUNT THAT MAY BE RETAINED BY THE ISSUING AGENT FROM ONE TO TWO DOLLARS.

A.      Section 50-9-510(4) of the 1976 Code, as last amended by Act 372 of 1996, is further amended to read:

     "(4)      For the privilege of hunting and fishing throughout South Carolina, including the privileges of hunting big game and hunting on wildlife management area land, a resident of the State shall purchase a sportsman license for forty-four fifty dollars, of which one dollar two dollars may be retained by the issuing agent."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 50-9-510, AS AMENDED, OF THE 1976 CODE, RELATING TO HUNTING, FISHING, AND TRAPPING LICENSES, SO AS TO RAISE THE LICENSE FEE FOR A BIG GAME PERMIT FROM EIGHTY DOLLARS TO EIGHTY-NINE DOLLARS WITH TWO DOLLARS RATHER THAN ONE DOLLAR TO BE RETAINED BY THE ISSUING AGENT.

A.      Section 50-9-510(10) of the 1976 Code is amended to read:

     "(10)      For the privilege of hunting big game including deer, bear, and turkey throughout South Carolina, a nonresident shall purchase a big game permit in addition to the required nonresident hunter's license for eighty eighty-nine dollars, of which one dollar two dollars may be retained by the issuing agent."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 50-9-920, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DEPOSIT OF REVENUE FROM THE SALE OF LIFETIME LICENSES IN THE STATE TREASURY, SO AS TO DELETE THE EXCEPTION FOR REVENUE FROM THE SALE OF LICENSES AND PERMITS PURSUANT TO THE MARINE RESOURCES LAWS.

A.      Section 50-9-920(C) of the 1976 Code, as last amended by Act 372 of 1996, is further amended to read:

     "(C)      Revenue generated from the sale of other licenses and permits, except revenue from the sale of licenses and permits pursuant to the marine resources laws, wildlife management area revenue, and revenue from the fines and forfeitures for violations of other sections of this title, must be deposited with the State Treasury to the credit of the Game Protection Fund.  This revenue must be expended by the department for the protection, promotion, propagation, and management of wildlife and fish, the enforcement of related laws, and the dissemination of information, facts, and findings the department considers necessary."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 51-17-115 OF THE 1976 CODE, AS AMENDED, RELATING TO THE ESTABLISHMENT AND ADMINISTRATION OF THE HERITAGE LAND TRUST FUND, SO AS TO DELETE LIMITATIONS ON THE AMOUNT OF MANAGEMENT EXPENDITURES THAT MAY BE MADE FROM THE FUND IN ANY FISCAL YEAR.

A.      Section 51-17-115 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

     "Section 51-17-115.  There is created the Heritage Land Trust Fund, which must be kept separate from other funds of the State. The fund must be administered by the board of the department for the purpose of acquiring fee simple or lesser interest in priority areas, legal fees, appraisals, surveys, or other costs involved in the acquisition of interest in priority areas, and for the development of minimal facilities and management necessary for the protection of the essential character of priority areas. Expenditures under this section for management may not exceed ten percent of revenues to the fund in any fiscal year.
     Unexpended balances, including interest derived from the fund, must be carried forward each year and used only for the purposes provided in this chapter.
No fund money may be expended to acquire interest in property by eminent domain nor may the funds be expended to acquire interest in property without a recommendation of the Heritage Trust Advisory Board and the approval of the State Budget and Control Board.
     The board of the department shall report by letter to the presiding officers of the General Assembly not later than January fifteenth each year all funds expended pursuant to this chapter for the previous year, including the amount of funds expended and the uses to which the expenditures were applied.
     The fund is eligible to 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 any Heritage Preserve acquired under this section, or products of the Preserve such as timber, utility easement rights, and the like, accrue to the fund."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 17-3-30, AS AMENDED, OF THE 1976 CODE, RELATING TO THE AFFIDAVIT OF INABILITY TO EMPLOY COUNSEL AND THE WAIVER OR REDUCTION OF THE APPLICATION FEE, SO AS TO PROVIDE THE TRIAL JUDGE SHALL ORDER THE REMAINDER OF THE FEE PAID DURING PROBATION, IF PROBATION IS GRANTED, AND TO PROVIDE FURTHER THAT THE CLERK OF COURT OR OTHER APPROPRIATE OFFICIAL SHALL MAINTAIN A RECORD OF ALL PERSONS APPLYING FOR REPRESENTATION AS AN INDIGENT AND PROVIDE THIS INFORMATION AS WELL AS THE AMOUNT OF FUNDS COLLECTED OR WAIVED TO THE OFFICE OF INDIGENT DEFENSE ON A MONTHLY BASIS.

A.      Section 17-3-30(B), as amended by Act 458 of 1996, is further amended to read:

     "(B)      A twenty-five dollar application fee for public defender services must be collected from every person who executes an affidavit that he is financially unable to employ counsel.  The person may apply to the clerk of court or other appropriate official for a waiver or reduction in the application fee.  If the clerk or other appropriate official determines that the person is unable to pay the application fee, the fee may be waived or reduced, provided that if the fee is waived or reduced, the clerk or appropriate official shall report the amount waived or reduced to the trial judge upon sentencing and the trial judge shall order the remainder of the fee paid during probation if the person is granted probation.  The clerk of court or other appropriate official shall collect the application fee imposed by this section and remit the proceeds to the state fund on a monthly basis.  The monies must be deposited in an interest-bearing account separate from the general fund and used only to provide for indigent defense services.  The monies shall be administered by the Office of Indigent Defense. The clerk of court or other appropriate official shall maintain a record of all persons applying for representation and the disposition of the application and shall provide this information to the Office of Indigent Defense on a monthly basis as well as reporting the amount of funds collected or waived."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 23-31-216 OF THE 1976 CODE, RELATING TO THE COLLECTION OF CONCEALABLE WEAPON FEES BY THE STATE LAW ENFORCEMENT DIVISION, SO AS TO PROVIDE THAT THE STATE LAW ENFORCEMENT DIVISION SHALL COLLECT, RETAIN, AND CARRY FORWARD ALL FEES ASSOCIATED WITH THE CONCEALABLE WEAPON PERMIT PROGRAM.

A.      "Section 23-31-216, of the 1976 Code, of the 1976 Code, as added by Act 39 of 1997, is amended to read:

     "Section 23-31-216.      The State Law Enforcement Division shall collect, and maintain retain, and carry forward all fees associated with the concealable weapon application, renewal, and replacement fees of the permit, as provided for in this article, to offset the expenses related to the administration of this article."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 41-27-410 OF THE 1976 CODE, RELATING TO THE  EMPLOYMENT SECURITY ADMINISTRATIVE CONTINGENCY ASSESSMENT, SO AS TO PROVIDE THAT THE CONTRIBUTION RATE MEANS THE CONTRIBUTION BASE RATE; TO AMEND SECTION 41-31-10, RELATING TO THE GENERAL RATE OF CONTRIBUTION FOR EMPLOYMENT SECURITY PURPOSES, SO AS TO PROVIDE THAT, FOR CALENDAR YEAR 2000 AND THEREAFTER, EMPLOYERS SUBJECT TO THE PAYMENT OF CONTRIBUTIONS ARE SUBJECT ALSO TO AN ADJUSTMENT OVER AND ABOVE THEIR BASE RATE, IF SO REQUIRED BY SECTION 41-31-80; TO AMEND SECTION 41-31-40, RELATING TO RATE COMPUTATION PERIODS AND THE MINIMUM CONTRIBUTION FOR THE FIRST TWENTY-FOUR MONTHS FOR EMPLOYMENT SECURITY PURPOSES, SO AS TO PROVIDE THAT RATE MEANS BASE RATE; TO AMEND SECTION 41-31-50, RELATING TO THE DETERMINATION OF RATES AND VOLUNTARY PAYMENTS FOR EMPLOYMENT SECURITY PURPOSES, SO AS TO PROVIDE THAT RATE MEANS BASE RATE, PROVIDE FOR THE SCHEDULE OF DETERMINED RATES FOR CALENDAR YEARS COMMENCING WITH THE YEAR 2000, AND PROVIDE FOR RELATED MATTERS; TO AMEND SECTION 41-31-60, RELATING TO EMPLOYMENT SECURITY, THE APPLICABLE RATE WHERE A DELINQUENT REPORT IS RECEIVED, AND THE PROVISION THAT THERE SHALL BE NO REDUCTION PERMITTED IN THE RATE WHEN EXECUTION FOR THE UNPAID TAX IS OUTSTANDING, SO AS TO PROVIDE THAT  RATE MEANS BASE RATE; TO AMEND SECTION 41-31-80, RELATING TO EMPLOYMENT SECURITY AND THE STATEWIDE RESERVE RATIO, SO AS TO PROVIDE THAT, FOR THE BASE RATE COMPUTATIONS MADE FOR YEARS PRIOR TO CALENDAR YEAR 2000, WHEN THE STATEWIDE RESERVE RATIO COMPUTED DURING ANY CALENDAR YEAR EQUALS OR EXCEEDS THREE AND ONE-HALF PERCENT, CONTRIBUTION RATES APPLICABLE TO THE ENSUING CALENDAR YEAR ARE COMPUTED IN ACCORDANCE WITH SECTIONS 41-31-40 AND 41-31-50, AND PROVIDE THAT, FOR THE BASE RATE COMPUTATIONS MADE FOR YEARS COMMENCING WITH CALENDAR YEAR 2000, WHEN THE STATEWIDE RESERVE RATIO COMPUTED DURING ANY CALENDAR YEAR IS LESS THAN TWO PERCENT, ALL CONTRIBUTION BASE RATES AS COMPUTED IN ACCORDANCE WITH SECTIONS 41-31-40 AND 41-31-50 ARE ADJUSTED IN ACCORDANCE WITH THE PROVIDED SCHEDULE; TO AMEND SECTION 41-31-110, RELATING TO EMPLOYMENT SECURITY AND THE COMPUTATION OF RATES APPLICABLE TO SUCCESSORS, SO AS TO PROVIDE THAT RATE MEANS BASE RATE; AND TO AMEND SECTION 41-31-670, RELATING TO EMPLOYMENT SECURITY, FINANCING BENEFITS PAID TO EMPLOYEES OF NONPROFIT ORGANIZATIONS, AND SPECIAL PROVISIONS FOR ORGANIZATIONS THAT MADE REGULAR CONTRIBUTIONS PRIOR TO JANUARY 1, 1969, SO AS TO PROVIDE THAT EMPLOYER'S RATE MEANS EMPLOYER'S BASE RATE.

A.      Section 41-27-410 of the 1976 Code is amended to read:

     "Section 41-27-410.      Effective January 1, 1986, the employment security administrative contingency assessment is an assessment of six one-hundredths of one percent to be assessed upon the wages as defined in Section  41-27-380(2) of all employers except those who have either elected to make payments in lieu of contributions as defined in Section  41-31-620 or are liable for the payment of contributions as defined in Section  41-31-620 or are liable for the payment of contributions and are classified as a state agency or any political subdivision or any instrumentality of the political subdivision as defined in Section  41-27-230(2) or have been assigned a contribution base rate of five and four-tenths percent."

B.      Section 41-31-10 of the 1976 Code is amended to read:

     "Section 41-31-10.      (A)      Each employer shall pay contributions equal to five and four-tenths percent of wages paid by him during each year except as may be otherwise provided in Chapters 27 through 41 of this title.
     (B)      For calendar year 2000 and subsequent years, employers subject to the payment of contributions are subject also to an adjustment over and above their base rate, if required by Section 41-31-80(2)."

C.      Section 41-31-40 of the 1976 Code is amended to read:

     "Section 41-31-40.      Each employer's base rate for the twelve months commencing January first of any calendar year is determined in accordance with Section  41-31-50 on the basis of his record up to July first of the preceding calendar year, but no employer's base rate is less than two and sixty-four hundredths percent until there have been twenty-four consecutive months of coverage after first becoming liable for contributions under Chapters 27 through 41 of this title.  Each employer who completes twenty-four consecutive calendar months of coverage after first becoming liable for contributions under the chapters during the current calendar year shall have a base rate computed at the beginning of the calendar quarter following the calendar quarter during which twenty-four consecutive months of coverage are completed based on the employer's experience through the preceding quarter.  The base rate computed in accordance with Section  41-31-50 is applicable for the remainder of the current calendar year.  For those employers completing the twenty-four months of coverage during the current calendar year, a new base rate for the succeeding calendar year is determined on the basis of their records through December thirty-first of the current year."

D.      Section 41-31-50 of the 1976 Code is amended to read:

     "Section 41-31-50.      Each employer eligible for a rate computation shall have his base rate determined in the following manner:
(1)      If, on the computation date as of which an employer's base rate is to be computed, as provided in Section  41-31-40, the total of all his contributions paid on his own behalf for all past periods exceeds the total benefits charged to his account for all the periods his contribution base rate for the period specified in Section  41-31-40 is, except for the provisions of Section  41-31-80, as follows:
     (a)      With respect to the calendar year 1973:
                 (i)      two and thirty-five hundredths percent, if the excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;
                 (ii)      two percent, if the excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;
                 (iii)      one and sixty-five hundredths percent, if the excess equals or exceeds seven percent but is less than eight percent of his most recent annual payroll;
                 (iv)      one and thirty hundredths percent, if the excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll;
                 (v)      ninety-five hundredths of one percent, if the excess equals or exceeds nine percent but is less than ten percent of his most recent annual payroll;
                 (vi)      six-tenths of one percent, if the excess equals or exceeds ten percent but is less than eleven percent of his most recent annual payroll;
                 (vii)  twenty-five hundredths of one percent, if the excess equals or exceeds eleven percent of his most recent annual payroll.
     (b)      With respect to calendar years 1974 through 1985:
                 (i)      two and thirty-five hundredths percent, if the excess equals or exceeds three percent but is less than four percent of his most recent annual payroll;
                 (ii)      two percent, if the excess equals or exceeds four percent but is less than five percent of his most recent annual payroll;
                 (iii)      one and sixty-five hundredths percent, if the excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;
                 (iv)      one and thirty hundredths percent, if the excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;
                 (v)      ninety-five hundredths of one percent, if the excess equals or exceeds seven percent but is less than eight percent of his most recent annual payroll;
                 (vi)      six-tenths of one percent, if the excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll;
                 (vii)  twenty-five hundredths of one percent, if the excess equals or exceeds nine percent of his most recent annual payroll.
     (c)      With respect to any calendar year commencing with the calendar year 1986:
                 (i)      two and twenty-nine hundredths percent, if the excess equals or exceeds three percent but is less than four percent of his most recent annual payroll;
                 (ii)      one and ninety-four hundredths percent, if the excess equals or exceeds four percent but is less than five percent of his most recent annual payroll;
                 (iii)      one and fifty-nine hundredths percent, if the excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;
                 (iv)      one and twenty-four hundredths percent, if the excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;
                 (v)      eighty-nine hundredths of one percent, if the excess equals or exceeds seven percent but is less than eight percent of his most recent annual payroll;
                 (vi)      fifty-four hundredths of one percent if the excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll;
                 (vii)  nineteen hundredths of one percent, if the excess equals or exceeds nine percent of his most recent annual payroll.
     (d)      With respect to any calendar year commencing with the calendar year 2000:
                 (i)      two and sixty-four hundredths percent, if the excess is less than four percent of his most recent annual payroll;
                 (ii)      two and twenty-nine hundredths percent, if the excess equals or exceeds four percent but is less than five percent of his most recent annual payroll;
                 (iii)      one and ninety-four hundredths percent, if the excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;
                 (iv)      one and fifty-nine hundredths percent, if the excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;
                 (v)      one and twenty-four hundredths percent, if the excess equals or exceeds seven percent but is less than eight percent of his most recent annual payrolls;
                 (vi)      eighty-nine hundredths percent, if the excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll;
                 (vii)  fifty-four hundredths percent, if the excess equals or exceeds nine percent of his most recent annual payroll.
(2)      If, on the computation date as of which an employer's base rate is to be computed, as provided in Section  41-31-40, the total of all his contributions paid on his own behalf for all past periods is less than the total benefits charged to his account for all the periods his contribution base rate for the period specified in Section  41-31-40 is, except for the provisions of Section 41-31-80, as follows:
     (a)      With respect to any calendar year prior to the calendar year 1985:
                 (i)      three and five hundredths percent, if the deficit equals five percent but is less than ten percent of his most recent annual payroll;
                 (ii)      three and forty hundredths percent, if the deficit equals ten percent but is less than fifteen percent of his most recent annual payroll;
                 (iii)      three and seventy-five hundredths percent, if the deficit equals fifteen percent but is less than twenty percent of his most recent annual payroll;
                 (iv)      four and ten hundredths percent, if the deficit equals or exceeds twenty percent of his most recent annual payroll.
     (b)      With respect to the calendar year 1985:
                 (i)      three and five hundredths percent, if the deficit equals five percent but is less than ten percent of his most recent annual payroll;
                 (ii)      three and forty hundredths percent, if the deficit equals ten percent but is less than fifteen percent of his most recent annual payroll;
                 (iii)      three and seventy-five hundredths percent, if the deficit equals fifteen percent but is less than twenty percent of his most recent annual payroll;
                 (iv)      four and ten hundredths percent, if the deficit equals twenty percent but is less than twenty-five percent of his most recent annual payroll;
                 (v)      four and forty-five hundredths percent, if the deficit equals twenty-five percent but is less than thirty percent of his most recent annual payroll;
                 (vi)      four and eighty hundredths percent, if the deficit equals thirty percent but is less than thirty-five percent of his most recent annual payroll;
                 (vii)  five and fifteen hundredths percent, if the deficit equals thirty-five percent but is less than forty percent of his most recent annual payroll;
                 (viii)  five and forty hundredths percent, if the deficit equals or exceeds forty percent of his most recent annual payroll.
     (c)      With respect to any calendar year commencing with the calendar year 1986:
                 (i)      two and sixty-four hundredths percent, if the deficit is less than five percent of his most recent annual payroll;
                 ( i) (ii)      two and ninety-nine hundredths percent if the deficit equals or exceeds five percent but is less than ten percent of his most recent annual payroll;
                 (ii)(iii)      three and thirty-four hundredths percent if the deficit equals or exceeds ten percent but is less than fifteen percent of his most recent annual payroll;
                 (iii)(iv)      three and sixty-nine hundredths percent if the deficit equals or exceeds fifteen percent but is less than twenty percent of his most recent annual payroll;
                 (iv)(v)      four and four hundredths percent if the deficit equals or exceeds twenty percent but is less than twenty-five percent of his most recent annual payroll;
                 (v)(vi)      four and thirty-nine hundredths percent if the deficit equals or exceeds twenty-five percent but is less than thirty percent of his most recent annual payroll;
                 (vi)(vii)      four and seventy-four hundredths percent if the deficit equals or exceeds thirty percent but is less than thirty-five percent of his most recent annual payroll;
                 (vii)(viii)      five and nine hundredths percent if the deficit equals or exceeds thirty-five percent but is less than forty percent of his most recent annual payroll;
                 (viii)(ix)      five and forty hundredths percent, if the deficit equals or exceeds forty percent of his most recent annual payroll.
(3)      In determining an employer's contribution rate, contributions for the quarter immediately preceding the computation date are considered as paid before the computation date if they are paid by the employer on or before the end of the month following the quarter or within any period of grace allowed by the Commission for payment of the quarter's contribution.
(4)      For calendar year 1986 and any subsequent calendar year, voluntary payments are not permitted for the purpose of obtaining a lower rate of required contributions."

E.      Section 41-31-60 of the 1976 Code is amended to read:

     "Section 41-31-60.      (1)      If on the computation date upon which an employer's base rate is to be computed as provided in Section  41-31-40 there is a delinquent report, a base rate of five and four-tenths percent must be assigned until the next computation date.  The assigned base rate is applicable for the entire period for which the computation is made even though the delinquent report is subsequently received.
     (2)      No employer is permitted to pay his unemployment compensation tax at a reduced base rate for any quarter when a tax execution issued in accordance with Section  41-31-390 with respect to delinquent unemployment compensation tax for a previous quarter is unpaid and outstanding against the employer.  If on the computation date upon which an employer's base rate is computed as provided in Section  41-31-40 there is an outstanding tax execution, a base rate of two and sixty-four hundredths percent must be assigned for the period to which the computation applies.  If the base rate for the prior year or the computed base rate for the computation period is greater than two and sixty-four hundredths percent, the highest base rate must be assigned until the next computation date or until such time as any outstanding tax execution has been paid."

F.      Section 41-31-80 of the 1976 Code is amended to read:

     "Section 41-31-80.      A statewide reserve ratio must be computed once each year by adding to the total unemployment compensation fund on June thirtieth all contributions and interest received on or before July thirty-first and dividing the result so obtained by the sum of the total wages reported by contributing employers on their contribution reports received by the commission during the twelve-month period ending September thirtieth of the current year.  Any amount credited to the state's account under Section 903 of the Social Security Act, as amended, which has been appropriated for expenses of administration, whether or not withdrawn from the trust fund, is excluded from the unemployment fund balance in computing the statewide reserve ratio.  Any amount due and payable as a payment in lieu of contributions by a nonprofit organization as provided in Section  41-31-630, the State of South Carolina, or the Federal Government must be added to the total unemployment compensation fund for the purposes of the computations required by this section.
     (1)      For the base rate computations made for years prior to the calendar year 2000, When when the statewide reserve ratio computed during any calendar year equals or exceeds three and one-half percent, contribution rates applicable to the following calendar year are computed in accordance with Sections 41-31-40 and 41-31-50.  When the statewide reserve ratio computed during any calendar year is less than three and one-half percent, all contribution rates applicable to the following calendar year are increased over those computed in accordance with Sections 41-31-40 and 41-31-50 as follows:
           (1)(a)      thirty-five hundredths of one percent, if the statewide reserve ratio equals or exceeds three percent but is less than three and one-half percent;
           (2)(b)      seven-tenths of one percent, if the statewide reserve ratio equals or exceeds two and one-half percent but is less than three percent;  and
           (3)(c)      one and five hundredths percent, if the statewide reserve ratio is less than two and one-half percent.
This section does not apply to any employer whose contribution rate is more than two and sixty-four hundredths percent, and no employer's rate shall exceed two and sixty-four hundredths percent by reason of the application of this section.
     (2)      For the base rate computations made for years commencing with calendar year 2000, when the statewide reserve ratio computed during any calendar year is less than two percent, all contribution base rates as computed in accordance with Sections 41-31-40 and 41-31-50 are adjusted as follows:
           (a)      one-tenth percent, if the statewide reserve ratio is less than two percent but not less than one and nine-tenths percent;
           (b)      two-tenths percent, if the statewide reserve ratio is less than one and nine-tenths percent but not less than one and eight-tenths percent;
           (c)      three-tenths percent, if the statewide reserve ratio is less than one and eight-tenths percent but not less than one and seven-tenths percent;
           (d)      four-tenths percent, if the statewide reserve ratio is less than one and seven-tenths percent but not less than one and six-tenths percent;
           (e)      five-tenths percent, if the statewide reserve ratio is less than one and six-tenths percent but not less than one and five-tenths percent;
           (f)      six-tenths percent, if the statewide reserve ratio is less than one and five-tenths percent but not less than one and four-tenths percent;
     (g)      seven-tenths percent, if the statewide reserve ratio is less than one and four-tenths percent."

G.      Section 41-31-110 of the 1976 Code is amended to read:
     "Section 41-31-110.      Whenever any person or other legal entity has in any manner succeeded to or has acquired substantially all or a distinct and severable portion of the business of another, as provided in Sections 41-31-100 and 41-31-120, the base rates of contributions are computed as follows:
     (a)      If the successor is not already an employer at the time of the acquisition, the base rate of contributions applicable to the predecessor employer with respect to the period immediately preceding the date of acquisition, if there is only one predecessor employer, shall apply to the successor employer for the remainder of the calendar year.  The base rate for the subsequent calendar year is computed based upon the employment benefit experience record of the predecessor or upon the combined employment benefit experience record of the predecessor and the successor, if applicable, as of June thirtieth of the year in which the acquisition occurred.
     (b)      If the successor is not already an employer at the time of the acquisition and there is more than one transferring employer with a different base rate, the successor employer is assigned the base rate of that transferring employer who has the highest base rate with the base rate being applicable until the end of the quarter in which the succession occurs.
     (c)      If the successor is already an employer at the time of the acquisition, the base rate of contributions applicable at the time of the acquisition to the successor employer shall continue to be applicable until the end of the quarter in which succession occurs.
For the purposes of subsections items (b) and (c), the base rate as assigned continues in effect until the first day of the next calendar quarter immediately following the acquisition, at which time the commission shall compute a base rate based upon the combination of that portion of the employment benefit experience record acquired from the predecessor with the employment benefit experience record of the successor, subject to the provisions of this article, which base rate is applicable to the successor from the first day of the quarter for the remainder of the calendar year.  If the acquisition occurred prior to July first, the base rate for the subsequent calendar year is computed based upon the combined employment benefit experience record as of June thirtieth of the year in which the acquisition occurred;  if the acquisition occurred subsequent to June thirtieth, the base rate for the subsequent calendar year is computed based upon the combined employment benefit experience record as of December thirty-first.  All base rates thereafter are computed upon the basis of the combined employment benefit experience record and at such time as provided in Section  41-31-40."

H.      Section 41-31-670(2) of the 1976 Code is amended to read:

     "(2)            Any nonprofit organization which has elected to become liable for payments in lieu of contributions under the provisions of Sections 41-31-620 and 41-31-630 and thereafter terminates the election shall become an employer liable for the payments of contributions upon the effective date of the termination but no such employer's base rate thereafter may be less than two and sixty-four hundredths percent until there have been twenty-four consecutive calendar months of coverage after so becoming liable for the payment of contributions.  If the employer has been an employer liable for the payment of contributions prior to election to become liable for payments in lieu of contributions the balance in the experience rating account of the employer as of the termination date of the election to become liable for payments in lieu of contributions is transferred to the new experience rating account then established for the employer."

TO AMEND SECTION 4-12-30, AS AMENDED, OF THE 1976 CODE, RELATING TO ELIGIBILITY FOR THE FEE IN LIEU OF TAXES, SO AS TO REDUCE FROM FIVE MILLION DOLLARS TO ONE MILLION DOLLARS THE MINIMUM INVESTMENT THRESHOLD FOR ELIGIBILITY FOR THE FEE IN A COUNTY WITH AVERAGE UNEMPLOYMENT OF AT LEAST TWICE THE STATE AVERAGE DURING THE LAST TWO CALENDAR YEARS; AND TO AMEND SECTION 12-44-30, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO REDUCE FROM FIVE MILLION DOLLARS TO ONE MILLION DOLLARS THE MINIMUM INVESTMENT THRESHOLD FOR ELIGIBILITY FOR THE FEE IN A COUNTY WITH AVERAGE UNEMPLOYMENT OF AT LEAST TWICE THE STATE AVERAGE DURING THE LAST TWO CALENDAR YEARS.

A.      Section 4-12-30(B)(3) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

     "(3)        The minimum level of investment must be at least five million dollars and must be invested within the time period provided in subsection (C)(2).  If a county has an average annual unemployment rate of at least twice the state average during each of the last two calendar years, the minimum level of investment is one million dollars."

B.      Section 12-44-30(14) of the 1976 Code, as added by Act 149 of 1997, is amended to read:

     "(14)       'Minimum investment' means a project which results in a total investment by a sponsor of not less than five million dollars within the investment period.  If a county has an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, the minimum investment is one million dollars."

TO AMEND SECTION 11-43-160 OF THE 1976 CODE, RELATING TO SOURCES OF FUNDING FOR THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK, SO AS TO PHASE IN OVER FOUR YEARS BEGINNING JUNE 15, 2000, THE CREDITING OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES AND PENALTIES NOT ALREADY CREDITED TO THE STATE HIGHWAY ACCOUNT OF THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK TO THAT ACCOUNT, AND TO AMEND SECTION 56-3-910, AS AMENDED, RELATING TO THE DISPOSITION OF MOTOR VEHICLES LICENSING AND REGISTRATION FEES, SO AS TO CONFORM THE CREDITING OF THESE REVENUES TO THE PROVISIONS OF THIS SECTION.

A.      Section 11-43-160(B) of the 1976 Code, as added by Act 148 of 1997, is amended to read:

     "(B)      Beginning in fiscal year 1998-99, The revenues collected pursuant to Sections 56-3-660 and 56-3-670 Chapter 3 of Title 56 and placed in the state highway account, as created by this chapter, must be used to provide capital for the bank."
B.      Section 56-3-910 of the 1976 Code, as amended by Act 148 of 1997, is further amended to read:

     "Section 56-3-910.      (A)      All fees and penalties collected by the department under the provisions of this chapter shall must be placed in the state general fund distributed as provided in subsection (B) of this section except for fees and penalties collected pursuant to Sections 56-3-660 and 56-3-670, all of which must be placed in the state highway account of the South Carolina Transportation Infrastructure Bank.
     (B)            Beginning in fiscal year 1998-99, one-half of the revenues are remitted to the bank in fiscal year 1998-99, and the entirety of the revenue is remitted to the bank in fiscal year 1999-00 and thereafter.  Fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited as provided in the following schedule based on the actual date of receipt by the Department of Public Safety:

            Fees and Penalties      General Fund of      State Highway Account of the
             Collected After            of the State            South Carolina Transportation
                                   Infrastructure Bank

            June 14, 2000      75 percent      25 percent
            June 14, 2001      50 percent      50 percent
            June 14, 2002      25 percent      75 percent
            June 14, 2003        0 percent      100 percent"
C.      This section takes effect July 1, 1999.

TO AMEND SECTION 11-43-160 OF THE 1976 CODE, RELATING TO SOURCES OF FUNDING FOR THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK, SO AS TO REVISE THE CONTRIBUTION TO THE BANK BY THE DEPARTMENT OF TRANSPORTATION FROM A MAXIMUM ANNUAL CONTRIBUTION OF THREE PERCENT OF FUNDS APPROPRIATED FOR THE CONSTRUCTION AND MAINTENANCE OF STATE HIGHWAYS TO AN AMOUNT NOT TO EXCEED THE REVENUE PRODUCED BY ONE CENT A GALLON OF THE TAX ON GASOLINE AND TO DELETE SPECIFIC PURPOSES FOR THE USE OF THE CONTRIBUTION.

A.      Section 11-43-160(A)(1) of the 1976 Code, as added by Act 148 of 1997, is amended to read:

     "(1)            an annual contribution set by the board of up to three percent of the funds appropriated for the construction and maintenance of state highways, however, the contribution must be used to match federal capitalization grants to the bank and to provide capital for the state accounts of the bank an amount not to exceed revenues produced by one cent a gallon of the tax on gasoline imposed pursuant to Section 12-28-310;"

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 12-6-1140, AS AMENDED, OF THE 1976 CODE, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW A THREE THOUSAND DOLLAR DEDUCTION FOR QUALIFYING VOLUNTEER FIREFIGHTERS AND RESCUE SQUAD MEMBERS, AND TO AMEND THE 1976 CODE BY ADDING SECTION 23-9-190 SO AS TO ESTABLISH A PERFORMANCE-BASED POINT SYSTEM FOR VOLUNTEER FIREFIGHTERS AND RESCUE SQUAD MEMBERS UNDER THE ADMINISTRATION OF THE STATE FIRE MARSHAL USED TO DETERMINE ELIGIBILITY FOR THE TAX DEDUCTION ALLOWED BY THIS SECTION.

A.      Section 12-6-1140 of the 1976 Code, as last amended by Act 419 of 1998, is further amended by adding an appropriately numbered item at the end to read:

     "(  )            Three thousand dollars for a volunteer firefighter or rescue squad member.  Only a volunteer earning a minimum number of points pursuant to Section 23-9-190 is eligible for this deduction."

B.      Article 1, Chapter 9, Title 23 of the 1976 Code is amended by adding:

     "Section 23-9-190.      (A)            The State Fire Marshal shall establish a performance-based point system for volunteer firefighters and rescue squad members.  Members receiving annually a minimum number of points set by the Fire Marshal are eligible for the deduction allowed pursuant to Section 12-6-1140.  Points must be awarded for a year as follows:
           (1)      Participation in approved training, including:
                 (a)      Certified interior firefighter;
                 (b)      Emergency vehicle driver training;
                 (c)      Pump operations;
                 (d)      Incident command systems;
                 (e)      Rural water supply;
                 (f)      Automobile extrication;
                 (g)      Certified instructor training;
                 (h)      Certified inspector training;
                 (i)      Certified public fire education training;
                 (j)      Officer training.
           (2)      Possessing a commercial or Class E driver's license;
           (3)      Participation in first aid/medical training such as:
                 (a)      First responder;
                 (b)      EMT--basic;
                 (c)      EMT--intermediate;
                 (d)      Paramedic.
           (4)      Participation in public fire education programs;
           (5)      Attendance at meetings;
           (6)      Station staffing; and
           (7)      Volunteer response.
     (B)      The Fire Marshal shall, in consultation with the South Carolina State Firemen's Association:
           (1)      Develop a standardized form and recordkeeping system and provide a master copy of all information and forms to each fire department and rescue squad in the State;
           (2)      Provide training to the various fire chiefs or rescue squad leaders on the use of the forms and the outline of the program;
           (3)      Advertise the availability of the program.
     (C)      The local fire chief/rescue squad leader shall:
           (1)      Provide written records to each member by January 31 of the year following the applicable tax year that shows the points obtained by each member for the previous tax year;
           (2)      Maintain a copy of records for each member for at least seven years;
           (3)      Certify the report for each member."

C.      This section is effective for taxable years beginning after 1999.

TO AMEND SECTION 12-10-35 OF THE 1976 CODE, RELATING TO THE INCOME TAX MORATORIUM APPLICABLE IN CERTAIN COUNTIES FOR A QUALIFYING BUSINESS, SO AS TO ADD A COUNTY WHICH IS ONE OF THE THREE LOWEST PER CAPITA INCOME COUNTIES BASED ON THE AVERAGE OF SUCH INCOME IN THE THREE MOST RECENT YEARS TO THOSE COUNTIES IN WHICH A QUALIFYING BUSINESS IS ELIGIBLE FOR THE MORATORIUM.

A.      Section 12-10-35 of the 1976 Code, as added by Act 419 of 1998, is amended to read:

     "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 (1) with an average annual unemployment rate of at least twice the state average during each of the last two completed calendar years, or (2) which is one of the three lowest per capita income counties based on the average of the three most recent years of average per capita income data, 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 1998.

TO AMEND ARTICLE 1, CHAPTER 11, TITLE 8 OF THE 1976 CODE, RELATING TO STATE OFFICERS AND EMPLOYEES, BY ADDING SECTION 8-11-186 SO AS TO REQUIRE A STATE AGENCY TO REPORT AN INTERIM NEW FULL-TIME EMPLOYMENT POSITION TO THE APPROPRIATE SENATE FINANCE AND HOUSE OF REPRESENTATIVES WAYS AND MEANS SUBCOMMITTEES.

A.      Article 1, Chapter 11, Title 8 of the 1976 Code is amended by adding:

     "Section 8-11-186.      A state agency shall report to the appropriate Senate Finance and House of Representatives Ways and Means subcommittees an interim new full-time employment position when authorization is requested from the Budget and Control Board.  The report must include, but not be limited to, justification of need for the position and a detailed explanation of the source of funding."

B.      This section takes effect July 1, 1999.

TO AMEND ARTICLE 1, CHAPTER 11, TITLE 8 OF THE 1976 CODE, RELATING TO STATE OFFICERS AND EMPLOYEES, BY ADDING SECTION 8-11-187 SO AS TO REQUIRE A STATE AGENCY TO REPORT A FULL-TIME EMPLOYMENT POSITION TRANSFERRED TO OR RECEIVED FROM ANOTHER STATE AGENCY TO THE APPROPRIATE SENATE FINANCE AND HOUSE OF REPRESENTATIVES WAYS AND MEANS SUBCOMMITTEES.

A.      Article 1, Chapter 11, Title 8 of the 1976 Code is amended by adding:

     "Section 8-11-187.      A state agency shall report to the appropriate Senate Finance and House of Representatives Ways and Means subcommittees a full-time employment position transferred to or received from another state agency.  The report must include, but not be limited to, justification for the transfer and a detailed explanation of the source of funding."

B.      This section takes effect July 1, 1999.

TO AMEND SECTIONS 9-1-1790 AND 9-11-90, BOTH AS AMENDED, OF THE 1976 CODE, RELATING TO THE MAXIMUM AMOUNT WHICH MAY BE EARNED WITHOUT AFFECTING RETIREMENT BENEFITS BY RETIREES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM WHO RETURN TO COVERED EMPLOYMENT, SO AS PERMANENTLY TO INCREASE THE MAXIMUM TO TWENTY-FIVE THOUSAND DOLLARS IN A FISCAL YEAR, TO REQUIRE AN EMPLOYER TO NOTIFY THE SYSTEM ON HIRING A RETIREE AND TO REQUIRE THE EMPLOYER TO PAY THE EMPLOYER CONTRIBUTIONS ON AMOUNTS PAID TO RETIREES, AND TO DEDUCT UNPAID CONTRIBUTIONS FROM STATE PAYMENTS OTHERWISE DUE THE EMPLOYER IF THE EMPLOYER FAILS TO MAKE THE REQUIRED CONTRIBUTION; AND TO REPEAL SECTION 9-1-1600 RELATING TO A LIMITED EXEMPTION FROM THE EARNINGS LIMITATION BY A TEACHER OR OTHER EMPLOYEE ESPECIALLY SKILLED IN SCIENTIFIC KNOWLEDGE.

A.      The General Assembly finds that:
     (1)      educational improvement is the primary issue in this State and that teaching experience is one of the keys to educational improvement;
     (2)      South Carolina is faced with a teacher shortage;
     (3)      incentives, and funding for these incentives, for rewarding and retaining experienced teachers are vital to maintaining a professional teaching core;
     (4)      other areas within state and local government also can benefit from the retention of experienced professional employees.

B.      Section 9-1-1790 of the 1976 Code, as last amended by Act 189 of 1989, is further amended to read:

     "Section 9-1-1790.      (A)      A retired member of the system may return to employment covered by the system and earn up to nine thousand five hundred twenty-five thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system.  If the retired member continues in service after having earned nine thousand five hundred twenty-five thousand dollars in a fiscal year, his retirement allowance must be discontinued during his period of service in the remainder of the fiscal year.  If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply.  The provisions of this section do not apply to an employee or member of the system who has retired mandatorily because of age pursuant to Section 9-1-1530.  If an employer fails to notify the system of the engagement of a retired member to perform services, the employer shall reimburse the system for all benefits wrongly paid to the retired member.
     (B)      An employer shall pay to the system the employer contribution for active members prescribed by law with respect to any retired member engaged to perform services for the employer, regardless of whether the retired member is a full-time or part-time employee, a temporary or permanent employee, an independent contractor, or the employee of another legal entity.  If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State."

C.      Section 9-11-90(4) of the 1976 Code, as last amended by Act 189 of 1989, is further amended to read:

     "(4)(a)      Notwithstanding the provisions of subsections (1) and (2) of this section, a retired member of the system may return to employment covered by the system and earn up to nine thousand five hundred twenty-five thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system.  If the retired member continues in service after having earned nine thousand five hundred twenty-five thousand dollars in a fiscal year, his retirement allowance must be discontinued during the period of service in the remainder of the fiscal year.  If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply.  The provisions of this section do not apply to an employee or member of the system who has retired mandatorily because of age pursuant to Section 9-1-1530.  If an employer fails to notify the system of the engagement of a retired member to perform services, the employer shall reimburse the system for all benefits wrongly paid to the retired member.
           (b)      An employer shall pay to the system the employer contribution for active members prescribed by law with respect to any retired member engaged to perform services for the employer, regardless of whether the retired member is a full-time or part-time employee, a temporary or permanent employee, an independent contractor, or the employee of another legal entity.  If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State."

D.      Section 9-1-1600 of the 1976 Code is repealed.

E.      This section takes effect July 1, 1999.

TO AMEND SECTION 12-6-1170, AS AMENDED, OF THE 1976 CODE, RELATING TO THE RETIREMENT INCOME DEDUCTION AND THE TAXABLE INCOME DEDUCTION ALLOWED INDIVIDUAL TAXPAYERS WHO HAVE ATTAINED AGE SIXTY-FIVE, SO AS TO INCREASE THE TAXABLE INCOME DEDUCTION ALLOWED INDIVIDUAL TAXPAYERS WHO HAVE ATTAINED AGE SIXTY-FIVE FROM ELEVEN THOUSAND FIVE HUNDRED DOLLARS TO FIFTEEN THOUSAND DOLLARS.

A.      Section 12-6-1170(B) of the 1976 Code, as last amended by Section 49 I.B., Part II, Act 419 of 1998, is further amended to read:

     "(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 fifteen 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 fifteen thousand five hundred dollars in the case when only one spouse has attained the age of sixty-five years and twenty-three thirty thousand dollars when both spouses have attained such age."

B.      This section applies for taxable years beginning after 1998.

TO ALLOW A STATE INDIVIDUAL INCOME TAX DEDUCTION OF RETIREMENT INCOME, NOT TO EXCEED THREE THOUSAND DOLLARS A YEAR OF SUCH INCOME, FOR TAXABLE YEARS 1993 THROUGH 1997, FOR TAXPAYERS WHO ELECTED TO DEFER A RETIREMENT INCOME DEDUCTION UNTIL AGE SIXTY-FIVE OR WHO FAILED TO MAKE SUCH AN ELECTION.

     (A)            Regardless of an election made pursuant to Section 12-6-1170 of the 1976 Code to defer until age sixty-five a retirement income deduction, as that section applied for taxable years 1993 through 1997, or in the alternative, in case of a failure to make such an election, a South Carolina individual income taxpayer who received retirement income in one or more of those taxable years and who for one or more of those years claimed no retirement income deduction with respect to that retirement income is allowed a deduction from South Carolina taxable income of retirement income received in such a year not to exceed three thousand dollars.
     (B)            For purposes of this section, "retirement income" has the meaning provided in Section 12-6-1170(4) of the 1976 Code as this section applied in taxable years 1993 through 1997.
     (C)            Notwithstanding the provisions of Section 12-54-85(F) of the 1976 Code relating to the timeliness of claims for refunds and for taxable years 1993, 1994, and 1995 only, the period within which such claims are timely filed is extended through April 15, 2000, for taxpayers filing a claim pursuant to this section.

TO AMEND SECTION 12-36-90, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DEFINITION OF "GROSS PROCEEDS OF SALES" FOR PURPOSES OF THE STATE SALES AND USE TAX, SO AS TO EXEMPT FROM THAT DEFINITION THE SALES PRICE ON SALES WHICH ARE UNCOLLECTIBLE, TO PROVIDE FOR CREDIT FOR TAXES PAID ON UNCOLLECTIBLE AMOUNTS, AND TO PROVIDE FOR LATER PAYMENT OF TAXES ON AMOUNTS SUBSEQUENTLY COLLECTED.

A.      Section 12-36-90(2) of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding an appropriately lettered item at the end to read:

     "(  )            the sales price, not including sales tax, of property on sales which are actually charged off as bad debts or uncollectible accounts for state income tax purposes.  A taxpayer who pays the tax on the unpaid balance of an account which has been found to be worthless and is actually charged off for state income tax purposes may take credit for the tax paid on a return filed pursuant to this chapter, except that if an amount charged off is later paid in whole or in part to the taxpayer, the amount paid must be included in the first return filed after the collection and the tax paid."

B.      This section applies for debt incurred after 1999.

TO AMEND SECTION 9-9-60, AS AMENDED, OF THE 1976 CODE, RELATING TO RETIREMENT AND RETIREMENT BENEFITS UNDER THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, SO AS TO INCREASE THE MULTIPLIER FOR RETIRED MEMBERS OF THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY FROM 4.82 PERCENT TO 5.89 PERCENT, EFFECTIVE JULY 1, 1999.

A.      Section 9-9-60(2), of the 1976 Code, as amended by Act 189, Part II, Section 60E of 1989, is further amended to read:

     "(2)            Effective July 1, 1989 1999, a retired member shall receive a monthly retirement allowance which is equal to one-twelfth of four and eighty-two five and eighty-nine hundredths percent of earnable compensation multiplied by the number of years of his the member's credited service prorated for periods less than a year."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 43-5-1135, AS AMENDED, OF THE 1976 CODE, RELATING TO THE GOAL TO RECRUIT AND HIRE INTO PUBLIC SECTOR JOBS COVERED BY THE SOUTH CAROLINA RETIREMENT SYSTEM PERSONS RECEIVING FAMILY INDEPENDENCE OR FOOD STAMP ASSISTANCE, SO AS TO REQUIRE AGENCIES TO REPORT THESE HIRES TO THE SOUTH CAROLINA DEPARTMENT OF SOCIAL SERVICES RATHER THAN TO THE OFFICE OF HUMAN RESOURCES OF THE STATE BUDGET AND CONTROL BOARD.

A.      Section 43-5-1135 of the 1976 Code, as last amended by Act 133 of 1997, is further amended to read:

     "Section 43-5-1135.      Each agency which is a member of the South Carolina Retirement System shall establish recruitment and hiring goals which shall target ten percent of all jobs requiring a high school diploma or less to be filled with family independence or food stamp recipients.  A question concerning receipt of family independence benefits or food stamps may be added to the state employment application for purposes of targeting these applicants.  Each agency annually shall report to the State Office of Human Resources South Carolina Department of Social Services the number of family independence and food stamp recipients employed in comparison to the established goal."

B.      This section takes effect July 1, 1999.

TO AMEND THE 1976 CODE BY ADDING SECTION 8-19-15 SO AS TO REQUIRE ALL GRANT-IN-AID STATE AGENCIES REQUIRED BY FEDERAL LAW TO OPERATE UNDER MERIT PRINCIPLES IN PERSONNEL POLICIES AS A CONDITION OF RECEIVING FEDERAL GRANTS TO ESTABLISH THOSE MERIT POLICIES AND PROCEDURES NECESSARY TO ENSURE COMPLIANCE WITH THE FEDERAL MERIT PRINCIPLES REQUIREMENTS, AND TO REPEAL SECTIONS 8-19-10, 8-19-20, 8-19-30, 8-19-40, 8-19-50, 8-19-55, AND 8-19-60, ALL OBSOLETE PROVISIONS RELATING TO THE "SINGLE COOPERATIVE INTERAGENCY MERIT SYSTEM OF PERSONNEL ADMINISTRATION" ESTABLISHED FOR GRANT-AIDED AGENCIES IN THE STATE.

A.      Chapter 19, Title 8 of the 1976 Code is amended by adding:

     "Section 8-19-15.  A grant-in-aid agency required by federal law to operate under merit principles in the administration of its personnel programs as a condition of receiving federal grants, shall establish those policies and procedures necessary to assure compliance with the federal merit principles requirements."

B.      Sections 8-19-10, 8-19-20, 8-19-30, 8-19-40, 8-19-50, 8-19-55, and 8-19-60 of the 1976 Code are repealed.

C.      This section takes effect July 1, 1999.

TO AMEND THE 1976 CODE BY ADDING SECTION 8-11-197 SO AS TO PROVIDE THAT EMPLOYER-PAID REIMBURSEMENTS OF MILEAGE EXPENSES INCURRED IN THE COURSE OF OFFICIAL BUSINESS BY STATE OFFICERS AND EMPLOYEES MUST BE AT A PER MILE RATE THAT IS EQUAL TO THE STANDARD BUSINESS MILEAGE RATE ESTABLISHED BY THE INTERNAL REVENUE SERVICE AS THAT RATE IS PERIODICALLY ADJUSTED.

A.             Article 1, Chapter 11, Title 8 of the 1976 Code is amended by adding: B.

     "Section 8-11-197.      Employer-paid reimbursements paid to a state officer or employee for mileage expenses incurred in the performance of official duties must be paid at a per mile rate that is equal to the standard business mileage rate established by the Internal Revenue Service as that rate is periodically adjusted by the Internal Revenue Service."

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 1-1-820 OF THE 1976 CODE RELATING TO THE CONTENTS OF A STATE AGENCY'S ACCOUNTABILITY REPORT, SO AS TO ADD THE CRITERIA FROM THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD AND TO REVISE THE REPORTING OF PERFORMANCE MEASURES.

A.             Section 1-1-820 of the 1976 Code, as added by Act 145 of 1995, is amended to read: B.

     "Section 1-1-820.      The annual accountability report required by Section 1-1-810 must contain the criteria for Performance Excellence of the Malcolm Baldrige National Quality Award and the agency's or department's mission, objectives to accomplish the mission, and performance measures that show the degree to which objectives are being met current level of performance, trends over time, and benchmark comparisons."

B.      This section takes effect July 1, 1999.

TO AMEND SECTIONS 8-11-160 AND 8-11-165, AS AMENDED, OF THE 1976 CODE, RELATING TO THE AGENCY HEAD SALARY COMMISSION AND THE MATTERS RELATING TO AGENCY HEAD SALARIES, SO AS TO REQUIRE JUSTIFICATION FOR AN AGENCY'S RECOMMENDATIONS TO THE COMMISSION BASED PRIMARILY ON THE AGENCY'S ANNUAL ACCOUNTABILITY REPORT, AND TO ELIMINATE THE EVERY THREE-YEAR REQUIREMENT FOR THE SALARY AND FRINGE BENEFIT SURVEY FOR AGENCY HEADS, SO AS TO REQUIRE THE SURVEY WHEN REQUESTED BY THE STATE BUDGET AND CONTROL BOARD AT THE RECOMMENDATION OF THE COMMISSION, AND TO ADD ADDITIONAL STAFF TO THE COMMISSION FROM EXISTING STAFF FROM THE GOVERNOR'S OFFICE, SENATE FINANCE COMMITTEE, AND HOUSE WAYS AND MEANS COMMITTEE.
A.      Section 8-11-160 of the 1976 Code, as added by Act 20 of 1987, is amended to read:

     "Section 8-11-160.      All boards and commissions are required to submit justification of an agency head's performance and salary recommendations based primarily on the agency's annual accountability report required pursuant to Section 1-1-810 to the Agency Head Salary Commission.  This commission consists of four appointees of the chairman of the House Ways and Means Committee, four appointees of the chairman of the Senate Finance Committee, and three appointees of the Governor with experience in executive compensation.
     Salary increases for agency heads must be based on recommendations by each agency board or commission to the Agency Head Salary Commission and their recommendations to the General Assembly."

B.      The first undesignated paragraph of Section 8-11-165 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
     "It is the intent of the General Assembly that a salary and fringe benefit survey for agency heads must be conducted by the Office of Human Resources of the Budget and Control Board every three years when requested by the State Budget and Control Board upon the recommendation of the Agency Head Salary Commission.  The staff of the office and designated staff of the Governor's Office, Senate Finance Committee, and the House Ways and Means Committee shall serve as the support staff to the Agency Head Salary Commission."
C.      This section takes effect July 1, 1999.

TO AMEND SECTION 56-1-2070, AS AMENDED, OF THE 1976 CODE, RELATING TO THE PROHIBITION AGAINST AND EXCEPTIONS TO THE PROVISIONS RELATING TO THE DRIVING OF A COMMERCIAL MOTOR VEHICLE WITHOUT A VALID COMMERCIAL DRIVER LICENSE, SO AS TO SUBSTITUTE "SOUTH CAROLINA MILITARY DEPARTMENT" FOR "NATIONAL GUARD", TO REVISE THE CIRCUMSTANCES IN WHICH MILITARY PERSONNEL MAY OPERATE A GOVERNMENT-OWNED MOTOR VEHICLE WITHOUT A COMMERCIAL DRIVER LICENSE, AND TO PROVIDE THAT MILITARY PERSONNEL MAY OPERATE A STATE-OWNED MOTOR VEHICLE WITHOUT A COMMERCIAL DRIVER LICENSE.

A.      Section 56-1-2070(C)(1) of the 1976 Code, as amended by Act 258 of 1998, is further amended to read:

     "(1)            active duty military personnel and reservists and National Guard South Carolina Military Department members who are on active duty acting in an official capacity while operating vehicles owned by the United States or the state government, required by the owner of the vehicle to have a valid state driver's license;"

B.      This section takes effect July 1, 1999.

TO AMEND SECTION 59-67-510 OF THE 1976 CODE, RELATING TO THE USE OF SCHOOL BUS EQUIPMENT FOR THE TRANSPORTATION OF INDIVIDUALS FOR SPECIAL EVENTS AND EDUCATIONAL PURPOSES, SO AS TO PROVIDE THAT SCHOOL BUS EQUIPMENT MAY BE USED FOR TRANSPORTATION IN CONNECTION WITH OFFICIAL FUNCTIONS BY THE SOUTH CAROLINA MILITARY DEPARTMENT.

A.      Section 59-67-510 of the 1976 Code, is amended to read:

     "Section 59-67-510.            County boards of education may permit the use of school bus equipment for transportation in connection with athletic events, boys' and girls' clubs, special events in connection with the schools, official functions by the South Carolina Military Department, and such other educational purposes as may appear proper to the respective boards."

B.      This section takes effect July 1, 1999.

TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-115, SO AS TO REQUIRE PROCEEDS OF THE SALE OF REAL PROPERTY TITLED TO OR UNDER THE CARE AND CONTROL OF THE STATE BUDGET AND CONTROL BOARD TO BE DEPOSITED TO THE CREDIT OF THE SINKING FUND AND USED BY THE BOARD TO ACQUIRE AND MAINTAIN FACILITIES OWNED BY IT FOR THE USE AND OCCUPANCY OF STATE DEPARTMENTS AND AGENCIES.

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

     "Section 1-11-115.      All proceeds from the sale of real property titled to or subject to the care and control of the State Budget and Control Board must be deposited to the credit of the Sinking Fund and used by the board for the acquisition and maintenance of facilities owned by it for the use and occupancy of state departments and agencies."

B.      This section takes effect July 1, 1999.

TO AMEND SECTIONS 1-11-720 AND 9-1-10, BOTH AS AMENDED, OF THE 1976 CODE, RELATING TO ENTITIES ELIGIBLE TO PARTICIPATE IN THE STATE HEALTH AND DENTAL INSURANCE PLAN AND DEFINITIONS FOR EMPLOYEE AND EMPLOYER FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO MAKE ELIGIBLE LEGISLATIVE CAUCUS COMMITTEES AND THEIR EMPLOYEES FOR THESE BENEFITS.

A.      Section 1-11-720(A) of the 1976 Code, as last amended by Act 317 of 1998, is further amended by adding an appropriately numbered item at the end to read:

     "(  )            legislative caucus committees as defined in Section 8-13-1300(21)."

B.      Section 9-1-10(4) of the 1976 Code, as last amended by Act 317 of 1998, is further amended by adding an appropriately lettered item at the end to read:

     "(  )            an employee of a legislative caucus committee as defined in Section 8-13-1300(21)."

C.      Section 9-1-10(5) of the 1976 Code, as last amended by Act 317 of 1998, is further amended to read:

     "(5)            'Employer' means the State, a county board of education, a district board of trustees, a city board of education, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of the State by which a teacher or employee is paid; the term 'employer' also includes a county, municipality, or other political subdivision of the State, or an agency or department thereof, which has been admitted to the system under the provisions of Section 9-1-470, a service organization referred to in paragraph (4) of this section, an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20, and a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services, and a legislative caucus committee as defined in Section 8-13-1300(21);"

D.      This section takes effect July 1, 1999.

         All Acts or parts of Acts inconsistent with any of the provisions of Part I of this Act are hereby suspended for Fiscal Year 1999-2000.
         All Acts or parts of Acts inconsistent with any of the provisions of Part II of this Act are hereby repealed.
         Except as otherwise specifically provided herein, this Act shall take effect immediately upon its approval by the Governor.