South Carolina General Assembly

General Appropriations Bill H. 4775 for the fiscal year beginning July 1, 2000


PART II

PERMANENT PROVISIONS

SECTION 1

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

SECTION 2

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SECTION 3

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SECTION 4

TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT FROM THE TAX SALES OF CLOTHING, CLOTHING ACCESSORIES, FOOTWEAR, SCHOOL SUPPLIES, AND COMPUTERS DURING A PERIOD BEGINNING 12:01 A.M. ON THE FIRST FRIDAY IN AUGUST AND ENDING AT TWELVE MIDNIGHT THE FOLLOWING SUNDAY, TO PROVIDE EXCEPTIONS, AND TO REQUIRE THE DEPARTMENT OF REVENUE BEFORE JULY TENTH OF EACH YEAR TO PUBLISH AND MAKE AVAILABLE TO THE PUBLIC AND RETAILERS A LIST OF THE ARTICLES QUALIFYING FOR THIS EXEMPTION.

Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

     "(   )(a)      sales taking place during a period beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday of:
                 (i)            clothing;
                 (ii)      clothing accessories including, but not limited to, hats, scarves, hosiery, and handbags;
                 (iii)      footwear;
                 (iv)      school supplies including, but not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators;
                 (v)      computers, printers and printer supplies, and computer software.
           (b)      The exemption allowed by this item does not apply to:
                 (i)       sales of jewelry, cosmetics, eyewear, wallets, watches;
                 (ii)      sales of furniture;
                 (iii)      a sale of an item placed on layaway or similar deferred payment and delivery plan however described;
                 (iv)      rental of clothing or footwear;
                 (v)      a sale or lease of an item for use in a trade or business.
           (c)      Before July tenth of each year, the department shall publish and make available to the public and retailers a list of those articles qualifying for the exemption allowed by this item."

SECTION 5

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SECTION 6

TO AMEND THE 1976 CODE BY ADDING SECTION 8-23-110 SO AS TO DIRECT THE DEFERRED COMPENSATION COMMISSION TO ENSURE THAT APPROPRIATE DEFERRED COMPENSATION PLAN DOCUMENTS ALLOW EMPLOYER CONTRIBUTIONS, TO ALLOW POLITICAL SUBDIVISIONS OF THE STATE, INCLUDING SCHOOL DISTRICTS, PARTICIPATING IN STATE DEFERRED COMPENSATION PLANS OR IN SUCH PLANS OF OTHER PROVIDERS TO MAKE EMPLOYER CONTRIBUTIONS, AND TO PROVIDE FOR MATCHING OR OTHER CONTRIBUTIONS BY THE STATE TO STATE EMPLOYEES PARTICIPATING IN SUCH PLANS TO THE EXTENT FUNDS ARE APPROPRIATED FOR THIS PURPOSE, AND TO PROVIDE THAT THE AMOUNT, TERMS, AND CONDITIONS OF THE CONTRIBUTIONS MUST BE DETERMINED BY THE STATE BUDGET AND CONTROL BOARD.

A.      The 1976 Code is amended by adding:

     "Section 8-23-110.      (A)      The commission shall ensure that plan documents governing deferred compensation plans administered by the commission permit employer contributions to the extent allowed under the Internal Revenue Code.
     (B)      Political subdivisions of the State, including school districts, participating in deferred compensation plans administered by the commission or such plans offered by other providers may make matching or other contributions on behalf of their participating employees.
     (C)      As an additional benefit for state employees, and to the extent funds are appropriated for this purpose, the State shall make matching or other contributions on behalf of state employees participating in the deferred compensation plans offered by the commission or such plans offered by other providers in an amount and under the terms and conditions prescribed for such contributions by the State Budget and Control Board."

B.      This section takes effect July 1, 2000.

SECTION 7

TO AMEND SECTION 12-6-40, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

Section 12-6-40(A) of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:

     "(A)      'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1998 1999, and includes the effective date provisions contained therein."

SECTION 8

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SECTION 9

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SECTION 10

TO AMEND SECTION 59-149-50, OF THE 1976 CODE, RELATING TO THE ELIGIBILITY REQUIREMENTS FOR A LIFE SCHOLARSHIP, SO AS TO DELETE THE REQUIREMENT THAT STUDENTS MUST PASS ALL COURSES REQUIRED FOR A STAR DIPLOMA AND ADJUST FISCAL YEAR 2000-2001 APPROPRIATIONS TO REFLECT THIS CHANGE IN ELIGIBILITY; TO REPEAL SECTIONS 59-39-105 AND 59-39-190 RELATING TO THE REQUIREMENTS AND THE PROMULGATION OF REGULATIONS FOR THE STAR DIPLOMA, AND TO REPEAL SECTION 59-103-175, RELATING TO INCLUDING STAR DIPLOMA INFORMATION IN HIGH SCHOOL AND HIGHER EDUCATION AWARENESS COUNSELING, ALL SO AS TO REPEAL THE STAR DIPLOMA PROGRAM.

A.      Section 59-149-50 of the 1976 Code, as added by Act 418 of 1998, is amended to read:

     "Section 59-149-50.      (A)      To be eligible for a LIFE Scholarship, a student must be either a member of a class graduating from a high school located in this State on or after May, 1995, a home school student who has successfully completed a high school home school program in this State in the manner required by law on or after May, 1995, or a student graduating from a preparatory high school outside this State on or after May, 1995, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, and these students must also meet the requirements of subsection (B). In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May, 1998, the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale, and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better beginning with school year 2000-2001, and 1100 or better beginning with school year 2002-2003; provided that if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B).
     (B)      Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60.
     (C)      Students who were LIFE Scholarship recipients seeking a degree at such a public or independent institution of this State during their freshman or other year who failed to earn a cumulative 3.0 at the end of the term they attempted the requisite number of hours required by subsection (B) may regain eligibility if their cumulative grade average is a 3.0 at the end of the term they have attempted at least sixty hours if they are a sophomore or ninety hours if they are a junior.
     (D)      By the year 2000, students graduating from high school to be eligible for a LIFE Scholarship must have passed all courses required for a STAR diploma."

B.      Sections 59-39-105, 59-39-190, and 59-103-175 of the 1976 Code are repealed.

C.      The funds appropriated for the LIFE Scholarship program in the general appropriations act of 2000-2001 must be adjusted to include the additional students qualifying for a LIFE Scholarship pursuant to the provisions of Section 59-149-50 as amended by subsection (A).

D.      This section takes effect July 1, 2000.

SECTION 11

TO AMEND SECTION 9-1-1795 OF THE 1976 CODE, RELATING TO AN EXCEPTION TO THE EARNINGS LIMITATION APPLICABLE TO COVERED EMPLOYMENT OF A RETIRED CERTIFIED TEACHER, SO AS TO CHANGE FROM JULY 15 TO MAY 31 OF EACH YEAR THE TIME BEFORE WHICH A MEMBER OF THE SYSTEM MAY NOT BE CONSIDERED FOR EMPLOYMENT BY A SCHOOL DISTRICT.

     A.      Section 9-1-1795(B) of the 1976 Code, as added by Section 82, Part II, Act 100 of 1999, is amended to read:

     "(B)      For the provisions of this section to apply, the Department of Education must review and approve, from the documentation provided by the school district, that no qualified, non-retired nonretired member is available for employment in the position and that the member selected for employment meets the requirements of this section. However, a school district may not consider a member of the system for employment before July 15 May 31 of each year. After approval is received from the Department of Education, school districts must notify the State Board of Education of the engagement of a retired member as a teacher and the department must notify the State Retirement System of their exemption from the earnings limitation. If the employing district fails to notify the department of the engagement of a retired member as a teacher, the district shall reimburse the system for all benefits wrongly paid to the retired member."

B.      This section takes effect July 1, 2000.

SECTION 12

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SECTION 13

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SECTION 14

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SECTION 15

TO AMEND SECTION 59-118-30, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS IN REGARD TO THE SOUTH CAROLINA ACADEMIC ENDOWMENT INCENTIVE ACT WHERE MATCHING STATE FUNDS ARE PROVIDED TO QUALIFYING COLLEGES AND UNIVERSITIES FOR ENDOWMENT GIFTS UNDER CERTAIN CONDITIONS, SO AS TO REVISE THE DEFINITION OF "QUALIFYING COLLEGE OR UNIVERSITY" TO INCLUDE TWO-YEAR STATE-SUPPORTED INSTITUTIONS INCLUDING COLLEGE OR UNIVERSITY REGIONAL CAMPUSES.

Section 59-118-30(1) of the 1976 Code, as last amended by an act of 2000 bearing ratification number 318, is further amended to read:

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

SECTION 16

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SECTION 17

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SECTION 18

TO AMEND THE 1976 CODE BY ADDING SECTION 51-13-765, SO AS TO ALLOW THE PATRIOT'S POINT DEVELOPMENT AUTHORITY TO MAINTAIN SPECIAL ACCOUNTS WHICH RETAIN AND CARRY OVER FUNDS FROM YEAR TO YEAR, TO HOLD ALL SPECIAL ACCOUNT EARNINGS AND INTEREST FOR THE BENEFIT OF THE AUTHORITY, AND TO REQUIRE ANNUAL REPORTS OF RECEIPTS AND EXPENDITURES FROM THESE ACCOUNTS.

A.      Article 11, Chapter 13, Title 51 of the 1976 Code is amended by adding:

     "Section 51-13-765.(A)      The Patriot's Point Development Authority may maintain special accounts controlled by the authority and made up of funds received by the authority.  The authority may retain and carry over these funds it has on account from fiscal year to fiscal year.  The receipt and expenditure of funds in these accounts must be reported in an annual fiscal audit of the authority.
     (B)      All earnings and interest accrued on accounts held by the authority must be retained and expended by the authority to carry out its purpose and mission."

B.      This section takes effect July 1, 2000.

SECTION 19

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SECTION 20

TO AMEND SECTION 56-3-2332 OF THE 1976 CODE, RELATING TO THE ISSUE OF THE STANDARD LICENSE PLATE TO A VEHICLE MANUFACTURER FOR VEHICLES USED IN EMPLOYEE BENEFIT PROGRAMS, TESTING, OR PROMOTIONAL PURPOSES, SO AS TO INCREASE THE ANNUAL REGISTRATION FEE FROM SIX HUNDRED NINETY-SEVEN DOLLARS AND FORTY-SIX CENTS TO EIGHT HUNDRED EIGHTY DOLLARS.

A.      Section 56-3-2332(B) of the 1976 Code, as added by Act 155 of 1997, is amended to read:

     "(B)      The annual registration fee for this plate is six eight hundred ninety-seven eighty dollars and forty-six cents.
           (1)      The plates issued in connection with an employee benefit program may be used only on vehicles provided for the applicant's employees.  In the application, the manufacturer shall notify the department in which county the employee assigned the vehicle resides.  Twenty dollars and fifty cents of the fee must be credited to the general fund of the State and six eight hundred seventy-seven fifty-nine dollars and forty-six fifty cents must be remitted to the county noted on the application.  Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes.  If the employee resides outside this State, the fee must be credited pro rata to all other counties due amounts under this section.  The names and addresses of the employees are not required to be submitted to the department, but the department may require the documentation it determines necessary to ensure compliance with the provisions of this section.
           (2)      The plates issued in connection with testing, distribution, evaluation, and promotion, not to exceed fifty plates, may be used only for those purposes.  Twenty dollars and fifty cents of the fee must be credited to the general fund of the State and six eight hundred seventy-seven fifty-nine dollars and forty-six fifty cents must be remitted to the county in which the principal facility of the manufacturer is located.  Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes.  The department may require the documentation it determines necessary to ensure compliance with the provisions of this subsection."

B.      This section takes effect January 1, 2001.

SECTION 21

TO AMEND SECTION 1-11-710, AS AMENDED, OF THE 1976 CODE, RELATING TO DUTIES OF THE STATE BUDGET AND CONTROL BOARD IN ESTABLISHING AND MAINTAINING THE STATE GROUP HEALTH, DENTAL, LIFE, AND DISABILITY INSURANCE PLANS, SO AS TO REQUIRE A PUBLIC HEARING BEFORE THE BOARD MAY INCREASE EMPLOYEE PAID PREMIUMS OR REDUCE BENEFITS IN THE HEALTH AND DENTAL INSURANCE PLANS, TO PROHIBIT ANY SUCH ADJUSTMENTS IN THE HEALTH AND DENTAL INSURANCE PLANS EXCEPT WHILE THE GENERAL ASSEMBLY IS MEETING IN REGULAR SESSION, AND TO ADJUST EMPLOYEE CONTRIBUTIONS, DEDUCTIBLES, AND COPAYMENTS IN THE STATE HEALTH INSURANCE PLAN EFFECTIVE JANUARY 1, 2001.

A.        Section 1-11-710(A)(3) of the 1976 Code, as added by Act 364 of 1992, is amended to read:

           "(3)      (a)      adjust the plan, benefits, or contributions of any but the health and dental insurance plans, at any time to insure ensure the fiscal stability of the system.;
                       (b)      adjust the health or dental insurance plan, or both, the benefits of, or contributions for these plans to ensure the stability of these plans.  When an adjustment requires increased employee contributions or has the effect of reducing benefits, a public hearing must be held on the adjustments and no such adjustments may be made except while the General Assembly is meeting in regular session."

B.      The State Budget and Control Board shall make the following adjustments in the state health plan effective January 1, 2001:
           (1)      all employee-paid premiums are increased by five dollars a month;
           (2)      individual deductibles in the economy and standard plans are increased by fifty dollars and family deductibles in both plans are increased by one hundred dollars;
           (3)      the coinsurance amount in the standard plan is revised from fifteen to twenty percent and revised in the economy plan from twenty to twenty-five percent.
           All other elements of the plans including, but not limited to, the fifteen hundred dollar "cap" and the elements of the prescription drug benefit must remain unchanged from the manner in which the plans operated on January 1, 2000, except that the "cap" on the prescription drug benefit is reduced from fifteen hundred dollars to one thousand dollars.


SECTION 22

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SECTION 23

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SECTION 24

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SECTION 25

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SECTION 26

TO AMEND SECTION 50-9-510, AS AMENDED, OF THE 1976 CODE, RELATING TO THE SALE OF CERTAIN HUNTING LICENSES, SO AS TO DELETE THE AUTHORITY OF THE DEPARTMENT OF NATURAL RESOURCES TO ISSUE A TEN-DAY NONRESIDENTIAL BIG GAME PERMIT.

Section 50-9-510(19) of the 1976 Code, as added by Act 100 of 1999, is further amended by deleting item (19) which reads:

     "(19)      In addition to the required nonresident hunter's license, a nonresident may purchase a statewide temporary permit for the privilege of hunting big game, including deer, bear, and turkey, for a period of ten consecutive days, at a cost of twenty-five dollars. One dollar of the permit cost may be retained by the agent issuing the permit."

SECTION 27

TO AMEND SECTION 59-31-360 OF THE 1976 CODE, RELATING TO WAIVER OF TEXTBOOK RENTAL CHARGES BY THE STATE DEPARTMENT OF EDUCATION, SO AS TO ALLOW THE WAIVER FOR KINDERGARTEN, AS WELL AS GRADES ONE THROUGH TWELVE.

Section 59-31-360 of the 1976 Code is amended to read:

     "Section 59-31-360.      The State Board of Education shall waive textbook rental charges for grades one kindergarten through twelve of the public schools, to the end that basal textbooks adopted and approved by the board for use in the public schools shall must be supplied to the school children of the State without charge.  Title to books so provided shall remain in the State Board of Education.  Each school district shall fully utilize all books owned by it to effect the purposes of this section."

SECTION 28

TO AMEND THE 1976 CODE BY ADDING SECTION 59-47-120 SO AS TO ALLOW THE SCHOOL FOR THE DEAF AND THE BLIND TO REQUIRE TEACHING OR CLINICAL STAFF EMPLOYED BY THE SCHOOL WHO ATTEND ADVANCED TRAINING PAID FOR BY THE SCHOOL TO CONTRACT WITH THE SCHOOL TO REMAIN IN EMPLOYMENT FOR A MINIMUM OF ONE YEAR BEYOND COMPLETION OF THE TRAINING, AND TO REIMBURSE THE SCHOOL FOR EXPENSES INCURRED FOR THE TRAINING IF THE EMPLOYEE BREACHES THE CONTRACT, AND TO PROVIDE FOR THE DEFINITION OF "ADVANCED TRAINING" BY REGULATION.

The 1976 Code is amended by adding:

     "Section 59-47-120.      (A)      Teaching or clinical staff employed by the school who attend advanced training paid for by the school may be required to enter a contract with the school to remain in the employment of the school for a minimum of one year beyond completion of the training.  If an employee breaches this contract, the employee shall reimburse the school for all expenses incurred by the school in providing this training for the employee.
     (B)      For purposes of this section, 'advanced training' means an educational course or program as defined by the school in regulation."

SECTION 29

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SECTION 30

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SECTION 31

TO AMEND CHAPTER 3, TITLE 23 OF THE 1976 CODE, RELATING TO THE STATE LAW ENFORCEMENT DIVISION, BY ADDING ARTICLE 12 SO AS TO ENACT "THE NATIONAL CRIME PREVENTION AND PRIVACY COMPACT ACT".

A.      Chapter 3, Title 23 of the 1976 Code is amended by adding:

"Article 12

National Crime Prevention and Privacy Compact

     Section 23-3-1010.      (A)      In order to facilitate the authorized interstate exchange of criminal history information for noncriminal justice purposes including, but not limited to, background checks for the licensing and screening of employees and volunteers under the National Child Protection Act of 1993, and to implement the National Crime Prevention and Privacy Compact, 42 U.S.C. Section 14616, the General Assembly approves and ratifies the compact.
     (B)      The State Law Enforcement Division is the repository of criminal history records for purposes of the compact and must do all things necessary or incidental to carry out the compact.
     (C)      The Chief of SLED, or his designee, is the state's compact officer and must administer the compact within the State.  SLED may adopt rules and establish procedures for the cooperative exchange of criminal history records between the State and federal government and between the State and other party states for use in noncriminal justice cases.
     (D)      The state's ratification of the compact remains in effect until legislation is enacted which specifically renounces the compact pursuant to Article IX of 42 U.S.C. Section 14616.
     (E)      The compact and this section do not affect or abridge the obligations and responsibilities of SLED under other provisions of law and do not alter or amend the manner, direct or otherwise, in which the public is afforded access to criminal history records under state law."

B.      Monies appropriated in Section 56B, Part IA (Crime Information Systems, Other Operating Expenses) of the 2000-2001 general appropriations act must be used to implement the provisions of this section.

SECTION 32

TO AMEND SECTION 9-9-50, AS AMENDED, OF THE 1976 CODE, RELATING TO CREDITED SERVICE IN THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, SO AS TO DELETE CREDITED SERVICE PROVISIONS SPECIFIC TO MEMBERS OF THE GENERAL ASSEMBLY AND TO PROVIDE THAT GENERAL ASSEMBLY MEMBERS MAY ESTABLISH SERVICE CREDIT AT THE SAME COST AND UNDER THE SAME CONDITIONS AS MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM MAY ESTABLISH SERVICE.

A.      Section 9-9-50(4) of the 1976 Code, as amended by Act 439 of 1998, is further amended to read:

     "(4)      Any member with two or more years of credited service shall receive additional credited service for the period of his military service, at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, provided he was discharged or separated from the military service under conditions other than dishonorable, and  upon paying to the system, by a single payment before his retirement or death or by such other method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of such military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his becoming a member of the General Assembly the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. No member shall receive credit for more than six years of military service. Military service includes service in the national guard;  provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment for each year of service credited. The prohibition on duplication of benefits applicable to credit established for federal employment pursuant to Section 9-1-1140 also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title.  A member of the General Assembly may establish service credit in the system for the same types of service, at the same cost, and under the same conditions, as members of the South Carolina Retirement System may establish service in the South Carolina Retirement System pursuant to Section 9-1-1140."

B.      This section takes effect on January 1, 2001.

SECTION 33

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SECTION 34

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SECTION 35

TO AMEND THE 1976 CODE BY ADDING SECTION 1-1-1035 SO AS TO PROVIDE THAT NO STATE FUNDS OR MEDICAID FUNDS SHALL BE EXPENDED TO PERFORM ABORTIONS, EXCEPT FOR THOSE ABORTIONS AUTHORIZED BY FEDERAL LAW UNDER THE MEDICAID PROGRAM.

The 1976 Code is amended by adding:

     "Section 1-1-1035.      No state funds or Medicaid funds shall be expended to perform abortions, except for those abortions authorized by federal law under the Medicaid program."

SECTION 36

TO AMEND THE 1976 CODE BY ADDING SECTION 8-23-115 SO AS TO PROVIDE THAT AS AN ADDITIONAL BENEFIT FOR STATE EMPLOYEES, PARTICIPATING IN THE DEFERRED COMPENSATION PLAN, THE DEFERRED COMPENSATION COMMISSION SHALL ENSURE THAT CONTRACTS ENTERED INTO WITH THIRD PARTY VENDORS INCLUDE PROVISIONS THAT DIRECT THE VENDOR TO PROVIDE CONSULTATIVE SERVICES FOR PLAN PARTICIPANTS.

The 1976 Code is amended by adding:

     "Section 8-23-115.      As an additional benefit for state employees participating in a deferred compensation plan, the Deferred Compensation Commission shall ensure that contracts entered into with third party vendors include provisions that direct the vendor to provide consultative services for plan participants.  The vendor must make available for consultation individuals who are registered with the State of South Carolina as broker-dealer agents, investment advisors, or investment advisor representatives, or who are exempt from state registration."

SECTION 37

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SECTION 38

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SECTION 39

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SECTION 40

TO ENACT THE SOUTH CAROLINA CAPITAL GAIN HOLDING PERIOD REFORM ACT BY AMENDING SECTION 12-6-1150 OF THE 1976 CODE, RELATING TO THE STATE INCOME TAX DEDUCTION FOR A PORTION OF NET CAPITAL GAIN, SO AS TO ELIMINATE THE SEPARATE STATE HOLDING PERIOD OF TWO YEARS TO QUALIFY FOR THE DEDUCTION, REQUIRE THE HOLDING PERIOD FOR THE STATE DEDUCTION TO CONFORM TO THE FEDERAL HOLDING PERIOD FOR LONG-TERM CAPITAL GAIN, AND TO DELETE OBSOLETE LANGUAGE.

A.      This section may be cited as the South Carolina Capital Gain Holding Period Reform Act.

B.      Section 12-6-1150 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

     "Section 12-6-1150.      (A)      Individuals, estates, and trusts are allowed a deduction from South Carolina taxable income equal to twenty-nine forty-four percent of net capital gain recognized in this State during a taxable years year beginning in 1991, 1992, 1993, or 1994 and forty-four percent for taxable years beginning after 1994.  In the case of estates and trusts, the deduction is applicable only to income taxed to the estate or trust or individual beneficiaries and not income passed through to nonindividual beneficiaries.
     (B)(1)      South Carolina income includes capital gains and losses from partnerships and 'S' Corporations.
           (2)      Net capital gain is as defined in the Internal Revenue Code, as amended through December 31, 1988, except that the required holding period is two or more years Section 1222 and related sections."

C.      This section takes effect upon approval by the Governor and applies for taxable years beginning after 2000.

SECTION 41

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SECTION 42

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SECTION 43

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SECTION 44

TO AMEND THE 1976 CODE BY ADDING SECTION 59-125-95 SO AS TO PROVIDE THAT AS EXISTING CAPACITY ALLOWS, WINTHROP UNIVERSITY MAY OFFER GRADUATE-LEVEL IN-STATE TUITION TO RESIDENTS OF THE MEMBER COUNTIES OF THE CAROLINAS PARTNERSHIP FOR ECONOMIC DEVELOPMENT, AS LONG AS NO NEW SECTION OF ANY SCHEDULED CLASS IS REQUIRED TO BE OPENED TO ACCOMMODATE SUCH STUDENTS AND NO QUALIFIED SOUTH CAROLINA GRADUATE STUDENT SHALL LOSE A POSITION IN A CLASS DUE TO A NORTH CAROLINA STUDENT.

Chapter 125, Title 59 of the 1976 Code is amended by adding:

     "Section 59-125-95.      As existing capacity allows, Winthrop University may offer graduate-level in-state tuition to residents of the member counties of the Carolinas Partnership for Economic Development, as long as no new section of any scheduled class is required to be opened to accommodate such students and no qualified South Carolina graduate student shall lose a position in a class due to a North Carolina student."

SECTION 45

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SECTION 46

TO AMEND SECTION 59-48-20, AS AMENDED, OF THE 1976 CODE, RELATING TO THE BOARD OF TRUSTEES OF THE SPECIAL SCHOOL OF SCIENCE AND MATHEMATICS, SO AS TO PROVIDE FOR SIX ADDITIONAL MEMBERS OF THE BOARD.

Section 59-48-20 of the 1976 Code, as last amended by Act 248 of 1991, is further amended to read:

     "Section 59-48-20.      (A)      The school is under the management and control of a board of trustees consisting of eleven members, as follows:
           (1)      one member from each congressional district appointed by the Governor;
           (2)      two members appointed from this State at large by the Governor;
           (3)      the Chairman of the Joint Legislative Committee to Study the State's Public Education System, ex officio, or his designee;
           (4)      the State Superintendent of Education, ex officio, or his designee;
           (5)      the Executive Director of the Commission on Higher Education, ex officio, or his designee.
     Members appointed by the Governor shall serve for four years and until their successors are appointed and qualify, except that of those first appointed, the members representing the First, Second, and Third Congressional Districts and one at-large member shall serve for two years and until their successors are appointed and qualify.  Members shall receive mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions.
     In his appointments, the Governor shall seek to obtain the best qualified persons from the business, industrial, and educational communities, including mathematicians and scientists.
     The board of trustees shall explore use of the facilities of Coker College for the school's campus.
     (B)      The Board of Trustees of the Special School of Science and Mathematics shall also include the following six additional members:
           (1)      the president of the South Carolina Governor's School of Science and Mathematics Foundation, Inc., to serve ex officio;
           (2)      the provost or vice president for academic affairs from each of the following higher education research institutions to serve ex officio:
                 (a)      Clemson University;
                 (b)      the University of South Carolina;
                 (c)      the Medical University of South Carolina.  The provost or vice president for academic affairs of each of these three institutions shall serve as nonvoting members of the board;
           (3)      two members appointed from the State at large by the Governor to serve for terms of four years each and until their successors are appointed and qualify.  Vacancies shall be filled by appointment in the manner of original appointment for the remainder of the unexpired term."

SECTION 47

TO AMEND TITLE 44, OF THE 1976 CODE, RELATING TO HEALTH BY ADDING CHAPTER 130, SO AS TO ENACT THE "SOUTH CAROLINA SENIORS' PRESCRIPTION DRUG PROGRAM ACT", WHICH INCLUDES PROVISIONS TO DEFINE "PRESCRIPTION DRUG" FOR PURPOSES OF THE PROGRAM; TO ESTABLISH A PROGRAM ADMINISTERED BY THE OFFICE OF INSURANCE SERVICES OF THE STATE BUDGET AND CONTROL BOARD TO PROVIDE FINANCIAL ASSISTANCE IN PURCHASING PRESCRIPTION DRUGS TO RESIDENTS OF THIS STATE WHO HAVE ATTAINED AGE SIXTY-FIVE YEARS WHO ARE INELIGIBLE FOR MEDICAID OR ANY OTHER PRESCRIPTION DRUG BENEFITS AND WHOSE ANNUAL INCOME DOES NOT EXCEED ONE HUNDRED FIFTY PERCENT OF THE FEDERAL POVERTY LEVEL; TO REQUIRE SEMIANNUAL REPORTS TO THE GOVERNOR AND THE GENERAL ASSEMBLY FOR THE EVALUATION OF THE PROGRAM; TO AUTHORIZE EXPANSION OF THE PROGRAM UNDER CERTAIN CONDITIONS; TO PROVIDE THAT THE PROGRAM MUST BE FUNDED FROM PROCEEDS OF THE TOBACCO SETTLEMENT; AND TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO SEEK A MEDICAID WAIVER TO EXPAND PRESCRIPTION DRUG SERVICES TO MEDICARE BENEFICIARIES.

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

"CHAPTER 130

The South Carolina Seniors'

Prescription Drug Program Act

     Section 44-130-10.      This chapter may be cited as the 'South Carolina Seniors' Prescription Drug Program Act'.

     Section 44-130-20.      For purposes of this chapter:
     (1)      'Prescription drugs' means outpatient prescription drugs, that have been approved as safe and effective by the United States Food and Drug Administration including insulin syringes, insulin needles, and insulin.  'Prescription drugs' do not include experimental drugs and over the counter pharmaceutical products.
     (2)      'Program' means the South Carolina Seniors Prescription Drug Program created pursuant to Section 44-130-30.

     Section 44-130-30.      There is created within the Office of Insurance Services of the State Budget and Control Board the South Carolina Seniors' Prescription Drug Program.  Beginning January 1, 2001, this program must provide financial assistance for purchasing prescription drugs to senior citizens who are ineligible for or do not have insurance coverage or other assistance through federal, state, or private programs for these purchases.

     Section 44-130-40.      This program must be administered by the State Budget and Control Board through its Office of Insurance Services.  The office may designate or enter into contracts with other entities to assist in this administration.  The program may include:
     (1)      co-payments and deductibles based on income;
     (2)      incentives for the use of generic drugs; and
     (3)      prospective and retrospective utilization review, clinical management, and other administrative techniques used in the management of the State Health Insurance Plan in order to reduce drug interactions, overutilizations, therapeutic duplications, or early refills.
     When requested by the office, other state agencies shall provide assistance or information necessary in the administration of this program.

     Section 44-130-50.      A person eligible to participate for this program must:
     (1)      be a South Carolina resident who has attained the age of sixty-five years;
     (2)      have resided in South Carolina at least six consecutive months before participation in the program;
     (3)      be ineligible for Medicaid prescription benefits;
     (4)      not have any pharmacy benefits or coverage from any governmental or private insurance program providing such benefits;
     (5)      have an annual income that does not exceed one hundred fifty percent of the federal poverty level.
     Priority must be given to applicants without Medicare supplements or other third party benefits or coverage during the six months before application.

     Section 44-130-60.      The Office of Insurance Services shall maintain data to allow evaluation of the cost effectiveness of the program and submit semiannual reports to the Governor and General Assembly summarizing beneficiary demographics, utilization, provider dispensing experience, and any other information needed to evaluate the costs and benefits of the prescription drug program.

     Section 44-130-70.      (A)      Notwithstanding the provisions of Section 44-130-50(5), upon analysis of eligibility and enrollment information compiled as of January 1, 2001, the Office of Insurance Services may expand coverage under this program to seniors whose incomes do not exceed one hundred seventy five percent of poverty.
     (B)      If seniors served by this program become eligible for substantially the same benefits under a federal program, the Office of Insurance Services may reevaluate the program benefits and funding and may increase the program up to two hundred percent of poverty for senior citizens who otherwise are eligible for the program if program funding will support the expansion.
     (C)      This program may only be expanded if funds are available through appropriations, interest earned, and other revenue that may have been received including, but not  limited to, federal funding.

     Section 44-130-80.      The program must be funded from proceeds received by the State in the settlement agreement and related documents, between the State and leading United States tobacco manufacturers dated November 23, 1998."

B.      The Department of Health and Human Services must apply, no later than June 30, 2001, to the Federal Health Care Financing Administration for a Medicaid waiver to expand prescription drug services to Medicare beneficiaries.  If federal approval is obtained, the department shall assist the State Budget and Control Board Office of Insurance Services in accessing the impact of the federal funds on the South Carolina Seniors' Prescription Drug Program, as established in Section 44-130-30 of the 1976 Code, as added in subsection A. of this Section, and must expand the program as provided for in Section 44-130-70(B) if funds are available to support the expansion.

SECTION 48

TO AMEND THE 1976 CODE BY ADDING SECTION 44-37-40 SO AS TO ENACT THE "UNIVERSAL NEWBORN HEARING SCREENING AND INTERVENTION ACT" INCLUDING PROVISIONS TO REQUIRE NEWBORN HEARING SCREENING AND THE PROVISION OF SCREENING INFORMATION AND TO PROVIDE AN EXCEPTION; TO ESTABLISH EVALUATION AND INTERVENTION PROCEDURES AND SERVICES; TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO ESTABLISH SCREENING REPORTING PROCEDURES FOR HOSPITALS, AUDIOLOGISTS, AND EARLY INTERVENTIONISTS; TO REQUIRE THE DEPARTMENT TO ESTABLISH MONITORING AND MEASUREMENT OF THE SCREENINGS AND INTERVENTIONS EFFECTIVENESS; TO REQUIRE THE DEPARTMENT TO ESTABLISH THE NEWBORN HEARING SCREENING AND INTERVENTION ADVISORY COUNCIL; TO REQUIRE THE DEPARTMENT TO ESTABLISH REIMBURSEMENT PROCEDURES FOR EXPENSES INCURRED; AND TO PROVIDE THAT RESPONSIBILITIES OF THE DEPARTMENT UNDER THIS SECTION MUST BE FUNDED FROM PROCEEDS OF THE TOBACCO SETTLEMENT AGREEMENT; AND BY ADDING SECTION 44-7-78, SO AS TO PROVIDE THAT AN ENTITY THAT OPERATES A HEALTH CARE FACILITY REQUIRING A CERTIFICATE OF NEED MAY DEVELOP AND OPERATE FACILITIES, PROGRAMS, AND SERVICES IN ANY LOCATION WHERE SUCH FACILITIES, PROGRAMS, OR SERVICES SUPPORT THE ENTITY OR PROVIDE SERVICES TO RESIDENTS IF ALL OTHER STATUTORY AND REGULATORY REQUIREMENTS ARE MET.

A.      The 1976 Code is amended by adding:

     "Section 44-37-40.      (A)      This section may be cited as the 'Universal Newborn Hearing Screening and Intervention Act'.
     (B)      For purposes of this section:
           (1)      'Advisory council' means the Newborn Hearing Screening and Intervention Advisory Council.
           (2)      'Audiologist' means an individual licensed to practice audiology by the South Carolina Board of Examiners in Speech-Language Pathology and Audiology.
           (3)      'Audiologic evaluation' means an evaluation consisting of procedures to assess the status of the auditory system; to establish the site of an auditory disorder; the type and degree of hearing loss, and the potential effects of hearing loss on communication; and to identify appropriate treatment and referral options.  Referral options for evaluation should include linkage to state Part C 'Individuals with Disabilities Education Act' coordinating agencies or other appropriate agencies, medical evaluation, hearing aid/sensory aid assessment, audiologic rehabilitation treatment, national and local consumer, self-help, parent and education organizations, and other family centered services.
           (4)      'Auditory habilitation' means intervention which includes the use of procedures, techniques, and technologies to facilitate the receptive and expressive communication abilities of a child with hearing loss.
           (5)      'Birth admission' means the time after birth that the newborn remains in the hospital nursery before discharge.
           (6)      'Commissioner' means the Commissioner of the South Carolina Department of Health and Environmental Control.
           (7)      'Department' means the South Carolina Department of Health and Environmental Control.
           (8)      'Early intervention' means providing appropriate services for a child with hearing loss and ensuring that the family of the child is provided comprehensive, consumer-oriented information about the full range of family support, training, information services, and communication options and is given the opportunity to consider the full range of educational and program placements and options for this child.
           (9)      'Hearing loss' for newborns and neonates means failure to pass the brainstem auditory evoked response performed at the audiologic evaluation.  Current hearing screening technology detects levels of hearing loss as low as 35 decibels.
           (10)      'Hearing screening' means newborn and infant hearing screening consisting of objective physiologic procedures to detect possible hearing loss and to identify newborns and infants who, after rescreening, require further audiologic and medical evaluations.
           (11)      'Infant' means a child twenty-nine days to twenty-four months old.
           (12)      'Medical intervention' means the process by which a physician provides medical diagnosis and direction for medical or surgical treatment options for hearing loss or related medical disorders associated with hearing loss.
           (13)      'Newborn' means a child up to twenty-eight days old.
           (14)      'Normal hearing' for newborns and infants is 0-15 decibels hearing level.  Any hearing level greater than 15 decibels can adversely affect speech and language development.  The greater the hearing level the greater the adverse impact on speech and language development.
           (15)      'Parent' means a natural parent, step-parent, adoptive parent, legal guardian, or other legal custodian of a child.
           (16)      Part C of 'Individuals with Disabilities Education Act' means the federal 'Early Intervention Program for Infants and Toddlers with Disabilities and Developmental Delay Act' which encourages exemplary practices that lead to improved teaching and learning experiences for children with developmental delay, and that can result in more productive independent adult lives, including employment.
     (C)(1)      Beginning no later than June 30, 2001, newborn hearing screenings must be conducted  during birth admission on all newborns born in hospitals in this State using procedures recommended or approved by the department.  However, when a newborn is delivered in a hospital with an average of less than one hundred deliveries a year, the screening is not required, but the parents must be given the information required pursuant to subsection (C)(3).
           (2)      Beginning no later than April 1, 2001, every hospital in this State shall provide educational information for the parents of newborns born in that hospital concerning the hearing screening procedure and the importance of the screening.  Education may not be considered a substitute for the hearing screening.
           (3)      When a newborn is delivered in a hospital where the hearing screening is not required pursuant to subsection (C)(1) or somewhere other than a hospital, the parents must be instructed on the importance of a hearing screening and of having the screening performed within one month of the child's birth date.  Parents also must be given information to assist them in having the screening performed.  The department shall determine the appropriate screening venue for newborns not receiving a hospital-conducted screening.
     (D)(1)      Newborns referred as a result of the screening process shall receive an audiologic evaluation by an audiologist and a medical evaluation by a physician or otolaryngologist, or both, as indicated.
           (2)      Newborns and infants referred as a result of the evaluation process shall receive medical intervention, audiologic habilitation, early intervention services, and augmentative hearing devices.
           (3)(a)      The department, upon consultation with the South Carolina Health Alliance, shall establish newborn hearing screening reporting procedures which must be followed by hospitals, audiologists, and early interventionists.
                 (b)      The department also shall establish procedures to monitor and measure the effectiveness of newborn and infant hearing screening and intervention and shall report annually to the General Assembly and to participating hospitals.
                 (c)      Subject to available appropriations, the department shall make reports required pursuant to this subsection available throughout the State, specifically to physicians whose practice includes the practice of obstetrics, neonatology, or the care of newborns and infants, to consumer groups, managed care organizations, other third party payers, and the media.
     (E)      The department shall establish the Newborn Hearing Screening and Intervention Advisory Council, consisting of representatives of agencies, professional disciplines, hospitals, and consumers to advise the department on matters related to the implementation of this section and duties of the department under this section.
     (F)      The department may promulgate regulations to the extent necessary to implement the provisions of this section.
     (G)      The department and the Department of Health and Human Services shall establish procedures for providing reimbursement for expenses incurred by entities providing newborn hearing screenings under this section.
     (H)      Responsibilities of the department under this section including, but not limited to, reimbursements authorized pursuant to subsection (G) must be funded from proceeds received by the State in the settlement agreement and related documents, between the State and leading United States tobacco manufacturers dated November 23, 1998."

B.      Article 1, Chapter 7, Title 44 of the 1976 Code is amended by adding:

     "Section      44-7-78.      Notwithstanding any other provision of law, an entity that operates a health care facility as defined in Section 44-7-130(10) may develop and operate facilities, programs, and services in any location where such facilities, programs, or services support the entity or provide services to residents in the area, provided all other statutory and regulatory requirements are met, including the State Certification of Need and Health Facility Licensure Act, Article 3, Chapter 7, Title 44 and related regulations promulgated by the department."

C.      This section takes effect July 1, 2000.

SECTION 49

TO AMEND TITLE 44 OF THE 1976 CODE BY ADDING CHAPTER 128 SO AS TO ENACT THE "SOUTH CAROLINA YOUTH SMOKING PREVENTION ACT", INCLUDING REQUIRING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO DEVELOP A YOUTH SMOKING PREVENTION PLAN WHICH MAY INCLUDE AWARDING GRANTS TO LOCAL AGENCIES, ORGANIZATIONS, AND ENTITIES, TO PROVIDE THAT THE RESPONSIBILITIES OF THE DEPARTMENT UNDER THIS CHAPTER MUST BE FUNDED FROM PROCEEDS RECEIVED FROM THE TOBACCO SETTLEMENT AGREEMENT, AND TO ESTABLISH THE SOUTH CAROLINA YOUTH SMOKING PREVENTION ADVISORY COMMISSION TO ADVISE THE DEPARTMENT IN THE IMPLEMENTATION OF THIS ACT AND PROVIDE FOR ITS MEMBERSHIP.

Title 44 of the 1976 Code is amended by adding:

"Chapter 128

South Carolina Youth Smoking Prevention Act

     Section 44-128-10.      This chapter may be cited as the 'South Carolina Youth Smoking Prevention Act'.

     Section 44-128-20.      (A)      The Department of Health and Environmental Control shall develop and implement a Youth Smoking Prevention Plan for the purpose of preventing and reducing cigarette smoking by minors.
     (B)      The Youth Smoking Prevention Plan must address prevention, cessation, and control of smoking by minors and may include but is not limited to:
           (1)      media campaigns;
           (2)      school based youth programs;
           (3)      community based youth programs;
           (4)      business, community, and school partnerships;
           (5)      programs focusing on the enforcement and administration of state minor related tobacco laws, including retailer education;
           (6)      surveillance and evaluations;
           (7)      chronic disease and health-related programs.
     (C)(1)      To assist in carrying out the purposes of the plan, the department may award youth smoking prevention grants to local agencies, organizations, and entities based on criteria developed by the department.
           (2)      As a condition for the receipt of funds under this chapter, a grantee shall agree to file a report with the advisory commission, as to the following:
                 (a)      amount received as a grant and the expenditures made with the proceeds of the grant;
                 (b)      a description of the program offered and the number of youths who participated in the program; and
                 (c)      specific elements of the program meeting the criteria set forth in the state plan.
     (D)      The state plan further shall provide for a grant for an annual statewide school-based survey to measure cigarette use and behaviors towards cigarette use by individuals in grades 6-12.  This survey shall:
           (1)      involve a statistically valid sample of the individuals in each grade from sixth through twelfth;
           (2)      not include any individual who is eighteen years of age or older; and
           (3)      be made available to the public, along with the resulting date, excluding respondent identities and respondent-identifiable date.

     Section 44-128-30.      The department shall report annually by January first of each year to the Governor, the Senate Finance Committee, and the House Ways and Means Committee on the activities and effectiveness of the Youth Smoking Prevention Plan.

     Section 44-128-40.      Responsibilities of the department under this chapter including, but not limited to, funding grants authorized pursuant to Section 44-128-20(C) must be funded from proceeds received by the State in the settlement agreement and related documents, between the State and leading United States tobacco manufacturers dated November 23, 1998.

     Section 44-128-50.      (A)      There is established the South Carolina Youth Smoking Prevention Advisory Commission to advise the department in the development, implementation, and evaluation of the State Youth Smoking Plan.
     (B)      Notwithstanding the provisions of Section 8-13-770, the membership of the advisory commission is as follows:
           (1)      two members appointed by the Speaker of the House of Representatives from the membership of the House of Representatives;
           (2)      two members appointed by the President Pro Tempore of the Senate from the membership of the Senate; and
           (3)      eleven members appointed by the Governor as follows:
                 (a)      one representative of the Department of Health and Environmental Control;
                 (b)      one representative of the Department of Alcohol and Other Drug Abuse Services;
                 (c)      three health professionals;
                 (d)      two youths between the ages of twelve and eighteen; and
                 (e)      five citizens of the State with knowledge, competence, experience, or interest in youth smoking prevention, or other relevant background including, but not limited to, youth education, public health, social science, and business expertise."

SECTION 50

TO AMEND SECTION 6-5-10, AS AMENDED, OF THE 1976 CODE, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS, SO AS TO PROVIDE THAT POLITICAL SUBDIVISIONS RECEIVING MEDICAID FUNDS APPROPRIATED BY THE GENERAL ASSEMBLY ARE AUTHORIZED TO UTILIZE APPROPRIATED FUNDS AND OTHER MONIES TO PARTICIPATE IN CERTAIN INVESTMENTS AND TO PROVIDE THAN NO MORE THAN FORTY PERCENT OF THE FUNDS AND OTHER MONIES MAY BE INVESTED IN THE MANNER PROVIDED HEREIN.

     "Section 6-5-10(a) of the 1976 Code, as last amended by Act 326 of 1990, is further amended by adding an appropriately numbered item to read:

     (  )      A political subdivision receiving Medicaid funds appropriated by the General Assembly in the annual general appropriations act may utilize appropriated funds and other monies generated by hospital operations to participate in principal protected investments in the form of notes, bonds, guaranteed investment contracts, debentures, or other contracts issued by a bank chartered in the United States or agency of a bank if chartered in the United States, financial institution, insurance company, or other entity which provides for full principal payment at the end of a contract term not to exceed twelve years if the issuer has received a rating in one of three highest general rating categories issued by no fewer than two nationally recognized credit rating organizations.  No more than forty percent of the appropriated funds and other monies generated by hospital operations may be invested in the manner provided in this item.  Revenue realized pursuant to these investments must be expended on health care services."

SECTION 51

DELETED

SECTION 52

TO AMEND TITLE 51, OF THE 1976 CODE, BY ADDING CHAPTER 18 TO ESTABLISH THE WAR BETWEEN THE STATES HERITAGE TRUST PROGRAM, TO AMEND SECTION 12-6-5060, RELATING TO CHARITABLE CONTRIBUTIONS ALLOWED ON STATE INDIVIDUAL INCOME TAX RETURNS, SO AS TO ALLOW CONTRIBUTIONS TO THE WAR BETWEEN THE STATES HERITAGE TRUST FUND, AND TO AMEND SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT PROPERTY HELD IN TRUST PURSUANT TO THE WAR BETWEEN THE STATES HERITAGE TRUST FUND.

A.      Title 51 of the 1976 Code is amended by adding:

"CHAPTER 18

War Between the States Heritage Trust Program

     Section 51-18-10.      The following words or phrases have the definition given unless clearly specified otherwise:
     (1)      'Commission' means the governing board of the War Between the States Heritage Trust Program.
     (2)      'Advisory board' means the War Between the States Heritage Trust Advisory Board.
     (3)      'Natural area' means an area of land or water, or a combination thereof, generally, but not necessarily, large in size.  Such an area may be in public or private ownership and shall contain landforms, or other unusual or outstanding scientific, educational, aesthetic, or recreational characteristics that are unique to and relatively undisturbed since the time period of the War Between the States.
     (4)      'Natural feature' means an area of land or water or a combination thereof, which is generally, but not necessarily, small in size.  Such area may be in public or private ownership and shall contain or consist of outstanding remnants or natural elements of geological formations, or objects of special scientific, educational, aesthetic, or recreational character, which are unique to and relatively undisturbed since the time period of the War Between the States.
     (5)      'Cultural area or feature' means an area or feature that provides an outstanding example of our historical or archeological heritage.  Such an area or feature shall be a site of special historic interest or contain outstanding remnants or elements of the way of life and significant events of our past so that through their preservation and the restoration of related existing structures, or the development of an historic area, as well as through study, investigation, and examination of the material remains in that life, a record may be preserved of the interrelationship and effect between man's activities and his surrounding environment.  A cultural area or feature may be one that is either publicly or privately owned.
     (6)      'War Between the States Heritage Preserve' means a natural or cultural area or feature which is 'dedicated' under this chapter.
     (7)      'War Between the States Heritage Site' means a natural or cultural feature that has been recognized as such through 'registration' under this chapter.
     (8)      'Dedicate or dedication' means the process by which any natural or cultural area or feature shall be established as a War Between the States Heritage Preserve in accordance with the procedures set out in Section 51-18-80.  Dedication may result from either of the following methods, but no power of eminent domain is hereby conferred or granted to the commission or the advisory board under this chapter:
           (a)      'Acquisition' means the establishment of a War Between the States Heritage Preserve whereby the owner of a natural or cultural area or feature transfers the fee simple interest therein to the commission for such purpose; or
           (b)      'Acceptance' means the establishment of a War Between the States Heritage Preserve whereby the owner of a natural or cultural area or feature transfers less than the fee simple interest therein to the commission for such purpose.  Examples are granting of a 'conservation or open space easement' or the transfer of title subject to a life estate or reverter.  Interests in real estate of a term of years shall not qualify for dedication under this chapter.
     (9)      'Register or registration' means the process by which the owner of a natural or cultural feature shall enter into a written agreement with the commission recognizing the unique and outstanding characteristics thereof in accordance with the procedures set out in Section 51-18-100.
     (10)      'Priority areas and features list' means the list made up of those areas and features recommended by the advisory board, and approved by the commission, under this chapter whose preservation is of primary importance to the goals and purposes of this chapter and which are, therefore, eligible to be included as War Between the States Heritage Preserves and Sites.
     (11)      'The War Between the States Heritage Trust Program' means the entire system established under this chapter to provide for the inventorying, preservation, use, and management of unique and outstanding natural or cultural areas and features in this State.
     (12)      'War Between the States Heritage Trust' means the legal trust that is created under Section 51-18-90.

     Section 51-18-20.      The General Assembly finds that as a part of the continuing growth of the population and the development of the economy of the State it is necessary and desirable that portions of the State rich in history be set aside as War Between the States Heritage Preserves and Sites and protected for the benefit of present and future generations, for once disturbed they cannot be wholly restored.  Such areas and features are irreplaceable as laboratories for historic and cultural research and as living museums where people may observe and enjoy examples of the lands, structures, and related artifacts that represent significant parts of our historical and cultural heritage.
     A coordinated and concerted program is needed to insure the maximum conservation of these resources through the establishment of a more effective and adequate official legal mechanism for identifying, recognizing, and protecting such areas for their outstanding characteristics.  While the preservation of all of these assets in their natural state is both impractical and often not necessarily in the total best interest of the State and the public, they exist in limited and decreasing quantities. The time is now for a decision to be made as to which of these areas and sites deserve increased protection and for selecting the most appropriate means for doing so.
     It is, therefore, the public policy of this State to secure for the people, both present and future generations, the benefits of an enduring resource of historically significant cultural areas and features by establishing a system of War Between the States Heritage Preserves and Sites; protecting this system; gathering and disseminating information regarding it; establishing and maintaining a listing of War Between the States Heritage Preserves and Sites; and otherwise encouraging and assisting in the preservation of natural and cultural areas and features of this State.

     Section 51-18-30.      The War Between the States Heritage Trust Program is created to achieve the following goals by protecting lands and making them available to state agencies, educational institutions, and public and private groups for the following purposes:
     (1)      for research in such fields as history, archeology, agriculture, forestry, paleontology, and similar fields by governmental employees, educational and scientific groups, as well as by private individuals;
     (2)      for the teaching of history, archeology, agriculture, forestry, paleontology, and other subjects;
     (3)      as cultural materials;
     (4)      as places of natural and cultural interests and beauty whereby through visitation the public may observe, value, and enjoy unique recreational opportunities of a type not generally available through the existing State Park System;
     (5)      to promote the understanding and appreciation of the aesthetic, historical, cultural, and scientific values of such areas and features by the people of the State;
     (6)      for the preservation and protection of War Between the States Heritage Preserves and Sites against modification or encroachment resulting from occupation, development, or other uses which would destroy their natural and cultural character; and
     (7)      as places for maintaining representative lands and related structures which illustrate periods, events, styles, and uses of the land in our state's historic and cultural heritage.

     Section 51-18-40.      There is created a War Between the States Heritage Trust Commission which must consist of nine members.  Three members must be appointed from the Senate by the President Pro Tempore of the Senate; three members must be appointed from the House of Representatives by the Speaker of the House; and three members must be appointed by the Governor with the advice and consent of the Senate, one at the recommendation of War Between the States historical groups such as Sons of Confederate Veterans and Daughters of the Confederacy, one at the recommendation of African-American historical groups such as Avery Institute, and one from historical, preservation, and archeological groups such as the South Carolina Historical Society and Daughters of the American Revolution.  The terms of the members shall be coterminous with the term of their appointing authority.  The commission shall elect a chairman from among its membership and such other officers as it shall deem necessary.

     Section 51-18-50.      The War Between the States Heritage Trust Commission shall have the following powers and duties:
     (1)      to select and employ a staff  which shall be primarily responsible for the administration of the War Between the States Heritage Trust Program;
     (2)      to accept and utilize such other staff and support services as the House, Senate, or Governor's Office may from time to time make available to the commission to assist in fulfilling its duties and responsibilities under this chapter;
     (3)      to maintain a public record of any inventories or lists established under this chapter;
     (4)      to work with owners, both public and private, in the development of proposals for the dedication and recognition of natural and/or cultural areas and features as War Between the States Heritage Preserves and Sites and keep the advisory board informed of the same in order that the advisory board may make recommendations to the commission, as provided under this chapter;
     (5)      to consult with and work in cooperation with the Department of Archives and History, the State Archeologist, the Department of Parks, Recreation and Tourism, and any other state, county, or local unit of government, or any private entity or group which is or should be directly involved in the War Between the States Heritage Trust Program, as well as in any particular efforts to preserve or protect any specific area or feature under the provisions of this chapter.  In all cases, the commission shall attempt to avoid duplication of effort with other agencies and groups and shall have no mandatory authority hereunder to require action by any such body;
     (6)      to serve as trustee of the trust created under this chapter and to carry out the powers, duties, and responsibilities thereunder;
     (7)      to supervise the establishment, updating and maintenance of a statewide inventory of the natural and cultural resources and the maintenance of a list of those areas and features selected or established under this chapter as priority areas and features or as War Between the States Heritage Preserves and Sites;
     (8)      to select from the recommendations of the advisory board those natural, manmade, and cultural features, the preservation of which is of primary importance to the goals and purposes of this chapter, and to classify such as priority areas and features;
     (9)      to select from the recommendations of the advisory board those priority areas and features which should be dedicated or recognized as War Between the States Heritage Preserves or Sites, and thereafter to establish as such through dedication or recognition;
     (10)      to select from the recommendations of the advisory board those War Between the States Heritage Preserves, interests therein, or portions thereof, deserving of protection under the War Between the States Heritage Trust and thereafter to transfer same into the corpus of the trust;
     (11)      to conduct public hearings on the question of whether any particular natural or cultural area or feature should be established as a War Between the States Heritage Preserve or Site, or on the uses or prohibited uses which shall apply to any area dedicated under the War Between the States Heritage Trust Program;
     (12)      to manage or provide for the management of War Between the States Heritage Preserves through the promulgation of rules and regulations designed to preserve the primary natural character of such areas or features and to provide the maximum public usage thereof which is compatible and consistent with the character of the area. Management duties and responsibilities may be assigned to any governmental or private group, with its consent, with respect to any particular War Between the States Heritage Preserve;
     (13)      to cooperate with and to enter into agreement with other state, federal, county, and local units of government, as well as private groups, for the promotion of the purposes of this chapter, including the carrying out of other requirements under federal and state law; and
     (14)      to report annually to the Governor and to the General Assembly as to the activities of the War Between the States Heritage Trust Program and its future plans and to make any specific recommendations which it feels, if implemented, would assist in achieving the goals and purposes of this chapter.

     Section 51-18-60.      The War Between the States Heritage Trust Advisory Board is hereby created to assist the commission in carrying out its duties and responsibilities under this chapter.  The advisory board shall consist of eleven members who shall be chosen as follows and shall elect from its membership a chairman:
     (1)      From the general public, six persons, one from each congressional district within the State, who shall be appointed by the Governor with the advice and consent of the Senate and serve for a term of six years.  These persons shall be residents of the State who are recognized experts in the history and archeology of the State who have demonstrated an interest in historical, cultural, and natural preservation of historical sites and who have a background in South Carolina history and/or African-American history and/or Confederate history.  The term 'expert' does not of necessity denote a professional but one learned and interested in the field.
     (2)      From state government, the following persons or their designees:
           (a)      the Chairman of the Board of the Department of Natural Resources;
           (b)      the Director of the South Carolina Department of Parks, Recreation and Tourism;
           (c)      the Chairman of the Board of  the Department of Archives and History;
           (d)      the Chairman of the Board of the State Museum Commission; and
           (e)      the Curator or Director of the Confederate Relic Room.
Provided, however, of the initial appointees under this section, that of the six persons appointed under item (1) above, two shall serve for a term of two years, two for a term of four years, and two for a term of six years.

     Section 51-18-70.      The War Between the States Heritage Trust Advisory Board shall have the following powers and duties:
     (1)      to review the inventories prepared and submitted by the commission and other state agencies, as well as other appropriate sources of information, and to recommend therefrom to the commission the selection of those areas and features as priority areas and features that it deems to be of primary importance to the goals and purposes of this chapter;
     (2)      to evaluate, review, and examine proposals of the commission and other state agencies, as well as citizen recommendations, for the dedication or recognition of specific areas and features as War Between the States Heritage Preserves and Sites, and from its expertise to recommend to the commission the dedication or recognition of such areas and features which it feels proper;
     (3)      to recommend to the commission any rules, regulations, management criteria, allowable uses, and such which the advisory board feels would be beneficial to carrying out the goals and purposes of this chapter;
     (4)      to assist in maintaining a list of areas and sites which through dedication become War Between the States Heritage Preserves or Sites and to make public information regarding their location, management, regulation, and permissible public uses and the like; and
     (5)      to utilize the resources of the agencies represented on the board to do research and investigation for inventory and assessment purposes, including the reasonable right of entry and inspection, and to disseminate information and recommendations pertaining to natural and related cultural areas and features.

     Section 51-18-80.      (A)      Upon recommendation of the advisory board and approval by the commission, any area or feature on the Priority Areas and Features List may be established as a War Between the States Heritage Preserve through the process of dedication.  In addition to the transfer of either the fee simple interest or a lesser interest therein such as an open space easement, the owner of any such area or feature must enter into a written Dedication Agreement with the commission whereby any restrictions, conditions, permitted and non-permitted uses of the area or feature involved are clearly stated.  Once the necessary deed, easement, or the like has been filed along with the Dedication Agreement in the real estate records for the county in which the area or feature is located, the process of dedication shall be complete and a War Between the States Heritage Preserve shall have formally been established.
     (B)      No area or feature of primarily cultural significance or character shall be dedicated without the approval of the commission. The following restrictions shall apply to all War Between the States Heritage Preserves:
           (1)      The primary dedication as a War Between the States Heritage Preserve shall be to preserve and protect the natural or cultural character of any area or feature so established.  The commission and its agents shall in all cases maintain the essential character of any area or feature dedicated, and as such they are hereby declared to be at their highest, best, and most important use for the public benefit.  No War Between the States Heritage Preserve shall be taken for any other public purpose unless the approval of both the commission and the Governor has been obtained.  In no case shall any War Between the States Heritage Preserve be taken for any private use.
           (2)      An acquisition by dedication shall be in perpetuity.
           (3)      In any case where an area or feature is dedicated as a War Between the States Heritage Preserve through acceptance of less than the fee simple interest therein, no management of such property shall be performed by state agencies or their employees and no public funds shall be utilized in the upkeep or general maintenance of such property; provided, in the case where public usage of such area or feature is compatible and consistent with the natural character of the property and the owner is agreeable to allow such, as defined under this chapter, reasonable costs of maintenance and management may be borne by the State.
           (4)      No acquisition of any area or feature as a War Between the States Heritage Preserve shall be allowed whereby the commission receives the fee simple interest in the property while the grantor or transferor retains the beneficial use or interests in the land, except where total and complete public usage of the area or feature, as allowed under this chapter, is agreed to in the Dedication Agreement.
           (5)      Within ninety days from the date of the completion of the dedication process by which an area or feature is established as a War Between the States Heritage Preserve, or as soon thereafter as possible, the commission shall recommend a management plan for the area or feature concerned.  Such proposed plan shall include recommendations as to the uses and prohibited uses to which the property should be put, recommendations as to whether all or a part of the area or feature is deserving of increased protection through inclusion in the War Between the States Heritage Trust, the projected cost of the management of the property, and recommendations as to whether or not a user fee would be appropriate.  All state, federal, county, local, and private groups interested in the area or feature involved shall be allowed to have input into the proposed management plan.  The plan shall be considered by the advisory board, and therefrom the advisory board shall propose to the commission an overall management plan for the area or feature concerned. Upon approval by the commission of a plan, the commission or that agency or group authorized by the commission shall manage the War Between the States Heritage Preserve in accordance therewith.

     Section 51-18-90.      There is hereby created the War Between the States Heritage Trust, the trustee of which shall be the War Between the States Heritage Trust Commission.  The corpus of the trust shall be made up of those War Between the States Heritage Preserves which the commission considers to be of such outstanding and unique natural or cultural character so as to be significant and essential to the carrying out of the goals and purposes of this chapter and as such, to merit a greater degree of preservation than that provided by dedication.  The commission shall have authority to place into the corpus of the trust any War Between the States Heritage Preserve that it feels meets this criteria and which has been recommended for inclusion therein by the advisory board.  The beneficiaries of this trust are and shall be the present and future generations of citizens of the State, more particularly those present and future citizens residing within a close proximity to any area or feature which itself, or an interest therein, becomes, constitutes, or comprises a part of the corpus of such trust and who actually enjoy use of such area or feature; and further and more particularly, those present and future students, teachers, and persons residing in the State who are concerned with conservation or with research in any facet of ecology, history, or archeology and who actually utilize any such area or feature for the promotion of such interest.
     Wherever the term 'area or feature' is used in this section, it shall include 'or interests therein'.  The following, except as otherwise expressly provided, shall constitute substantive terms of the trust and apply to any area or feature, which becomes a part of the corpus thereof:
     (1)      Upon approval by the commission of the inclusion of a War Between the States Heritage Preserve in the corpus of the War Between the States Heritage Trust, such transfer shall be recorded in the county in which the property is located and shall establish conclusive proof that such area or feature is suitable for preservation and protection under this chapter and constitutes a part of the corpus of the War Between the States Heritage Trust.
     (2)      In any case wherein the previous owner of a War Between the States Heritage Preserve has restricted such area or feature from inclusion in the War Between the States Heritage Trust, or where the previous owner has withheld an interest therein such as a life estate or reverter, the War Between the States Heritage Preserve involved shall not be allowed to become a part of the corpus of the War Between the States Heritage Trust unless, at a subsequent time, such approval is obtained from such person or his successor in interest.
     (3)      Upon the approval by the commission of the inclusion of any War Between the States Heritage Preserve in the War Between the States Heritage Trust and the transfer of the title or interest held by the commission therein to the trust, subject to the provisions of item (2) of this section, legal title to such area or feature shall be conveyed to the trustee of the War Between the States Heritage Trust and the equitable, or beneficial ownership, shall rest in those beneficiaries previously stated and described, whether such property was owned by a private or public source prior to dedication.
     (4)      Upon approval by the advisory board, the commission and any agency of the State are hereby authorized to enter into agreement in advance with any person, firm, corporation, legal entity of government, or any private group that any particular area or feature shall be conveyed to the trustee in trust under the provisions of this chapter.
     (5)      Upon approval by the commission of inclusion of any War Between the States Heritage Preserve into the corpus of the War Between the States Heritage Trust, the advisory board shall review the management plan therefore, as well as the Dedication Agreement, and any other sources of information which it may consider appropriate.  Upon approval thereof by the commission, the commission or that agency or group assigned management responsibilities therefore shall manage the property in accordance therewith. Except to the extent expressly otherwise provided in the Dedication Agreement, the following substantive terms shall be deemed to be set forth in the conveyance to the War Between the States Heritage Trust and the trustee shall hold such property in trust subject to such terms:
           (a)      The essential natural character of the property shall be maintained.
           (b)      There shall be no erection or any improvements thereon except those improvements necessary for the security, safety, or convenience of the public and those required for maintenance, historical interpretation, and management or to restore it to its War Between the States state.
           (c)      Cutting or burning of timber, wood, or other destruction of flora or fauna shall be permitted only for conservation or regeneration of flora or fauna; for the control of plant succession by deliberate manipulation for restoration of preservation of a particular vegetation type or of an endangered species of flora, fauna, or wildlife; or for the establishment and maintenance of nature and hiking trails, picnic areas, camping areas, and the like where compatible and consistent with the character of the area or feature concerned and not seriously damaging or detrimental to the natural quality of the property.
           (d)      No stream shall be dammed or have its course altered except to return it to its natural flow.
           (e)      No motorized vehicles shall be permitted on the property other than those utilized by the trustee or its agents in management and protection of the property or used by the general public for ingress and egress to the property in compliance with the management plan for the area or feature concerned.
           (f)      No change shall be made in the general topography of the area or feature, except for those minimal alterations which may be necessary to provide on-foot access to the public for visitation or observation or to return worn or altered topographical features to their original historical features, and this shall be done only where wholly compatible and consistent with the character of the property and where no detrimental effect shall result.
           (g)      No activity shall be allowed or permitted which might pollute any stream, body of water, or the atmosphere.
           (h)      No signs, billboards, or other advertising of any kind shall be erected; however, informational and directional signs related to the designation of the area, historical interpretation, or feature as a War Between the States Heritage Preserve and related to the public's enjoyment thereof shall be allowed when approved by the trustee.
           (i)            No other acts or uses which are detrimental to the retention of the property in its natural or historical state shall be allowed, including those detrimental to flood control, drainage, water conservation, erosion control or soil conservation, or fish or wildlife habitat preservation.
           (j)            Where cultural areas or features are involved, reasonable excavation, improvement, and the like shall be allowed for research purposes, as well as to restore such areas or features, and for historical interpretation.
           (k)      The trust shall continue in perpetuity.
           (l)            Nothing in this chapter shall be interpreted as restricting the use of an existing or any future easement, express or implied, in favor of any utility or other holder of an easement for public purposes.
     (6)      Those natural and related cultural areas and features that are acquired as War Between the States Heritage Preserves in accordance with the trust provisions of this chapter are hereby declared to be as such at their highest, best, and most important use for the public benefit.  The State, any agencies thereof, local or county entities of government, or public utility which has the power of condemnation by law may acquire by purchase, gift, or eminent domain an easement or other interest in any property comprising a part of the corpus of the War Between the States Heritage Trust; provided, however, that before any such condemnation shall occur a court of competent jurisdiction shall determine the following:
           (a)      there is an unavoidable and imperative public necessity that the property or interest therein be taken for another public use;
           (b)      that there is no feasible and prudent alternative for the proposed use for which the property or interest therein is to be taken; and
           (c)      that the proposal for taking includes all possible planning to minimize the harm done to such property resulting from such proposed use.  Where the court deems appropriate, a public hearing shall be conducted prior to the court's decision to allow comment and input thereto.  No city, county, public district, agency of the State, or public utility of the State shall acquire any real property which is a part of the corpus of the War Between the States Heritage Trust through condemnation for the purpose of utilizing such property for another public use unless the acquiring entity pays or transfers to the War Between the States Heritage Trust sufficient compensation to enable the operating entity to replace the real property and facilities thereon.  The trustee of the trust shall have authority to utilize such proceeds to acquire additional property for the trust and to maintain those properties that form the corpus of the trust.
     (7)      The common law of South Carolina pertaining to trusts shall be applicable to the War Between the States Heritage Trust and to all areas or features, or interests therein, which become parts of this corpus.  Without in any way limiting the generality of the foregoing, such trusts shall not fail for want of a trustee, and the trust shall be terminated as to any particular area or feature, or interest therein, only upon total failure of the intended purpose.  Any substitution of the trustee or termination of the trust as to any particular area or feature, or interests therein, shall occur only after appropriate judicial action wherein the beneficiaries are adequately represented, and such total failure shall not in any way affect the remainder of the property within the corpus of the trust.
     (8)      The trustee shall hold, manage, preserve, and enforce the various areas and features, or interests therein, which become a part of the corpus of the trust in accordance with the terms of this chapter and in any respective conveyances and transfers thereto.  To that end the trustees may adopt and modify rules and regulations for the use and enjoyment of such trust properties by the public and may employ or appoint agents to act on their behalf in the management of such properties.

     Section 51-18-100.      In any case wherein a priority feature is either unsuited or unavailable for acquisition as a War Between the States Heritage Preserve, the commission in agreement with the owner thereof may recognize such for its importance by registering it as a Heritage Site through the following registration procedures:
     (1)      The commission through its research and consultation with the owners of properties selected as priority features shall notify the advisory board of those which are unsuited or unavailable for dedication but for which the owners have made application for recognition as Heritage Sites through registration.
     (2)      The advisory board shall review such applications and shall recommend to the commission the approval of those which it deems worthy of preservation through registration as Heritage Sites.
     (3)      From the advisory board's recommendations, the commission shall approve those applications for recognition as Heritage Sites which it deems deserving and appropriate for carrying out the purposes of this chapter.
     (4)      Upon approval of an application by the commission, the commission may enter into a written agreement of registration with the owner of the feature concerned whereby the State shall give public recognition of the importance of the area or feature as a Heritage Site and the owner shall express his intent to preserve it.
     (5)      The commission shall erect and maintain an appropriate sign on the Heritage Site indicating its recognition and the owner thereof shall be given a certificate acknowledging its registration.
     (6)      The registration agreement may be terminated by the owner or the commission at any time upon thirty days' notification to the other party.  Such termination shall remove the feature from the Heritage Site Program, and any certificate previously issued therefor or sign erected shall be returned to the commission by the property owner.
     (7)      Unless the registration agreement is terminated, the owner of a Heritage Site shall maintain its essential natural character.

     Section 51-18-110.      The commission shall annually request such appropriations as it deems necessary to carry out the activities of the commission and the advisory board.  Funding for management of areas and features that become War Between the States Heritage Preserves must be specifically requested by the commission or that entity of government responsible for management thereof.
     The commission shall select those War Between the States Heritage Preserves for which it is appropriate to charge an individual user fee.  The commission may sell such user permits for a cost not to exceed five dollars and to be valid for the fiscal year in which issued at all War Between the States Heritage Preserves where a permit is required.  At the end of the fiscal year, the commission shall distribute the funds collected among the entities of government assigned responsibility for management in direct proportion to the acreage which they manage.  The proceeds of the sale of the user permits must be used to defray the management expenses.

     Section 51-18-115.      There is created the War Between the States Heritage Preserve Trust Fund, which must be kept separate from other funds of the State.  The fund must be administered by the commission 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.
     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 and no funds may be expended to acquire interest in property without the approval of a majority of the War Between the States Heritage Trust Commission.  The commission shall report by letter to the Speaker of the House of Representatives and the President Pro Tempore of the Senate 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 trust 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 War Between the States Heritage Preserve acquired under this section, or products of the preserve such as timber, utility easement rights, and the like, accrue to the fund.

     Section 51-18-118.      The trust is authorized to receive and dispose of donations of real and personal property.  In furtherance of this section the commission may:
     (1)      receive donations of real and personal property including, but not limited to, land, houses, stocks, and bonds;
     (2)      on its own or by its agent, sell donated property and deposit any proceeds to the Heritage Land Trust Fund for use in accordance with the purposes established in this chapter;
     (3)      establish minimum acceptable prices for disposition of donated property;
     (4)      trade donated property for property of equal value;
     (5)      promote donations to the program through advertising; or
     (6)      decline donations for any reason.

     Section 51-18-120.      Nothing contained in this chapter shall be construed as interfering with the purposes stated in the establishment of or pertaining to any state or local park, preserve, wildlife refuge, forest, or other area or the proper management and development thereof, except that any agency managing an area or feature acquired as a War Between the States Heritage Preserve or a Heritage Site under the provisions of this chapter shall preserve it in accordance with the applicable conveyance, registration agreement, and the regulations of the commission applicable thereto.
     Neither the acquisition of any War Between the States Heritage Preserve nor the registration of any Heritage Site nor any action taken by the commission under any of the provisions of this chapter shall void or replace any protective status under law which an area would have were it not a War Between the States Heritage Preserve or Heritage Site, the protective provisions of this chapter being supplemental thereto.

     Section 51-18-130.      (A)      Enforcement officers of the Natural Resources Enforcement Division of the Department of Natural Resources, park rangers, and forestry rangers, as well as all other state and local law enforcement officials, shall have authority to enforce the provisions of this chapter.  The Attorney General shall enforce the regulations of the commission both as they apply to those areas dedicated, as well as those that are subsequently made a part of the corpus of the War Between the States Heritage Trust. In exercise of this authority, the Attorney General, among other things, and at the request of the commission, may bring an action for injunctive or declaratory relief in any court of competent jurisdiction.
     (B)(1)      A person violating the provisions of this chapter where the damage to the property does not exceed five hundred dollars is guilty of a misdemeanor and, upon conviction, shall be fined not more than one hundred dollars or be imprisoned not more than thirty days for each offense.
           (2)      A person violating the provisions of this chapter where the damage to the property exceeds five hundred dollars is guilty of a misdemeanor and, upon conviction, shall be fined not less than five hundred dollars nor more than five thousand dollars or be imprisoned not more than six months, or both, for each offense.

     Section 51-18-140.      Not more than twenty thousand acres of real property shall be acquired in fee under the provisions of this chapter. Moreover, no acquisition shall be made under this chapter in any county without written approval of a majority of the county delegation in the county where the property is located.

     Section 51-18-150.      The War Between the States Heritage Trust Commission, as trustee for the War Between the States Heritage Preserve Trust Fund, shall report annually to the Committee on Ways and Means of the House of Representatives and the Senate Finance Committee detailing acquisitions in the previous year by the War Between the States Heritage Preserve Trust Fund and planned acquisitions for the next five years."

B.      Section 12-6-5060(A) of the 1976 Code is amended to read:

     "(A)      Each taxpayer required to file a state individual income tax return may contribute to the War Between the States Heritage Trust Fund established pursuant to Section 51-18-115, the Nongame Wildlife and Natural Areas Program Fund, the Children's Trust Fund of South Carolina established pursuant to as created by Section 20-7-5010, or the Eldercare Trust Fund of South Carolina established pursuant to as created by Section 43-21-160, or the First Steps to School Readiness Fund established pursuant to as created by Section 20-7-9740 by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated."

C.      Section 12-37-220(B)(42) of the 1976 Code is amended to read:

     "(42)      Property held in trust under the provisions of Chapter 18 of Title 51 and All all real property of charitable trusts and foundations held for historic preservation of forts and battlegrounds which extends beyond the buildings and premises actually occupied by the charitable trusts and foundations which own the real property if no profit or benefit from any operation on the charitable trusts' and foundations' real property inures to the benefit of any private stockholder or individual and no income producing ventures are located on the charitable trusts' and foundations' real property. This exemption does not change any exemption provided for charitable trusts and foundations in item (4) of subsection (A) of this section and item (d), Section 3, Article X of the Constitution of this State but is an additional exemption for charitable trusts and foundations for historic preservation, as provided in this item."

D.      This section takes effect July 1, 2000.

SECTION 53

DELETED

SECTION 54

TO AMEND SECTION 14-1-208, AS AMENDED, OF THE 1976 CODE, RELATING TO ASSESSMENTS IMPOSED IN MUNICIPAL COURT, SO AS TO INCREASE THE ASSESSMENT FROM SEVENTY-FOUR PERCENT OF THE FINE IMPOSED TO ONE HUNDRED PERCENT, TO PROVIDE THAT THE ADDITIONAL MONIES COLLECTED ARE REMITTED TO THE STATE TREASURER FOR THE GOVERNOR'S TASK FORCE ON LITTER, AND TO EXEMPT THE EXPENDITURE OF THESE FUNDS FROM THE PROVISIONS OF CHAPTER 35 OF TITLE 11; TO PROVIDE FOR MONIES TO THE DEPARTMENT OF JUVENILE JUSTICE FOR REDUCTION OF NONSTATE COSTS OF OPERATING JUVENILE DETENTION CENTERS; AND TO AMEND SECTION 16-11-700, AS AMENDED, RELATING TO THE OFFENSE OF LITTERING, SO AS TO ELIMINATE THE REQUIREMENT THAT A PORTION OF THE FINES IMPOSED FOR VIOLATIONS MUST BE DEPOSITED IN THE GENERAL FUND OF THE STATE AND USED BY THE OFFICE OF THE GOVERNOR TO FUND A LITTER CONTROL PROGRAM.

A.      Subsections (A), (B), and (C) of Section 14-1-208 of the 1976 Code, as last amended by Act 434 of 1998, are further amended to read:

     "(A)      Beginning January 1, 1995 October 1, 2000, and continuously after that date, a person who is convicted of, or pleads guilty or nolo contendere to, or forfeits bond for an offense tried in municipal court must pay an amount equal to 74 100 percent of the fine imposed as an assessment. This assessment must be paid to the municipal clerk of court and deposited with the city treasurer for remittance to the State Treasurer. The assessment is based upon that portion of the fine that is not suspended, and assessments must not be waived, reduced, or suspended.
     (B)      The city treasurer must remit 16.22 12 percent of the revenue generated by the assessment imposed in subsection (A) to the municipality to be used for the purposes set forth in subsection (D) and remit the balance of the assessment revenue to the State Treasurer on a monthly basis by the fifteenth day of each month and make reports on a form and in a manner prescribed by the State Treasurer. Assessments paid in installments must be remitted as received.
     (C)      The State Treasurer shall deposit the assessments received as follows:
           (1)      21.63 15.24 percent for programs established pursuant to Chapter 21 of Title 24 and the Shock Incarceration Program as provided in Article 13, Chapter 13 of Title 24;
           (2)      21.39 15.07 percent to the Department of Public Safety program of training in the fields of law enforcement and criminal justice;
           (3)      .56 .39 percent to the Department of Public Safety to defray the cost of erecting and maintaining the South Carolina Law Enforcement Hall of Fame. When funds collected pursuant to this item exceed the necessary costs and expenses of the Hall of Fame operation and maintenance as determined by the Department of Public Safety, the department may retain the surplus for use in its law enforcement training programs;
           (4)      15.98 11.26 percent for the State Office of Victim Assistance;
           (5)      5.84 4.11 percent to the general fund;
           (6)      16.26 11.46 percent to the Office of Indigent Defense for the defense of indigents;
           (7)      1.37 .97 percent to the Department of Mental Health to be used exclusively for the treatment and rehabilitation of drug addicts within the department's addiction center facilities;
           (8)      .84 .59 percent to the Attorney General's Office for a fund to provide support for counties involved in complex criminal litigation. For the purposes of this item, 'complex criminal litigation' means criminal cases in which the State is seeking the death penalty and has served notice as required by law upon the defendant's counsel and the county involved has expended more than one hundred thousand dollars for a particular case in direct support of operating the court of general sessions and for prosecution-related expenses. The Attorney General shall develop guidelines for determining what expenses are reimbursable from the fund and shall approve all disbursements from the fund. Funds must be paid to a county for all expenditures authorized for reimbursement under this item except for the first one hundred thousand dollars the county expended in satisfying the requirements for reimbursement from the fund; however, money disbursed from this fund must be disbursed on a 'first received, first paid' basis. When revenue in the fund reaches five hundred thousand dollars, all revenue in excess of five hundred thousand dollars must be credited to the general fund of the State. Unexpended revenue in the fund at the end of the fiscal year carries over and may be expended in the next fiscal year;
           (9)      16.13 11.36 percent for the programs established pursuant to Section 56-5-2953(E);
           (10)      14.77 percent to the Governor's Task Force on Litter and in the expenditure of these funds, the provisions of Chapter 35 of Title 11 do not apply;
           (11)      14.77 percent to the Department of Juvenile Justice.  The Department of Juvenile Justice must apply the funds generated by this item to offset the nonstate share of allowable costs of operating juvenile detention centers so that per diem costs charged to local governments utilizing the juvenile detention centers do not exceed twenty-five dollars a day.  Notwithstanding this provision of law, the director of the department may waive, reduce, defer, or reimburse the charges paid by local governments for juvenile detention placements.  The department may apply the remainder of the funds generated by this item, if any, to operational or capital expenses associated with regional evaluation centers."

B.      Items (1) and (2) of Section 16-11-700(C) of the 1976 Code, as last amended by Act 100 of 1999, are further amended to read:

     "(1)      A person who violates the provisions of this section in an amount less than fifteen pounds in weight or twenty-seven cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned for not more than thirty days for each offense.  In addition to a fine and for each offense under the provisions of this item, the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court.  One hundred dollars of the fine imposed by this item must be deposited in the state's general fund and used by the Office of the Governor to fund a litter control campaign.
     (2)      The fine for a deposit of a collection of litter or garbage in an area or facility not intended for public deposit of litter or garbage is one thousand dollars.  The provisions of this item apply to a deposit of litter or garbage, as defined in Section 44-67-30(4), in an area or facility not intended for public deposit of litter or garbage, but this does not prohibit a private property owner from depositing litter or garbage as a property enhancement if the depositing does not violate applicable local or state health and safety regulations.  In addition to a fine and for each offense under the provisions of this item the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court.  Eight hundred dollars of the fine imposed by this item must be deposited in the states general fund and used by the Office of the Governor to fund a litter control campaign."

C.      This section takes effect October 1, 2000.

SECTION 55

DELETED

SECTION 56

DELETED

SECTION 57

TO AMEND ARTICLE 11, CHAPTER 1, TITLE 13 OF THE 1976 CODE, RELATING TO THE ADVISORY COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO DELETE THE WORD "ADVISORY" FROM THE DESIGNATION OF THE COUNCIL, TO PROVIDE FOR MEMBERSHIP ON THE COUNCIL OF THE SOUTH CAROLINA RESEARCH AUTHORITY IN THE PLACE OF THE SMALL AND MINORITY BUSINESS EXPANSION COUNCIL, TO INCLUDE OTHER ECONOMIC DEVELOPMENT PROJECTS IN GRANT APPROVALS, AND TO MAKE TECHNICAL CHANGES; AND TO AMEND SECTION 12-10-85, RELATING TO THE PURPOSE AND USE OF STATE RURAL INFRASTRUCTURE FUNDS, SO AS TO SPECIFY QUALIFYING INFRASTRUCTURE AND OTHER ECONOMIC DEVELOPMENT ACTIVITIES AND TO REDEFINE "LOCAL GOVERNMENT" TO MEAN A COUNTY OR GROUP OF COUNTIES PURSUANT TO SECTION 4-9-20 INSTEAD OF A MUNICIPALITY ORGANIZED PURSUANT TO TITLE 5.

A.      Article 11, Chapter 1, Title 13 of the 1976 Code is amended to read:

"Article 11

Advisory Coordinating Council for Economic Development

     Section 13-1-1710.      There is hereby created the Advisory Coordinating Council for Economic Development.  The membership shall consist consists of the Secretary of Commerce, the Commissioner of Agriculture, the Chairman of the South Carolina Employment Security Commission, the Director of the South Carolina Department of Parks, Recreation and Tourism, the Chairman of the State Board for Technical and Comprehensive Education, the Chairman of the South Carolina Ports Authority, the Chairman of the South Carolina Public Service Authority, the Chairman of the South Carolina Jobs Economic Development Authority, the Chairman Director of the South Carolina Department of Revenue, and the Chairman of the Small and Minority Business Expansion Council South Carolina Research Authority.  The Secretary of Commerce shall serve serves as the chairman of the advisory coordinating council.

     Section 13-1-1720.      (A)      The advisory coordinating council shall meet at least quarterly.  It shall enhance the economic growth and development of the State through strategic planning and coordinating activities which must include that include:
           (1)      development and revision of a strategic state plan for economic development.  'Strategic state plan for economic development' means a planning document that outlines strategies and activities designed to continue, diversify, or expand the economic base of South Carolina, based on the natural, physical, social, and economic needs of the State;
           (2)      monitoring implementation of a strategic plan for economic development through an annual review of economic development activities or of the previous year and modifying the plan as necessary;
           (3)      coordination of economic development activities of member agencies of the advisory coordinating council and its advisory committees;
           (4)      use of federal funds, foundation grants, and private funds in the development, implementation, revision, and promotion of a strategic plan for economic development;
           (5)      evaluation of plans and programs in terms of their compatibility with state objectives and priorities as outlined in the strategic plan for economic development.;
           (6)      approval of infrastructure and other economic development grants for local units of government pursuant to Section 12-21-2434;
           (7)      approval of infrastructure development grants for local units of government pursuant to Article 27, Chapter 21, Title 12 Section 12-21-6540.
     (B)      The advisory coordinating council may not engage in the delivery of services.

     Section 13-1-1730.      The advisory coordinating council shall make reports to the Governor, the chairmen of the Senate Finance and House Ways and Means Committees, and the General Assembly at least annually, in the Department of Commerce's annual report, on the status and progress of economic development goals which have been set for the State as a part of the ongoing planning process and on the commitments, expenditures, and balance of the Economic Development Account, with appropriate recommendations.

     Section 13-1-1740.      (A)      The advisory coordinating council shall make recommendations to the Governor, the General Assembly, and the State Budget and Control Board as to the policies and programs involved in the state's economic development it considers necessary to carry out the objectives of the strategic plan.
     (B)      The advisory coordinating council shall review agency requests for legislative appropriations for economic development and may make recommendations to the Budget and Control Board and the General Assembly concerning requests compatible with the objectives of the strategic plan.  Nothing in This section does not limits limit an agency's direct access to the General Assembly, and comment by the advisory coordinating council is not a part of the budget process.

     Section 13-1-1750.      Funds for technical, administrative, and clerical assistance and other expenses of the advisory coordinating council must be provided by the member agencies.  The advisory coordinating council may establish technical advisory committees in order to assist in the development of a strategic plan for economic development.  The advisory coordinating council shall seek to utilize data available from the Department of Transportation, the University of South Carolina, Clemson University, and other state agencies and organizations and relevant to the economic growth and development of the State which is available from the Department of Transportation, the University of South Carolina, Clemson University, and other state agencies and organizations.

     Section 13-1-1760.      If any a provision of Sections 13-1-1710 through 13-1-1760 13-1-1770 is in conflict conflicts with any an existing provisions provision of law pertaining to the member agencies of the advisory coordinating council, notwithstanding the fact that the provisions of law contained in Sections 13-1-1710 through 13-1-1760 13-1-1770 have a later effective date, the prior earlier provision controls.  Neither Sections 13-1-1710 through 13-1-1760 13-1-1770 nor the advisory coordinating council shall infringe upon nor diminish the self-governing autonomy of the agencies involved.

     Section 13-1-1770.      (A)      The Advisory coordinating council for Economic Development shall establish the 'Downtown Redevelopment Program' for the purpose of making grants for revitalizing and enhancing the viability of downtown areas through partnerships of municipal government, county government, and private investors.
     (B)      The council shall establish the program guidelines, regulations, and criteria by which grants must be evaluated and awarded including, but not limited to:
           (1)      a nonstate match requirement of at least one hundred fifty percent of state grant funds; and
           (2)      completing completion of an economic impact before an award is made."

B.      Section 12-10-85 of the 1976 Code is amended to read:

     "Section 12-10-85.      (A)      Funds received by the department for the State Rural Infrastructure Fund must be deposited in the State Rural Infrastructure Fund of the Council.  The fund must be administered by the council for the purpose of providing financial assistance to local governments for infrastructure and other economic development activities including, but not limited to:
           (1)      training costs and facilities;
           (2)      improvements to regionally planned public and private water and sewer systems;
           (3)      improvements to both public and private electricity, natural gas, and telecommunications systems including, but not limited to, an electric cooperative, electrical utility, or electric supplier described in Chapter 27 of Title 58; or
           (4)      fixed transportation facilities including highway, rail, water, and air.
     (B)      Rural Infrastructure Fund grants must be available to benefit counties designated as 'least developed' or 'underdeveloped' as defined in Section 12-6-3360 according to guidelines established by the council.  However, except that up to twenty-five percent of the funds annually available in excess of five million dollars must be set aside for grants to areas of 'moderately developed' and 'developed' counties.  A County governing bodies body of a 'moderately developed' or 'developed' county must apply to the council for these set-aside grants stating the reasons that certain areas of their the county qualify for these grants because they the conditions in that area of the county are comparable to those conditions qualifying a county as 'least developed' or 'underdeveloped'.
     (C)      For the purposes of this section, 'local government' means a municipality organized pursuant to Chapters 7, 9, 11, and 13 of Title 5 or a county, or group of counties, organized pursuant to Section 4-9-20(a), (b), (c), or (d).
     (D)      The council shall submit a report to the Governor and General Assembly by March fifteenth covering activities for the prior calendar year."

C.      This section takes effect July 1, 2000.

SECTION 58

DELETED

SECTION 59

DELETED

SECTION 60

TO AMEND THE 1976 CODE BY ADDING SECTION 59-111-75 SO AS TO AUTHORIZE THE MILITARY DEPARTMENT THROUGH THE ADJUTANT GENERAL TO DEVELOP A LOAN REPAYMENT PROGRAM WHEREBY TALENTED AND QUALIFIED STATE RESIDENTS MAY ATTEND STATE PUBLIC OR PRIVATE COLLEGES AND UNIVERSITIES FOR THE PURPOSE OF PROVIDING INCENTIVES FOR ENLISTING OR REMAINING IN THE SOUTH CAROLINA NATIONAL GUARD IN AREAS OF CRITICAL NEED, AND TO PROVIDE FOR THE PROCEDURES, CONDITIONS, AND REQUIREMENTS OF THE PROGRAM.

The 1976 Code is amended by adding:

     "Section 59-111-75.      The Military Department through the Adjutant General, in consultation with the staff of the South Carolina Student Loan Corporation, shall develop a loan repayment program whereby talented and qualified state residents may attend state public or private colleges and universities for the purpose of providing incentives for enlisting or remaining in the South Carolina National Guard in areas of critical need.  Areas of critical need must be defined annually for that purpose by the state Adjutant General.  The Adjutant General shall promulgate appropriate regulations to set forth the terms of the loan repayment program, upon the advice of a loan repayment advisory board.  The loan repayment advisory board shall consist of the Adjutant General, the State Command Sergeant Major, and three commissioned officers of the South Carolina National Guard.  The Governor, Superintendent of Education, and the Adjutant General each shall appoint one such officer.  The regulations shall define limitations on monetary repayment amounts, successful participation within the National Guard, successful school matriculation, and other requirements for participation in the loan repayment program.  In case of failure to complete the term of enlistment, failure to successfully participate in the National Guard, noncompliance by a borrower with the terms of the loan, or failure to comply with regulations of the program, the borrower's participation in the loan repayment program may be terminated and the borrower remains subject to those provisions as provided in the loan documents.  The borrower shall execute the necessary legal documents to reflect his obligation to the lending entity and the terms and conditions of the loan.  The loan program, as implemented herein shall be administered by a separate student loan provider.  Of the funds appropriated by the General Assembly for the loan repayment program, such funds must be retained in a separate account and used on a revolving basis for purposes of the loan repayment program.  The State Treasurer shall disburse funds from this account as requested by the Adjutant General and upon warrant of the Comptroller General.  Funds in the account and any earnings thereon may be carried forward in succeeding fiscal years and used for the purposes of the loan repayment program.  The Adjutant General shall review the loan program annually and report to the General Assembly on its progress and results."

SECTION 61

DELETED

SECTION 62

DELETED

SECTION 63

TO AMEND SECTION 12-36-140 OF THE 1976 CODE, RELATING TO THE DEFINITIONS OF "STORAGE" AND "USE" FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT AND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO CLARIFY THAT THE SOUTH CAROLINA SALES AND USE TAX DOES NOT APPLY TO THE DISTRIBUTION OF DIRECT MAIL ADVERTISING MATERIALS WHICH ARE DISTRIBUTED IN THIS STATE BY ANY PERSON ENGAGED IN THE BUSINESS OF PROVIDING COOPERATIVE DIRECT MAIL ADVERTISING.

A.      Section 12-36-140(C) of the 1976 Code, as added by Section 74A, Part II, Act 612 of 1990, is amended to read:

     "(C)      'Storage' and 'use' do not include the keeping, retaining, or exercising of any right or power over tangible personal property:
           (1)      for the exclusive purpose of subsequently transporting it outside the State for first use,; or
           (2)      for the purpose of first being manufactured, processed, or compounded into other tangible personal property to be transported and used solely outside the State; or
           (3)      for the purpose of being distributed as cooperative direct mail promotional advertising materials by means of interstate carrier, a mailing house, or a United States Post Office to residents of this State from locations both inside and outside the State.  For purposes of this item, 'cooperative direct mail promotional advertising materials' means discount coupons, advertising leaflets, and similar printed advertising, including any accompanying envelopes and labels which are distributed with promotional advertising materials of more than one business in a single package to potential customers, at no charge to the potential customer, of the businesses paying for the delivery of the material."

B.      Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item to read:

     "( )      cooperative direct mail promotional advertising materials delivered by means of interstate carrier, a mailing house, or a United States Post Office to residents of this State from locations both inside and outside the State.  For purposes of this item, 'cooperative direct mail promotional advertising materials' means discount coupons, advertising leaflets, and similar printed advertising, including any accompanying envelopes and labels which are distributed with promotional advertising materials of more than one business in a single package to potential customers, at no charge to the potential customer, of the businesses paying for the delivery of the material."

C.      This section takes effect June 1, 2001.

SECTION 64

DELETED

SECTION 65

DELETED

SECTION 66

DELETED

SECTION 67

TO AMEND SECTIONS 9-1-10, 9-1-470, 9-1-1140, 9-1-1540, 9-1-1650, ALL AS AMENDED, 9-1-1660, AND 9-1-1910, OF THE 1976 CODE, ALL RELATING TO DEFINITIONS, MEMBERSHIP BY EMPLOYERS, PURCHASE OF SERVICE CREDIT, WITHDRAWAL OF CONTRIBUTIONS BY MEMBER, AND PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, AND THE MINIMUM BENEFIT FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS-REFERENCES, CLARIFY THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE RETIREMENT PAYMENT PROVISIONS UPON THE DEATH OF A RETIRED MEMBER, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS AND DELETE THE LUMP SUM PURCHASE TO OFFSET A REDUCTION FOR EARLY RETIREMENT; TO AMEND SECTIONS 9-11-10,  9-11-40, 9-11-50, 9-11-60, 9-11-70, 9-11-80, ALL AS AMENDED, 9-11-130 AND 9-11-210, AS AMENDED, 9-11-220, ALL RELATING TO DEFINITIONS, MEMBERSHIP OF EMPLOYERS AND EMPLOYEES, CREDITED SERVICE, SERVICE RETIREMENT ELIGIBILITY AND RETIREMENT ALLOWANCES, DISABILITY RETIREMENT, PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, EMPLOYER AND EMPLOYEE CONTRIBUTIONS, FOR PURPOSES OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS REFERENCES, CLARIFY THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS; TO AMEND SECTIONS 9-1-1620, AS AMENDED, 9-11-150, AS AMENDED, 9-11-110, AS AMENDED, AND 9-1-1660, RELATING TO OPTIONAL ALLOWANCES FOR BENEFICIARIES FOR RETIRED MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND PAYMENTS TO BENEFICIARIES FOLLOWING IN-SERVICE DEATH OF MEMBERS OF THESE SYSTEMS, SO AS TO REVISE THE OPTIONS AND MAKE CONFORMING AMENDMENTS, AND TO AMEND SECTION 1-11-730, AS AMENDED, RELATING TO PERSONS ELIGIBLE TO PARTICIPATE IN THE STATE EMPLOYEE HEALTH INSURANCE PLANS AND THE COSTS FOR SUCH EMPLOYEES, SO AS TO PROVIDE COVERAGE FOR CERTAIN PERSONS WHO HAVE RETURNED TO STATE SERVICE AFTER TERMINATING BEFORE RETIREMENT; AND TO REPEAL SECTIONS 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, AND 9-11-330,  ALL RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM OR THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS SECTION.

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

"Section 9-1-10.      The following words and phrases as used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:
     (1)      "Retirement System" or "System" shall mean the South Carolina Retirement System established under SECTION 9-1-20;
     (2)      "Public school" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed city, district or county school board;
     (3)      "Teacher" shall mean any teacher, helping teacher, attendance teacher, librarian, principal, supervisor, superintendent of public schools, superintendent of public instruction, county superintendent of education, person employed in the office of a county superintendent of education, bus driver and any other person employed in the public schools supported by the State, counties and school districts;
     (4)      "Employee" means:
           (a)      to the extent he is compensated by the State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;
           (b)      the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;
           (c)      an agent or officer of a county, municipality, or school district, or an agency or department thereof, which has been admitted to the system under the provisions of Section 9-1-470, to the extent he is compensated for services from public funds;
           (d)      an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;
           (e)      an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization; and
           (f)      an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.
           (g)      an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.
     "Employee" does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider those factors provided pursuant to Section 9-1-440;
     (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;
     (6)      "Member" shall mean any teacher or employee included in the membership of the System as provided in Article 5 of this chapter and for the purpose of establishing additional service it shall mean in service;
     (7)      "Board" shall mean the State Budget and Control Board which shall act under the provisions of this chapter through its division of personnel administration;
     (8)      "Medical Board" shall mean the board of physicians provided for in SECTION 9-1-220;
     (9)      "Service" shall mean service as a teacher or employee rendered to and paid for by an employer;
     (10)      "Prior service" shall mean service rendered as a teacher or employee prior to the date of membership for which credit is allowable under Article 7 of this chapter;
     (11)      "Membership service" shall mean service as a teacher or employee rendered while a member of the System;
     (12)      "Creditable service" shall mean prior service plus membership service for which credit is allowable as provided in Article 7 of this chapter;
     (13)      "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the System;
     (14)      "Regular interest" shall mean interest compounded annually at such rate as shall be determined by the Board in accordance with SECTION 9-1-280;
     (15)      "Accumulated contribution" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the employee annuity savings fund, together with regular interest thereon, as provided in Article 9 of this chapter;
     (16)      "Earnable compensation" shall mean the full rate of the compensation that would be payable to a teacher or employee if he worked for his full normal working time; when compensation includes maintenance, fees and other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer;
     (17)      "Average final compensation" with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation.  Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office;
     (18)      "Employee annuity" shall mean annual payments for life derived from the accumulated contributions of a member;
     (19)      "Employer annuity" shall mean annual payments for life derived from money provided by the employer;
     (20)      "Retirement allowance" shall mean the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu thereof;
     (21)      "Retirement" shall mean the withdrawal from active service with a retirement allowance granted under the System;
     (22)      "Employee annuity reserve" shall mean the present value of all payments to be made on account of an employee annuity or benefit in lieu thereof, computed on the basis of such mortality tables as shall be adopted by the Board and regular interest;
     (23)      "Employer annuity reserve" shall mean the present value of all payments to be made on account of an employer annuity or benefit in lieu thereof, computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest; and
     (24)      "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest.
     As used in this chapter, unless a different meaning is plainly required by the context:
     (1)      'Accumulated contribution' means the sum of all the amounts deducted from the compensation of a member and credited to the members individual account in the employee annuity savings fund, together with regular interest on the account, as provided in Article 9 of this chapter.
     (2)      'Active member' means an employee who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.
     (3)      'Actuarial equivalent' means a benefit of equal value when computed upon the basis of mortality tables adopted by the board and regular interest.
     (4)      'Average final compensation' with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the system producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December.  An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation.  Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months before the expiration of the elected official's term of office.
     (5)      'Beneficiary' means a person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the system.
     (6)      'Board' means the State Budget and Control Board which shall act under the provisions of this chapter through its Division of Retirement Systems.
     (7)      'Creditable service' means a member's earned service, prior service, and purchased service.
     (8)      'Earnable compensation' means the full rate of the compensation that would be payable to a member if the member worked the member's full normal working time; when compensation includes maintenance, fees, and other things of value the board shall fix the value of that part of the compensation not paid in money directly by the employer.
     (9)      'Earned service' means paid employment as a teacher or employee of an employer participating in the system where the teacher or employee makes regular retirement contributions to the system.
     (10)      'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.
     (11)      'Employee' means:
           (a)      to the extent compensated by this State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;
           (b)      the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;
           (c)      an employee, agent, or officer of a county, municipality, or school district, or an agency or department of any of these, which has been admitted to the system under the provisions of Section 9-1-470, to the extent the employee, agent, or officer is compensated for services from public funds;
           (d)      an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;
           (e)      an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization;
           (f)      an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.
           (g)      an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.
     'Employee' does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider the guidelines of the Social Security Administration regarding student services and other criteria the system uniformly prescribes.
     (12)      'Employee annuity' means annual payments for life derived from the accumulated contributions of a member.
     (13)      'Employee annuity reserve' means the present value of all payments to be made on account of an employee annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.
     (14)      'Employer' means this State, a county board of education, a district board of trustees, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of this 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 of any of these, which has been admitted to the system under the provisions of Section 9-1-470, a service organization referred to in item (11)(e) 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.
     (15)      'Employer annuity' means annual payments for life derived from money provided by the employer.
     (16)'Employer annuity reserve' means the present value of all payments to be made on account of an employer annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.
     (17)      'Medical board' means the board of physicians provided for in Section 9-1-220.
     (18)      'Member' means a teacher or employee included in the membership of the system as provided in Article 5 of this chapter.
     (19)      'Military service' means:
           (a)      service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;
           (b)      service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve, and
           (c)      service as a member of the Army National Guard or Air National Guard of this or any other state.
     (20)      'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.
     (21)      'Prior service' means service rendered as a teacher or employee before July 1, 1945, for which credit is allowable under Article 7 of this chapter.
     (22)      'Public school' means a school conducted within this State under the authority and supervision of a duly elected or appointed school district board of trustees.
     (23)      'Public Service' means service as an employee of the government of the United States, a state or political subdivision of the United States, or an agency or instrumentality of any of these.  'Public service' does not include 'educational service' or 'military service' as defined in this section.
     (24)      'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.
     (25)      'Regular interest' means interest compounded annually at a rate determined by the board in accordance with Section 9-1-280.
     (26)      'Retirement' means the withdrawal from active service with a retirement allowance granted under the system.
     (27)      'Retirement allowance' means the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu of the annuity.
     (28)      'Retirement system' or 'system' means the South Carolina Retirement System established under Section 9-1-20.
     (29)      'State' or 'this State' means the State of South Carolina;
     (30)      'Teacher' means a classroom teacher employed in the public schools supported by this State as determined by the board."

B.      Section 9-1-470 of the 1976 Code, as amended by Act 555 of 1988, is further amended to read:

     "Section 9-1-470.      Any A county, municipality, or other political subdivision of the State, any an agency or department of them, including a school board, any a service organization as defined in Section 9-1-10(4) 9-1-10(11)(e), and any nonprofit corporation created under the provisions of Chapter 35 of Title 33, for the purpose of supplying water and sewer, may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements and the regulations of the board."

C.      Section 9-1-1140 of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:

     "Section 9-1-1140.      Subject to the approval of the Board, any member who is on leave of absence on account of military service or for any other purpose which might tend to increase the efficiency of the services of the member to his employer may make monthly contributions to the System on the basis of the earnable compensation of such member at the time such leave of absence was granted.  Any person on leave of absence in the armed forces of the United States who would otherwise have qualified for prior service credit is entitled to prior service credit if he returns to the service of teaching or any other employment covered by or coming within the meaning hereof within a period of two years after he has been honorably discharged.  Employees under current employment by the State are eligible to establish credit for previous employment with the regional councils of government if the period is not covered by another retirement plan and payment is rendered in accordance with Section 9-1-440.
     A period of time up to one year for each pregnancy not to exceed a total of three years service credit may be established for maternity leave provided the member pays the full actuarial cost as determined by the board.  However, the payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year.  To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.
     Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service at the rate of one year of military service for each one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title. Any former employee of the United States employed in this State by an employer covered by the system, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment may not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event may any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service.
     A member who leaves covered employment to attend undergraduate or graduate school and returns to covered employment within ninety days after the member's last date of enrollment may establish up to two years' retirement credit by paying the actuarial cost as determined by the board.  However, the member contribution must not be less than twelve percent of current salary or the average of the three highest consecutive fiscal years, whichever is greater, for each year prorated for periods of less than a year.
     Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.
     Previous service of a member as an employee of a redevelopment commission created by the governing body of a municipality in this State may be established as creditable service upon payment of an amount determined as provided pursuant to Section 9-1-440.
     At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave at no cost to the member.  The leave must be credited at a rate where twenty days of unused sick leave equals one month of service.  This additional service credit may not be used to qualify for retirement.
     (A)      An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.  A member may not establish credit for a period of public service for which the member also may receive a retirement benefit from another retirement plan.
     (B)      An active member may establish service credit for any period of paid educational service by making a payment to the system determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.  A member may not establish credit for a period of educational service for which the member also may receive a retirement benefit from another retirement plan.
     (C)      An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.
     (D)      An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.
     (E)      An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.
     (F)      An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.
     (G)      An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments.  Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.
     (H)      An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter.  Any amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.
     (I)      Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.
     (J)      A member may purchase each type of service under this section once each fiscal year.
     (K)      The board shall promulgate regulations and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter.
     (L)      At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member.  The leave must be credited at a rate where twenty days of unused sick leave equals one month of service.  This additional service credit may not be used to qualify for retirement."

D.      The first paragraph of Section 9-1-1540 of the 1976 Code is amended to read:

     "Upon the application of a member in service or of his employer, any a member in service on or after July 1, 1970, who has had five or more years of creditable earned service or any a contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership on or after July 1, 1985, may be retired by the board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

E.      The first two paragraphs of Section 9-1-1650 of the 1976 Code are amended to read:

     "Should If a member cease ceases to be a teacher or employee except by death or retirement, he shall the member must be paid within six months after his the member's demand therefor for payment, but not less than ninety days after ceasing to be a teacher or employee, the sum of his the member's contributions and the accumulated regular interest thereon on the contributions.  If such the member has five or more years of creditable earned service and elects, prior to before the time his the member's membership would otherwise terminate, elects to leave his these contributions in the system, he shall the member, unless and until such these contributions are paid to him as provided by this section prior to before the attainment of age sixty, remain remains a member of the system and shall be is entitled to receive a deferred retirement allowance commencing beginning at age sixty computed as a service retirement allowance in accordance with Section 9-1-1550.  Provided, that the The employee annuity shall must be the actuarial equivalent at age sixty of the member's contributions with such the interest credits thereon on the contributions, if any, as shall be allowed by the board.  Should If a member die dies before retirement, the amount of his the member's accumulated contributions shall must be paid to his the member's estate or to such the person as he shall have the member nominated by written designation, duly acknowledged and filed with the board.
     Upon the death of a retired member who has not elected either Option 1 or Option 4 under Section 9-1-1620, a lump sum amount must be paid to the person as he has last nominated by written designation, duly acknowledged and filed with the board;  otherwise, it must be paid to his estate.  The amount must be equal to the excess, if any, of his total accumulated contributions at the time his retirement allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 2, 3, and 5 of SECTION  9-1-1620, during their lifetimes.
     Upon the death of a member who did not select a survivor option or who selected a survivor option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member.  Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary.  The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary.  This paragraph does not govern lump sum distributions payable on account of members retiring under former Option 1 of Section 9-1-1620 or on account of members retiring before July 1, 1990 under former Option 4 of Section 9-1-1620."

F.      The first paragraph of Section 9-1-1910 of the 1976 Code is amended to read:

     "Any person who has retired or may retire under the provisions of the South Carolina Retirement Act while in service as such teacher or employee, and A member with five or more years of earned service, eligible for service retirement, who has twenty or more years of creditable service shall must be paid from the general fund of the State, a monthly sum in addition to the retirement allowance he may receive under the act, due the member under this chapter sufficient to provide him the member a minimum eighty dollars per a month, plus one dollar per a month for each completed year of creditable service in excess of twenty years.  Provided, however, that should such If the teacher or employee elect elects to receive a reduced retirement allowance as provided in the act this chapter, he shall the teacher or employee must be paid under the provisions of this section only such the amount as would be paid under the section had he the teacher or employee not elected such the optional allowance."

G.      Section 9-11-10 of the 1976 Code, as last amended by Act 72 of 1999, is further amended to read:

     "Section 9-11-10.      The following words and phrases as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings:
     (1)      "System" shall mean the South Carolina Police Officers Retirement System.
     (2)      "State" shall mean the State of South Carolina.
     (3)      "Board" shall mean the State Budget and Control Board.
     (4)      "Medical board" shall mean the board provided for in SECTION  9-11-30(2).
     (5)      "Employer" shall mean (a) the State, (b) any political subdivision, agency or department of the State which employs police officers and which shall have been admitted to the System as provided in SECTION  9-11-40 and (c) any service organization, the membership of which is composed solely of persons eligible to be members as defined by this section, if the compensation received by the employees of such service organizations shall be provided from moneys paid by the members as dues, or otherwise, or from funds derived from public sources and if the contributions prescribed by this Title shall be paid from the funds of the service organization.
     (6)      "Police officer" means a person who receives his salary from an employer and who is:
           (a)      required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in the State;
           (b)      an employee after January 1, 2000, of the South Carolina Department of Corrections or the Department of Juvenile Justice and by the terms of his employment is a peace officer as defined by Section 24-1-280.
     Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.
     (7)      "Member" shall mean any police officer included in the membership of the System, as provided in SECTION  9-11-40 and for the purpose of establishing additional service credit it shall mean in service.
     (8)      "Service" shall mean service as a police officer rendered to any employer.
     (9)      "Credited service" shall mean service for which credit is allowable as provided in SECTION  9-11-50.
     (10)      "Supplemental Allowance Program" shall mean the Supplemental Allowance Program established under the System as of July 1, 1966 and as in effect on June 30, 1974.
     (11)      "Class Two service" shall mean credited service subsequent to June 30, 1974 as a Class Two member, as defined in subsection (7) of SECTION  9-11-40, and credited service prior to July 1, 1974, or date of membership, if later, with respect to which contributions shall have been made by a member, or on his behalf, under the Supplemental Allowance Program or pursuant to subsection (2), (3), (4) or (10) of SECTION  9-11-210.
     (12)      "Class One service" shall mean credited service which is not Class Two service.
     (13)      "Compensation" shall mean the total remuneration paid to a police officer for service rendered to an employer for his full normal working time;  when compensation includes maintenance, fees and other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer.
     (14)      "Average final compensation after July 1, 1986" means the average annual compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average;  a quarter means a period January through March, April through June, July through September, or October through December.  An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation.  Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.
     (15)      "Retirement allowance" shall mean monthly payments for life under the System payable as provided in SECTION  9-11-160.
     (16)      "Beneficiary" shall mean any person in receipt of a retirement allowance or other benefit as provided by the System.
     (17)      "Other fund" shall mean (a) the South Carolina Retirement System or (b) the Police Insurance and Annuity Fund of the State of South Carolina.
     (18)      "Aggregate contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the System, including any amounts transferred from another fund to the System as provided in SECTION  9-11-210(6).
     (19)      "Regular interest" shall mean interest compounded annually at such rate or rates as shall be determined for a particular purpose by the Board in accordance with SECTION  9-11-30.
     (20)      "Accumulated contributions" shall mean a member's aggregate contributions, together with regular interest thereon, including regular interest on contributions paid to the System by an employer in lieu of contributions by the member under the Supplemental Allowance Program on account of credited service rendered prior to his date of participation in said Program.
     (21)      "Aggregate additional contributions" shall mean the sum of all the contributions made by a member pursuant to SECTION  9-11-210 as in effect prior to July 1, 1974 and any amounts transferred from another fund which are treated as additional contributions pursuant to SECTION  9-11-210 as in effect prior to July 1, 1974 or SECTION  9-11-210(6) as amended as of said date.
     (22)      "Accumulated additional contributions" shall mean a member's aggregate additional contributions, together with regular interest thereon.
     (23)      "Actuarial equivalent" shall mean a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the Board, as provided in SECTION  9-11-30.
     (24)      "Date of establishment" shall mean July 1, 1962.
     As used in this chapter, unless a different meaning is plainly required by the context:
     (1)      'Accumulated additional contributions' means a member's aggregate additional contributions, together with regular interest on the contributions.
     (2)      'Accumulated contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the employee annuity savings fund, together with regular interest on the account, as provided in this chapter.
     (3)      'Active member' means a member who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.
     (4)      'Actuarial equivalent' means a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the board, as provided in Section 9-11-30.
     (5)      'Aggregate additional contributions' means the sum of all the contributions made by a member pursuant to Section 9-11-210 in effect before July 1, 1974, and any amounts transferred from another fund which are treated as additional contributions pursuant to Section 9-11-210 in effect before July 1, 1974, or Section 9-11-210(6) as amended as of that date.
     (6)      'Aggregate contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the system, including any amounts transferred from another fund to the system as provided in Section 9-11-210(6).
     (7)      'Average final compensation after July 1, 1986' means the average annual compensation of a member during the twelve consecutive quarters of the member's creditable service on which regular contributions as a member were made to the system producing the highest average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.
     (8)      'Beneficiary' means a person in receipt of a retirement allowance or other benefit provided by the system.
     (9)      'Board' means the State Budget and Control Board acting through its Division of Retirement Systems.
     (10)      'Class one service' means credited service which is not class two service.
     (11)      'Class two service' means credited service after June 30, 1974, as a class two member, as defined in subsection (7) of Section 9-11-40, and credited service before July 1, 1974, or date of membership, if later, with respect to which contributions have been made by a member, or on the member's behalf, under the supplemental allowance program or pursuant to subsection (2), (3), or (10) of Section 9-11-210.
     (12)      'Compensation' means the total remuneration paid to a police officer for service rendered to an employer for his full normal working time; when compensation includes maintenance, fees and other things of value, the board shall fix the value of that part of the compensation not paid in money directly by the employer.
     (13)      'Credited service' means a member's earned service and purchased service.
     (14)      'Date of establishment' means July 1, 1962.
     (15)      'Earned service' means the paid employment of a member of the system with an employer participating in the system where the member makes regular retirement contributions to the system.
     (16)      'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.
     (17)      'Employer' means:
           (a)      the State;
           (b)      a political subdivision, agency, or department of the State which employs police officers and which has been admitted to the system as provided in Section 9-11-40; and
           (c)      a service organization, the membership of which is composed solely of persons eligible to be members as defined by this section, if the compensation received by the employees of the service organization is provided from monies paid by the members as dues, or otherwise, or from funds derived from public sources and if the contributions prescribed by this chapter are to be paid from the funds of the service organization.
     (18)      'Medical board' means the board provided for in Section 9-11-30(2).
     (19)      'Member' means a person included in the membership of the system, as provided in this chapter.
     (20)      'Military service' means:
           (a)      service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;
           (b)      service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve; and
           (c)      service as a member of the Army National Guard or Air National Guard of this or any other state.
     (21)      'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.
     (22)      'Other fund' means:
           (a)      the South Carolina Retirement System; or
           (b)      the Police Insurance and Annuity Fund of the State of South Carolina.
     (23)      'Police officer' means a person who receives his salary from an employer and who is:
           (a)      required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in this State; or
           (b)      an employee after January 1, 2000, of the South Carolina Department of Corrections or the South Carolina Department of Juvenile Justice who, by the terms of his employment, is a peace officer as defined by Section 24-1-280.
     Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.
     (24)      'Public Service' means service as an employee of the government of the United States, any state or political subdivision of the United States, or any agency or instrumentality of any of these.  The term 'public service' does not include 'educational service' or 'military service' as defined in this section.
     (25)      'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.
     (26)      'Regular interest' means interest compounded annually at the rate or rates determined for a particular purpose by the board in accordance with Section 9-11-30.
     (27)      'Retirement allowance' means monthly payments for life under the system payable as provided in Section 9-11-160.
     (28)      'State' means the State of South Carolina.
     (29)      'Supplemental allowance program' means the supplemental allowance program established under the system as of July 1, 1966, and as in effect on June 30, 1974.
     (30)      'System' means the South Carolina Police Officers Retirement System."

H.      Items (a) and (d) of Section 9-11-40(1) of the 1976 Code are amended to read:

     "(a)      Any A county, municipality, or other political subdivision of the State, and any an agency or department thereof of a political subdivision or any a service organization referred to in item (5) of Section 9-11-10 9-11-10(17)(c) may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements hereof of this section and the rules and regulations of the board.  Such The application shall must set forth the requested date of admission, which shall must be the January first, or the April first, or the July first, or the October first next following receipt by the board of such the application, except that in the case of any applications so received prior to before January 1, 1963, the requested date of admission may be July 1, 1962.
     (d)      Any An employer whose requested date of admission is on or after July 1, 1974, shall agree to make contributions on account of all service prior to before the date of admission rendered by members in its employ who make contributions with respect to such service as provided in Section 9-11-210(4)."

I.      Section 9-11-40(4) of the 1976 Code is amended to read:

     "(4)      All persons who become employed as police officers by the State or other employer after the employer's date of admission to the system under the provisions of this section shall must become members, as a condition of their employment.
     Notwithstanding the foregoing provisions of this subsection, no person shall become a member on or after July 1, 1963 unless his employer certifies to the system that his service as a police officer will require requires at least one thousand six hundred hours per a year of active duty and that his the person's salary for such the service will be is at least two thousand dollars per a year.  If in any year subsequent to such after this certification the member does not render at least one thousand six hundred hours of active duty as a police officer, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 shall apply."

J.      The fifth paragraph of Section 9-11-40(10) of the 1976 Code is amended to read:

     "Notwithstanding the foregoing provisions of this subsection, no fireman shall become a member on or after July 1, 1976, unless his the member's employer certifies to the system that his service as a fireman will require requires at least one thousand, six hundred hours per a year of active duty and that his the member's salary for such the service will be is at least two thousand dollars per a year.  If in any year subsequent to such after this certification the member does not render at least one thousand, six hundred hours of active duty as a fireman, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 of the 1976 Code shall apply."

K.      Section 9-11-50 of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:

     "Section 9-11-50.      (1)      The credited service of a member shall include all service as a police officer rendered to an employer since he last became a member and in respect of which he made contributions to the System.  It shall also include, in the case of a member (a) who became such on or before June 30, 1963, or who became such as of July 1, 1962 pursuant to subsection (1) (b) or (1) (c) of SECTION  9-11-40, and (b) who remained a member continuously thereafter until his death or his retirement under the System and (c) who was, immediately prior to his becoming a member, a participant in another fund, service which was credited to him under such other fund;  provided that within two months of the date of his membership he shall have caused the amount of his full contributions made under such other fund in respect of such service to be transferred to the System.  In addition, in the case of any other member who becomes a member when first eligible and continues as a member until his death or his retirement, credited service shall also include all service prior to his date of membership for which contributions are made as provided in SECTION  9-11-210(4) or SECTION  9-11-210(10) and SECTION  9-11-220(2).
     (2)      When membership ceases for any reason other than death or retirement, the service credited to the member shall be cancelled and, should the police officer again become a member, he shall enter the System as a police officer not entitled to credit for previous service, unless he repays his accumulated contributions previously withdrawn as provided in subsection (3) of this section.
     (3)      Any person employed as a police officer whose membership in the System was contingent on his own election and who elected not to become a member of the System may apply for and be admitted to membership.  Anything herein contained to the contrary notwithstanding, the credited service of any such person shall include service rendered to an employer since he was first eligible to become a member;  provided that he shall pay to the System, by a single payment prior to his retirement or death, the contributions specified in SECTION  9-11-210(4) with respect to the period of service since he first became eligible for membership.  Any such member who makes such payment to establish credit for such service may also receive credit for service prior to his employer's date of participation in the System by making contributions pursuant to SECTION  9-11-210(4) on account of such service.  Any former member who withdrew his contributions and has again become a member of the System may have the service credited to him under the System at the time he withdrew his contributions restored to him, provided he pays to the System, by a single payment prior to his retirement or death, the amount of the contributions previously withdrawn, together with the interest which would have been credited thereon had such contributions remained in the System to the date of his payment of such amount to the System.
     (4)      Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard;  provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system under this title.
     (5)      A period of time up to one year for each pregnancy not to exceed a total of three years of service credit may be established for maternity leave if the member pays the full actuarial cost as determined by the board.  The payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year.  To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.
     (6)      (a)      A former employee of the United States employed in this State by an employer covered by the system and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment must not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service.
                 (b)      Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.
     (7)      At retirement, after March 31, 1991, a member shall receive service credit for not more than ninety days of his unused sick leave at no cost to the member.  The leave must be credited at a rate where twenty days of unused sick leave equals one month of service.  This additional service credit may not be used to qualify for retirement.
     (A)      An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.  A member may not establish credit for a period of public service for which the member also may receive a retirement benefit from another retirement plan.
     (B)      An active member may establish service credit for any period of paid educational service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.  A member may not establish credit for a period of educational service for which the member also may receive a retirement benefit from another retirement plan.
     (C)      An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.
     (D)      An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.
     (E)      An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased.  Periods of less than a year must be prorated.
     (F)      An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.
     (G)      An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments.  Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.
     (H)      An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter.  Amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.
     (I)      Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.
     (J)      A member may purchase each type of service under this section once each fiscal year.
     (K)      At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member.  The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.
     (L)      The board shall promulgate regulations, and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter."

L.      Subsections (1) and (3) of Section 9-11-60 of the 1976 Code, as last amended by Act 424 of 1988, are further amended to read:

     "(1)      A member may retire upon written application to the board system setting forth at what time, not no more than ninety days before nor more than six months subsequent to after the execution and filing of the application, he the member desires to be retired, if the member at the time specified for his the member's service retirement has:
           (a)      five or more years of earned service;
           (b)      attained the age of fifty-five years; and completed five or more years of credited service and has
           (c)      separated from service and, if the time specified is subsequent to the date of application, notwithstanding that, during the period of notification, he may have separated from service.
     (3)      Reserved. Any member who has completed five or more years of credited service but has not attained age fifty-five, upon written application to the governing or administering board of his retirement system, may retire on an early retirement allowance commencing upon his attainment of age fifty-five, as follows:
           (a)      If the member is less than fifty-five years of age and has at least twenty-five years of creditable service, he may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon his paying into his retirement system the actuarial cost as determined by regulation promulgated by the governing or administering board of his retirement system, provided the actuarial cost is determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater.
           (b)      The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, and any service credit purchased must qualify the member for retirement and the member must retire within ninety days subsequent to the purchase."

M.      Section 9-11-70(1) of the 1976 Code is amended to read:

     "(1)      Any A member in service who has completed five or more years of credited earned service but has not attained age fifty-five may, upon written application to the board, retire on an early retirement allowance commencing upon his attainment of beginning when the member attains age fifty-five."

N.      The first paragraph of Section 9-11-80(1) of the 1976 Code is amended to read:

     "Upon On the application of a member in service or of his the member's employer, any a member who has five or more completed years of credited earned service or any contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his the member's duties regardless of length of membership may be retired by the retirement board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

O.      Section 9-11-130(1) of the 1976 Code is amended to read:

     "(1)      The person nominated by a member, pursuant to Section 9-11-110, to receive a lump sum amount in the event of his death if the member dies before retirement may, if the member: (a) has five or more years of earned service; (b) dies in service; and (c) has either attained age fifty-five or has accumulated dies after the attainment of age fifty-five or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the lump sum amount otherwise payable under item (a) of subsection (1) of Section 9-11-110(1)(a) an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 1 B under Section 9-11-150(A).  For purposes of the benefit calculation, a member under age fifty with less than thirty twenty-five years' credit is assumed to be fifty years of age."

P.      Section 9-11-210(4) of the 1976 Code, as amended by Act 420 of 1994, is further amended to read:

     "(4)      A member who has rendered service before his date of membership which is not otherwise credited under the system may elect by written notice filed with the board at any time before retirement to establish credit for the service as Class One service in the case of a Class One member or as Class Two service in the case of a Class Two member.  A member who makes this election shall make a special contribution to the system before retirement, determined as follows:
           (a)      In the case of a Class One member, the amount which would have resulted if the member had contributed twenty-one dollars during each month of the service for which credit is to be established and such contributions were accumulated at regular interest to the date of payment;  or
           (b)      In the case of a Class Two member, six and one-half percent of the member's monthly rate of compensation at the time the contribution is made multiplied by the number of months of service for which credit is to be established. Reserved."

Q.      Section 9-11-220(2)(a) of the 1976 Code is amended to read:

     "(a)      Reserved. If the special contribution is made pursuant to Section 9-11-210(2), the employer contribution shall be equal to such special contribution."

R.      Sections 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, and 9-11-330, all of the 1976 Code, are repealed.

S.      Section 9-1-1620 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

     "Section 9-1-1620.      Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:
     Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that if he dies within ten years from his retirement date, an amount equal to his accumulated contributions at retirement, less one-one hundred twentieth of the amount for each month for which he has received a retirement allowance payment, must be paid to his legal representatives or to the person he nominates by written designation duly acknowledged and filed with the board;
     Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;
     Option 3. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;
     Option 4. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit.  Cost-of-living and other special increases in benefits are not applied to the amount advanced under this option;
     Option 5. A member may elect either Option 2 or 3 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;
     Option 6. A member may elect Option 2 or 3 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as each beneficiary survives him.  The benefit reduction factor must be based on the average age of the beneficiaries.
     A member having elected Option 2, 3, or 5 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status.  This change may be accomplished only by filing with the system:  (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form.  The revocation and election of a new option is effective on the first day of the month in which the new option is elected.  The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option.  The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.
     A member who retired under the provisions of Option 4 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date.  This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance.  If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.
     The board may approve a five-year pay-out plan developed by the actuary on the basis of the total retirement allowance for surviving beneficiaries, other than a spouse.
     (A)      No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:
     Option A.      The maximum retirement allowance payable under law for the life of the member.  Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.
     Option B.      A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries.  The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries.  If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.
     Option C.      A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries.  The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries.  If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.
     (B)(1)      A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under law.  The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected."
           (2)      Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice.  A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.
     (C)      Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement.  The provisions of subsection (B) apply to these members but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).
     (D)      A member who retired under the provisions of the previously existing Social Security Advance Option before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date.  This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance.  If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992."

T.      Section 9-11-150 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

     "Section 9-11-150.      Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:
     Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that the reduced allowance continues after his death to and for the life of the beneficiary, or to the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;
     Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;
     Option 3. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit.  Cost-of-living and other special increases in benefits are not applied to the amount advanced under this Option;
     Option 4. A member may elect either Option 1 or 2 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;
     Option 5. A member may elect Option 1 or 2 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as the beneficiary survives him.  The benefit reduction factor must be based on the average age of the beneficiaries.
     A member having elected Option 1, 2, or 4 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status.  This change may be accomplished only by filing with the system:  (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form.  The revocation and election of a new option is effective on the first day of the month in which the new option is elected.  The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option.  The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.
     A member who retired after the provisions of Option 3 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date.  This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance.  If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.
     (A)      No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:
     Option A.      The maximum retirement allowance payable under law for the life of the member.  Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.
     Option B.      A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries.  The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries.  If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.
     Option C.      A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member s elects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries.  The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries.  If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.
     (B)(1)      A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under law.  The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected.
           (2)      Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice.  A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.
     (C)      Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement.  the provisions of subsection (B) apply to these members, but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).
     (D)      A member who retired under the provisions of the previously existing Social Security Advance Option before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date.  This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance.  If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992."

U.      Section 9-11-110(2) of the 1976 Code is amended to read:

     "(2)      Upon the death of a retired member a lump sum amount must be paid to the person he has last nominated by written designation, duly acknowledged and filed with the Board, otherwise to his estate.  The lump sum amount must be equal to the excess, if any, of his total accumulated contributions at the time his allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 1, 2, and 4 of SECTION  9-11-150, during their lifetimes.  Upon the death of a member who did not select a survivor option or who selected a survivor option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member.  Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary.  The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary."

V.      Section 9-1-1660 of the 1976 Code is amended to read:

     "Section 9-1-1660.      (1)(A)      The person nominated by a member to receive the full amount of his the member's accumulated contributions in the event of his death if the member dies before retirement may, if such the member:
           (1)      has five or more years of earned service;
           (2)      dies while in service; and
           (3)      has either attained the age after the attainment of age sixty-five sixty years or after the accumulation of has accumulated fifteen years or more of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his the member's death and had named the person as beneficiary under an election of Option 2 B of Section 9-1-1620(A).  For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.
     (2)(B)      Any A person otherwise eligible under subsection (1) (A) of this section to elect to receive an allowance who has attained age sixty-five or after the accumulation of thirty years of creditable service or after the attainment of age sixty with twenty or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, may make the election provided for in subsection (1) (A).  The monthly payments under Option 2 B to the person date from the time of the repayment of the accumulated contributions to the system."

W.1.      Section 1-11-730 of the 1976 Code, as last amended by Act 230 of 1996, is further amended by adding an appropriately lettered subsection at the end to read:

     "(  )      A person covered by the state health and dental plans who terminated employment with at least eighteen years retirement service credit by a state-covered entity before eligibility for retirement under a state retirement system prior to 1990 is eligible for the plans effective on the date of retirement, if this person returns to a state-covered entity and is covered by the state health and dental plans and completes at least two consecutive years in a full-time, permanent position prior to the date of retirement."

     2.      Notwithstanding the general effective date of this section, this subsection takes effect July 1, 2000.

X.      This section takes effect January 1, 2001.

SECTION 68

TO AMEND SECTION 9-8-60, AS AMENDED, OF THE 1976 CODE, RELATING TO RETIREMENT AND RETIREMENT ALLOWANCES UNDER THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO EXTEND THE DATE BY WHICH A JUDGE OR SOLICITOR MAY RETIRE TO THE END OF THE CALENDAR YEAR IN WHICH THE JUDGE OR SOLICITOR ATTAINS THE AGE OF SEVENTY-TWO YEARS RATHER THAN UPON ATTAINING AGE SEVENTY-TWO.

The first paragraph of Section 9-8-60(1) of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:

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

SECTION 69

TO AMEND TITLE 11 OF THE 1976 CODE, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 49 SO AS TO ENACT THE "TOBACCO SETTLEMENT REVENUE MANAGEMENT AUTHORITY ACT" PROVIDING FOR THE ESTABLISHMENT OF A STATE INSTRUMENTALITY TO RECEIVE PAYMENTS FROM TOBACCO PRODUCT MANUFACTURERS UNDER THE MASTER SETTLEMENT AGREEMENT BETWEEN THIS STATE AND TOBACCO PRODUCT MANUFACTURERS, AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES RELATING TO THE RECEIPT, ALLOCATION, SECURITIZATION, AND DISPOSITION OF THESE PAYMENTS; TO AUTHORIZE THE AUTHORITY TO ISSUE BONDS FOR AUTHORIZED PURPOSES TO BE SECURED BY AND PAID SOLELY FROM THESE PAYMENTS; TO PROVIDE FOR THE DISPOSITION OF THESE PAYMENTS NOT NEEDED FOR THE EXPENSES OF THE INSTRUMENTALITY OR FOR DEBT SERVICE ON THE BONDS; TO AMEND SECTIONS 1-23-10, 8-13-770, AND 15-78-60, ALL AS AMENDED, RELATING TO THE DEFINITION OF STATE AGENCY FOR PURPOSES OF COVERAGE AND EXEMPTION FROM THE ADMINISTRATIVE PROCEDURES ACT, THE BOARDS ON WHICH MEMBERS OF THE GENERAL ASSEMBLY MAY SERVE, AND THE EXCEPTIONS TO THE WAIVER OF IMMUNITY UNDER THE TORT CLAIMS ACT, SO AS TO EXEMPT THE AUTHORITY FROM THE ADMINISTRATIVE PROCEDURES ACT, TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO SERVE ON THE AUTHORITY, TO ADD AN EXCEPTION TO THE TORT CLAIMS ACT FOR THE ACTIONS OF THE AUTHORITY, AND TO MAKE THESE PROVISIONS SEVERABLE, BY ADDING SECTION 11-11-170 SO AS TO CREATE IN THE STATE TREASURY THE HEALTHCARE TOBACCO SETTLEMENT FUND, THE TOBACCO COMMUNITY TRUST FUND, THE TOBACCO SETTLEMENT ECONOMIC DEVELOPMENT FUND AND THE TOBACCO SETTLEMENT LOCAL GOVERNMENT FUND AS FUNDS SEPARATE FROM ALL OTHER FUNDS AND TO CREDIT TO THESE FUNDS IN STATED PERCENTAGES ALL REVENUE RECEIVED BY THIS STATE FROM THE MASTER SETTLEMENT AGREEMENT OR BOND PROCEEDS DERIVED FROM THE SECURITIZATION OF THESE PROCEEDS; TO PROVIDE THAT EARNINGS ON THESE FUNDS ARE CREDITED TO THEM, TO PROVIDE FOR THE USE OF FUND PROCEEDS, INCLUDING HEALTH PROGRAMS, LOSS REIMBURSEMENTS TO TOBACCO GROWERS, QUOTA OWNERS, AND WAREHOUSEMEN, REVITALIZATION OF TOBACCO COMMUNITIES, AND ECONOMIC DEVELOPMENT, AND FOR THE OPERATION OF AND SOURCE OF GRANT FUNDS FOR THE OFFICE OF LOCAL GOVERNMENT OF THE DIVISION OF REGIONAL DEVELOPMENT OF THE STATE BUDGET AND CONTROL BOARD, TO PROVIDE SPECIAL DISTRIBUTIONS FOR MASTER SETTLEMENT AGREEMENT REVENUES RECEIVED BEFORE JULY 1, 2001; AND BY ADDING SECTION 13-1-45 ESTABLISHING THE SOUTH CAROLINA WATER AND WASTEWATER INFRASTRUCTURE FUND AND PROVIDING FOR ITS OPERATION, INCLUDING THE DETERMINATION OF ELIGIBILITY FOR PROJECTS TO BE FUNDED AND THE MANNERS OF FUNDING.

A.1.      The General Assembly finds that:
     (1)      On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the "Master Settlement Agreement", with the State.  The master settlement agreement obligates these manufacturers, in return for a release of past, present, and certain future claims against them as described in the agreement, to pay substantial sums to the State, tied in part to their volume of sales.
     (2)      The General Assembly recognizes that it may be in the best interest of the State to issue special source bonds, in order to convert all or a portion of these future payments to be received under the master settlement agreement into current funds.  These bonds will be payable solely from and secured solely by the future receipts under the master settlement agreement, and will not constitute a claim against the full faith, credit, and taxing power or the general fund of the State.
     (3)      In order to provide for the receipt and handling of the payments under the master settlement agreement, from the tobacco product manufacturers, for the issuance of these bonds, for separating the issuance of these bonds from the general credit of the State, and for the administration of the proceeds of the bonds, the General Assembly has determined to create a separate and distinct instrumentality of the State to which the rights of the State under the master settlement agreement are transferred and to grant it the powers and duties prescribed in this act.

     2.      Title 11 of the 1976 Code is amended by adding:

"CHAPTER 49

'Tobacco Settlement Revenue Management Authority Act'

     Section 11-49-10.      This chapter may be cited as the 'Tobacco Settlement Revenue Management Authority Act'.

     Section 11-49-20.      As used in this chapter:
     (1)      'Authority' means the Tobacco Settlement Revenue Management Authority, as established by this chapter.
     (2)      'Board' means the governing body of the authority.
     (3)      'Bonds' means special source bonds, notes, or other evidences of indebtedness of the authority payable solely from and secured solely by the State's tobacco receipts, issued pursuant to the authorizations contained in this chapter and in Article X, Section 13(9) of the Constitution of this State.  The bonds are 'bonds' for purposes of Section 12-2-50 and any successor provision.
     (4)      'Escrow' means the escrow as that term is defined in the master settlement agreement.
     (5)      'Escrow agent' means the escrow agent as that term is defined in the master settlement agreement.
     (6)      'Independent auditor' means the independent auditor as that term is defined in the master settlement agreement.
     (7)      'Master settlement agreement' means the settlement agreement and related documents entered into on November 23, 1998, by the State and the four principal United States tobacco product manufacturers, as amended and supplemented.
     (8)      'Participating manufacturers' means the participating manufacturers as that term is defined in the master settlement agreement.
     (9)      'State' or 'this State' means the State of South Carolina.
     (10)      'State's tobacco receipts' means all of the payments to be made by the escrow agent and derived from payments made by the participating manufacturers and allocated to this State under the master settlement agreement, other than pursuant to Article XVII of that agreement.

     Section 11-49-30.      (A)      There is created the Tobacco Settlement Revenue Management Authority, a public body corporate and politic and an instrumentality of this State, with the responsibility of effecting the public purpose of this chapter.
     (B)      The purpose of the authority is to receive all of the state's tobacco receipts, to issue bonds of the authority payable solely from and secured solely by the state's tobacco receipts or any tobacco receipts reserved fund created from it for the purposes authorized in this chapter, and to manage and dispose of the state's tobacco receipts for the purposes and in the manner authorized in this chapter.
     (C)      Upon termination of the existence of the authority, title to all property, real and personal, owned by it, including net earnings, vests in the State.

     Section 11-49-40.      (A)      The authority is governed by a board, which shall consist of five members as follows: the Governor or his designee, the State Treasurer, the Comptroller General, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee.  The Governor shall serve as chairman; and in the absence of the Governor, meetings must be chaired by the State Treasurer.  All members serve ex officio.
     (B)      Members of the board serve without pay but are allowed the usual mileage, per diem, and subsistence as provided by law for members of State boards, committees, and commissions.
     (C)      Members of the board and its employees, if any, are subject to the provisions of Chapter 13, Title 8, the Ethics, Government Accountability, and Campaign Reform Act, and Chapter 17 of Title 2, relating to lobbying.
     (D)      To the extent that administrative assistance is needed for the functions and operations of the authority, the board may obtain this assistance from the Office of the State Treasurer and the State Budget and Control Board, and any successor agency, office or division, each of which must provide the assistance requested by the board at no cost to the board or to the authority other than for expenses incurred and paid to entities that are not agencies or departments of the State.  The board must retain ultimate responsibility and provide proper oversight for the implementation of this chapter.
     (E)      The board shall exercise the powers of the authority.  A majority of the members of the board constitutes a quorum for the purpose of conducting all business.  The board shall determine the number of personnel it requires, their compensation and duties.

     Section 11-49-50.      The State's tobacco receipts due to the State after June 30, 2001, and the right to receive them as they are distributed from the escrow are assigned to the authority.  On and after  the date these revenues are pledged, the State shall have no right, title, or interest in or to the state's tobacco receipts; and the state's tobacco receipts are property of the authority and not of the State, and must be owned, received, held, and disbursed by the authority or the trustee for the holders of bonds and not by the State.  The State directs the independent auditor and the escrow agent to make all these payments to the authority in accordance with instructions that may be given by the authority from time to time.  The assignment and direction made in this subsection are irrevocable during any time when bonds are outstanding under this chapter plus one year and one day thereafter and are a part of the contractual obligation owed to the bond holders.  On or before the date of delivery of any bonds, the State through the State Treasurer shall notify the independent auditor and the escrow agent that the State's tobacco receipts have been assigned to the authority and shall instruct the independent auditor and the escrow agent that, subsequent to the delivery date for bonds and irrevocably during the time when any bonds are outstanding, the State's tobacco receipts are to be paid directly to the authority or its designee.

     Section 11-49-60.      In addition to the powers contained elsewhere in this chapter, the board has all power necessary, useful, or appropriate to operate and administer the authority, to effectuate the purposes of the authority, and to perform its other functions including, but not limited to, the power to:
     (1)      have perpetual succession;
     (2)      sue and be sued in its own name;
     (3)      adopt, promulgate, amend, and repeal bylaws, not inconsistent with provisions in this chapter for the administration of the authority's affairs and the implementation of its functions;
     (4)      have a seal and alter it at its pleasure, although the failure to affix the seal does not affect the validity of an instrument executed on behalf of the authority;
     (5)      enter into contracts, arrangements, and agreements with government units and other persons and execute and deliver all financing agreements, including bonds issued to support the borrowing by such government units to pay eligible costs of qualified projects, and other instruments necessary or convenient to the exercise of the powers granted in this chapter;
     (6)      enter into agreements with a department, agency, political subdivision or instrumentality of the United States or of this State or of another State for the purpose of planning and providing for the financing of qualified projects or for the administration of the purposes and programs of this chapter;
     (7)      enter into agreements with the tobacco trust fund for the purpose of managing and controlling the transfer of funds between the authority and the tobacco trust fund and governing the investment and the monitoring and recordkeeping of these funds, for purposes of maintaining the exemption from federal income tax of interest on bonds and for other purposes;
     (8)      enter into, amend, and terminate agreements in the nature of interest rate swaps, forward security supply contracts, agreements for the management of interest rate risks, agreements for the management of cash flow, and other agreements of a similar nature, with respect to bonds issued pursuant to this chapter;
     (9)      procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public or private entity, including any department, agency, or instrumentality of the United States or this State, for the payment of any bonds, including the power to pay premiums or fees on any insurance, guarantees, letters of credit, and other forms of collateral or security or credit support;
     (10)      borrow money through the issuance of bonds as provided in this chapter, and through the issuance of notes in anticipation of the issuance of these bonds;
     (11)      enter into contracts and expend funds to obtain accounting, management, legal, financial consulting, trusteeship and other professional services necessary or convenient  to the operations of the authority; however, all matters relating to the designation and selection of bond counsel to the authority is within the discretion of the State Treasurer;
     (12)      in order to pay budgeted items pursuant to a budget adopted in accordance with Section 11-49-100, to expend funds for the costs of administering the operations of the authority;
     (13)      direct the escrow agent with respect to the disbursement to the authority of the State's tobacco receipts and receive and accept the State's tobacco receipts;
     (14)      enter into contracts or agreements necessary, proper, or convenient for the effectuation of the powers and purposes of the board and the authority;
     (15)      invest funds held by the authority under this chapter in any investment permitted for funds of this State, other than the State's retirement funds, or for funds of the political subdivisions of this State, in revenue bonds of government units, and in general obligations of other States whose general obligation debt is rated not lower than the general obligation debt of this State;
     (16)      direct the Attorney General of this State to enforce in the name of the State of South Carolina, and if permissible to enforce directly through its own attorneys in the name of the State, the master settlement agreement, but the board may not give any approval of any amendment to the agreement without the approval of the General Assembly.  This power is a part of the contractual obligation owed to the holders of any bonds; and
     (17)      do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter or that may be necessary for the furtherance and accomplishments of the purposes of the authority.
     Before the date which is one year and one day after which the authority no longer has any bonds outstanding, the authority has no authority to file a voluntary petition under Chapter 9 of the United States Bankruptcy Code or corresponding chapters or sections as may, from time to time, be in effect, and neither any public officer or any organization, entity, or other person shall authorize the authority to be or become a debtor under Chapter 9 or any successor or corresponding chapter or sections during the periods.  The provisions of this paragraph are for the benefit of the holders of any bonds and are a part of the contractual obligation  owed to such bondholders, and the State shall not modify or delete the provisions of this paragraph during the periods described in this chapter.
     In the exercise of its powers in this chapter, the board and the authority may obtain services in accordance with the procedures, guidelines, and criteria established by the board for that purpose and are not restricted by Chapter 35 of Title 11 or any successor provision.

     Section 11-49-70.      (A)      The board may issue bonds in the name of the authority, from time to time, for the purposes and in the manner Stated in this section.
     (B)      All bonds must be secured solely by and payable solely from the State's tobacco receipts, or the portion of the state's tobacco receipts the board determines to pledge for payment.
     (C)      Neither the members of the board nor any person executing the bonds or any notes are liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance of the bonds.
     (D)      The board has no power to pledge the faith, credit, or taxing power of this State or any of its political subdivisions in connection with the issuance of the bonds, and each bond must recite on its face that it is a special source bond of the authority issued pursuant to and in accordance with this chapter and Article X, Section 13(9) of the Constitution of this State, that it is secured solely by and payable solely from the State's tobacco receipts, that it is neither a general, legal, nor moral obligation of the State or any of its political subdivisions, and that it is not backed by the full faith, credit, or taxing power of this State or any of its political subdivisions.  Failure to include this language on the face of any bond does not cause the bond to become a general, legal or moral obligation of the State or any of its political subdivisions, or a pledge of the full faith, credit, or taxing power of this State or any of its political subdivisions.
     (E)      Any pledge of the State tobacco receipts made by the authority is valid and binding from the time when the pledge is made.  The State tobacco receipts pledged and then or thereafter received by the authority are immediately subject to the lien of the pledge without any physical delivery of the receipt or further act.  The lien of the pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice of them.  Neither the resolution of the authority or any other instrument by which a pledge is created need be recorded or filed to perfect the pledge.
     (F)      The authority may not issue any bond with a scheduled maturity later than thirty years after the date of issuance.
     (G)      When issuing bonds for the purpose described in subsection (J)(2) of this section or to refund the bonds, the authority may sell bonds either in a negotiated transaction with one or more lead underwriters selected by the board on the basis of criteria to be established by the board, or through a competitive bidding process in accordance with procedures to be established by the board.  The determination of whether to sell bonds through negotiation or through competitive bidding must be made by the board.
     (H)      The authority may not issue any bonds unless the board has first adopted its resolution authorizing the issuance, finding that the issuance and the proposed use of the bond proceeds is in accordance with this chapter, and setting out the terms and conditions of the bonds and the covenants of the authority with respect to the bonds.  These terms must include the issuance date or dates, the maturity date or dates, the principal amount, the interest rates or the means of determining the same, whether fixed or variable, the time, manner, and currency for paying interest and principal, the negotiability of the bonds and any restrictions relating to the registration of the bonds; and the covenants may include, without limitation, the establishment and maintenance of dedicated reserve funds for the payment of debt service on bonds if the State's tobacco receipts are inadequate in any year, restrictions on the later issuance of additional bonds or making the later issuance subject to certain conditions relating to available debt service coverage or otherwise, conditions on the timing of the release of all or a portion of the State's tobacco receipts to the general fund of this State, the enforcement of the master settlement agreement, or any other matter that the board considers appropriate, subject to subsection (I) of this section.
     (I)      The board may not authorize or cause the authority to enter into any covenant that purports to create a general, legal or moral obligation of this State or any of its political subdivisions or to pledge the full faith, credit, or taxing power of the State or any of its political subdivisions; nor may the board authorize or cause the authority to enter into any covenants that purport to create a right on the part of the board, the authority, any bondholder, or any trustee any right to recover funds consisting of the State's tobacco receipts once those funds have been deposited into the general fund of the State in accordance with the terms of this chapter.  Any covenant in violation of this subsection is void and of no effect.
     (J)      Subject to the requirements of this section, the board may authorize the issuance of bonds of the authority for the following purposes:
           (1)      refunding, on a current or advance-refunding basis, any outstanding bonds of the authority; or
           (2)      obtaining funds for delivery to the funds as provided in Section 11-11-170.
     All proceeds of bonds issued for the purpose described in item (2) of this subsection must be delivered promptly to the respective fund, except as needed to defray the costs of issuance of the bonds or to establish any required reserve fund for the bonds.
     The bonds and the issuance of the bonds are subject to the provisions of Sections 11-15-20 and 11-15-30 and any successor provisions.

     Section 11-49-80.      The authority and the board shall have no other assets or property except the State's tobacco receipts as received, and the right to receive the State's tobacco receipts.

     Section 11-49-90.      The authority and the board have no power to incur debt or obligations or in any way to encumber their assets except by the issuance of bonds, including the making of covenants in relation to the issuing of bonds and notes in anticipation of the issuance of the bonds, and the incurring of expenses and obligations as authorized in Section 11-49-60.

     Section 11-49-100.      All accounts of the authority must be held and maintained separately from all other funds, properties, assets, and accounts of this State and its other agencies.  The board shall keep an accurate account of all of its activities and all of its receipts and expenditures and annually, in the month of January shall make a report of its activities to the State Budget and Control Board, the report to be in a form prescribed by the State Budget and Control Board with the written approval of the State Auditor.  Audited financial statements must be submitted to the Comptroller General by October fifteenth following the end of the fiscal year.

     Section 11-49-110.      Reserved.

     Section 11-49-120.      (A)      The bonds and the income from the bonds are exempt from all taxation in the State except for inheritance, estate, or transfer taxes, regardless of the federal income tax treatment of the interest from the bonds.
     (B)      The exercise of the powers granted by this chapter are in all respects for the benefit of the citizens of the State and for the promotion of their welfare, convenience, and prosperity.  Property, whether real or personal, tangible or intangible, of the authority and the income and operations of the authority are exempt from taxation or assessment by the State or any of its political subdivisions.
     (C)      It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest any monies in their hands in bonds.  Nothing contained in this section may be construed as relieving any person from the duty of exercising reasonable care in selecting investments.

     Section 11-49-130.      All of the state's tobacco receipts not needed to pay (1) expenses of the authority during the next twelve months, or (2) debt service on bonds during the next twelve months, or fully to fund reserve accounts established by the board with respect to bonds, not less frequently than annually and at a time determined by the board in its resolutions authorizing the issuance of bonds, must be transferred to the funds as identified in Section 11-11-170.  The determination by the board of the amount to be transferred is final and is not reviewable by any court or other body.

     Section 11-49-140.      Notwithstanding any other provision of law, the provisions of Chapter 23 of Title 1, do not apply to the actions of the board and the authority.

     Section 11-49-150.      The General Assembly consents to and approves the master settlement agreement on behalf of this State and all of its agencies, departments, offices, political subdivisions, and other instrumentalities and bodies politic; and no such agencies, departments, offices, political subdivisions, and other instrumentalities or bodies politic of the State shall have any power or authority to bring suit against the participating manufacturers for claims in the nature of those settled by the master settlement agreement.  At any time when bonds are outstanding and for one year and one day thereafter, the State must not agree to the amendment of the master settlement agreement without the approval of the authority; and this restriction on amendment of the master settlement agreement is a part of the covenant with the bondholders.

     Section 11-49-160.      The State pledges and agrees with the authority, and the holders of the bonds in which the authority has included such pledge and agreement, that the State shall not limit or alter the rights of the authority to fulfill the terms of its agreements with such holders, and shall not in any way impair the rights and remedies of such holders or the security for such bonds until the bonds, together with the interest on them and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged.

     Section 11-49-170.      This act and all powers granted by this chapter must be liberally construed to effectuate its intent and their purposes, without implied limitations on them.  This chapter constitutes full and complete authority for all things herein contemplated to be done.  All rights and powers granted in this chapter shall be as cumulative with those derived form other sources and shall not, except as expressly stated in this chapter, be construed in limitation thereof.  Insofar as the provisions of this chapter are inconsistent with the provisions of any other act, general or special, the provisions of this chapter are controlling.  If any clause, sentence, paragraph, section, or part of this chapter be adjudged by any court of competent jurisdiction to be invalid, this judgment shall not affect, impair, or invalidate the remainder of this chapter but is confined in its operation to the clause, sentence, paragraph, section, or part of the chapter directly involved in the controversy in which the judgment shall have been rendered."

     3.      Section 1-23-10(1) of the 1976 Code, as amended by Act 77 of 1999, is further amended to read:

     "(1)      'Agency' or 'State agency' means each state board, commission, department, executive department or officer, other than the legislature, the courts, or the South Carolina Tobacco Community Development Board, or the Tobacco Settlement Revenue Management Authority, authorized by law to make regulations or to determine contested cases;"

     4.      Section 8-13-770 of the 1976 Code, as last amended by Act 77 of 1999, is further amended to read:

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

     5.      Section 15-78-60 of the 1976 Code, as last amended by Act 77 of 1999, is further amended by adding an appropriately numbered item to read:

     "(  )      the performance of any duty related to the service of the members of the Tobacco Settlement Revenue Management authority."

     6.      If a provision of this subsection, including the provisions of Chapter 49, Title 11 of the 1976 Code as added by it, or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this subsection or the chapter added by it which may be given effect without the invalid provision or application.  To this end, the provisions of this subsection and the chapter added by it are severable.

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

     "Section 11-11-170.      (A)      All revenues payable to this State pursuant to the Master Settlement Agreement as described in Section 11-47-20(e) must be used in the manner specified in this section.
     (B)(1)      Seventy-three percent of the revenues must be used for healthcare programs.  These revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Healthcare Tobacco Settlement Trust Fund.  Earnings on this fund must be credited to the fund.  The principal must remain in the fund and only the interest earnings may be appropriated and used for the following purposes:
                 (a)      for fiscal year 2000-2001 only, the first twenty million dollars available from the principal derived from securitization must be used for hospital base increase;
                 (b)      the South Carolina Seniors' Prescription Drug Program, as provided in Chapter 130 of Title 44;
                 (c)      home and community-based programs for seniors coordinated by the Department of Health and Human Services;
                 (d)      youth smoking cessation and prevention programs coordinated by the Department of Health and Environmental Control and the Department of Alcohol and Other Drug Abuse Services;
                 (e)      newborn infants hearing screening initiatives coordinated by the Department of Health and Environmental Control;
                 (f)      disease prevention and elimination of health disparities:  diabetes, HIV/AIDS, hypertension, and stroke, particularly in minority populations;
                 (g)      other health related issues as determined by the General Assembly.
           (2)      Fifteen percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Community Trust Fund.  Earnings on the fund must be credited to the fund.  This fund must be used to reimburse:
                 (a)      tobacco growers, tobacco quota holders, and tobacco warehousemen for actual losses due to reduced quotas since 1998.  For purposes of this subitem, 'tobacco quota owner' and 'tobacco grower' have the meaning provided in Section 46-30-210, and the reimbursement is for losses incurred in reduced cultivation of tobacco in this State.  Reimbursements must be made pursuant to eligibility requirements established by the South Carolina Tobacco Community Development Board created pursuant to Section 46-30-230;
                 (b)      after the reimbursement provided pursuant to subitem (a), the balance must be held in an escrow account through June 30, 2012, and used as provided in subitem (a).  After June 30, 2012, any account balance must be transferred to the Healthcare Tobacco Settlement Trust Fund.
           (3)      Ten percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Settlement Economic Development Fund.  Earnings on the fund must be credited to the fund.  This fund must be used for the following programs:
                 (a)      the first eighty million dollars credited to the fund is set aside to be used for the purposes specified in this item except for subitem (b);
                 (b)      for Fiscal Year 2000-2001 only, the next ten million dollars credited to the fund must be set aside to be available to be appropriated and used in accordance with the provisions of Section 12-37-2735; and
                 (c)      the remaining revenue credited to the fund must be used to fund the South Carolina Water and Wastewater Infrastructure Fund as provided in Section 13-1-45.
           (4)      Two percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Settlement Local Government Fund.  Earnings on the fund must be credited to the fund.  This fund must be used to fund the operation of and grants distributed by the Office of Local Government of the Division of Regional Development of the Budget and Control Board, or its successor in interest."

C.      All revenues received from the Master Settlement Agreement before July 1, 2001, must be deposited or transferred to a fund separate and distinct from the state general fund and are subject to special distributions as provided in Part I of this act.  These revenues are not considered part of the general fund of the State for any purpose whatever.

D.      Article 1, Chapter 1, Title 13 of the 1976 Code is amended by adding:

     "Section 13-1-45.      There is established under the direction and control of the Secretary of Commerce the South Carolina Water and Wastewater Infrastructure Fund for the purposes of selecting, assisting, and financing major qualified projects by providing financing assistance to governmental units and private entities for constructing and improving water and wastewater facilities that are necessary for public purposes, including economic development and for technology-related infrastructure grants for local units of government.
     (A)      As used in this section:
           (1)      'Fund' means the South Carolina Water and Wastewater Infrastructure Fund.
           (2)      'Department' means the Department of Commerce.
           (3)      'Financing agreement' means any agreement entered into between the department and a qualified borrower pertaining to financing assistance.  This agreement may contain, in addition to financing terms, provisions relating to the regulation and supervision of a qualified project, or other provisions as the department determines.  The term 'financing agreement' includes, without limitation, a loan or grant agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, ordinance or resolution, or similar instrument.
           (4)      'Government unit' means a municipal corporation, county, special purpose district, special service district, commissioners of public works, or another public body, instrumentality or agency of this State including combinations of two or more of these entities acting jointly to construct, own, or operate a qualified project, and any other state or local authority, board, commission, agency, department, or other political subdivision created by the General Assembly or pursuant to the Constitution and laws of this State which may construct, own, or operate a qualified project.
           (5)      'Loan obligation' means a note or other evidence of an obligation issued by a qualified borrower.
           (6)      'Financing assistance' means, but is not limited to, grants, contributions, credit enhancement, capital or debt reserves for debt instrument financing, interest rate subsidies, provision of letters of credit and credit instruments, provision of debt financing instrument security, and other lawful forms of financing and methods of leveraging funds that are approved by the department, and in the case of federal funds, as allowed by federal law.
           (7)      'Project revenues' means all rates, rents, fees, assessments, charges, and other receipts derived or to be derived by a qualified borrower from a qualified project or made available from a special source, and as provided in the applicable financing agreement, derived from any system of which the qualified project is a part of, from any other revenue producing facility under the ownership or control of the qualified borrower including, without limitation, proceeds of grants, gifts, appropriations, including the proceeds of financing made by the department, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation, and proceeds from the sale or other disposition of property and from any other special source as may be provided by the qualified borrower.
           (8)      'Qualified borrower' means any government unit, public or private nonprofit entity approved by the department that is authorized to construct, operate, or own a qualified project and receives financing assistance pursuant to this section.
           (9)      'Qualified project' means an eligible project that has been selected by the department to receive financing assistance pursuant to this section.
           (10)      'Revenues' means any receipts, fees, income, or other payments received or to be received by the department, expressly for the fund including, without limitation, receipts and other payments deposited for the fund and investment earnings on any monies and accounts established for the fund.
     (B)      The department shall provide the required staff and may add additional staff or contract for services, if necessary, to administer the fund in accordance with this section.  The compensation, costs, and expenses incurred incident to administering the fund may be paid from revenues.  If the department requests, the State Budget and Control Board may provide legal, technical, planning, and other assistance through intergovernmental agreement.  Costs incurred by the board pursuant to such a request must be reimbursed to it by the department from revenues.
     (C)      In addition to the powers and authority granted in this chapter, the department has the powers and authority necessary to carry out the purposes of this section including, but not limited to:
           (1)      establish procedures and guidelines necessary for the administration of this section;
           (2)      offer any form of financing assistance that the department considers necessary to any qualified borrower for a qualified project;
           (3)      provide loans or other financing assistance to qualified borrowers to finance the eligible costs of qualified projects and to acquire, hold, and sell loans or other obligations at prices and in the manner the department determines advisable;
           (4)      provide qualified borrowers with other financing assistance necessary to defray eligible costs of a qualified project;
           (5)      enter into contracts, arrangements, and agreements with qualified borrowers, governmental units, or other otherwise eligible entities, and execute and deliver all financing agreements and other instruments necessary or convenient to the exercise of the powers granted in this chapter;
           (6)      enter into agreements with a department, agency or instrumentality of the United States or of this State or another state for the purpose of planning and providing for the financing of qualified projects;
           (7)      establish fiscal controls and accounting procedures to ensure proper accounting and reporting by qualified borrowers;
           (8)      acquire by purchase, lease, donation, or other lawful means and sell, convey, pledge, lease, exchange, transfer, and dispose of all or part of its properties and assets of every kind and character or any interest in it to further the public purpose of the fund, without further approval or authorization;
           (9)      procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public or private entity, including any department, agency, or instrumentality of the United States or this State, for the payment of any debt issued by a qualified borrower or other entity receiving assistance pursuant to this section, including the power to pay premiums or fees on insurance, guarantees, letters of credit, and other forms of collateral or security or credit support, without further approval or authorization;
           (10)      collect fees and charges in connection with financing assistance and expend such funds to effectuate the purposes of this section;
           (11)      apply for, receive and accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this section;
           (12)      do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter.
     (D)      The department shall establish accounts and subaccounts within the state accounts and any federal accounts to receive and disburse funds to effectuate the purposes of this section.  Earnings on the balances in these state accounts must be expended to effectuate the purposes of this section.  Earnings on balances in the federal accounts must be credited and invested according to federal law.  All accounts must be held in trust by the State Treasurer and the unexpended funds in these accounts carry forward from year to year.  All earnings on state accounts must be retained in those accounts and used for the same purposes.
     (E)      The department shall determine which projects are eligible projects and then select from among the eligible projects those qualified to receive financing assistance under this section.  Priority in funding must be given to projects located in underdeveloped areas of the State.
     (F)      In selecting qualified projects, the department shall consider the projected feasibility of the project and the amount of financial risk.  The department also may consider, but is not limited to, the following criteria in making its determination that an eligible project is a qualified project:
           (1)      local support of the project, expressed by resolutions by the governing bodies in the areas in which the project will be located;
           (2)      economic benefit of the project;
           (3)      readiness of the project to proceed;
           (4)      ability of the applicant to repay financial assistance obtained;
           (5)      financial or in-kind contributions to the project;
           (6)      development status of the county in which the project is located; and
           (7)      whether the governing bodies of the county or the incorporated municipality in which the project is located provide to the department a resolution that makes a finding that the project is essential to economic development in the political subdivisions, or the department receives a resolution or certificate from the Coordinating Council for Economic Development that the project is essential to economic development in this State, or both, at the option of the department.
     (G)      Qualified borrowers may obtain financing assistance pursuant to this section through financing or grant agreements.  Qualified borrowers entering into financing or grant agreements or issuing debt obligations may perform any acts, take any action, adopt any proceedings, or make and carry out any contracts or agreements with the department as may be agreed to by the department and any qualified borrower and necessary for effectuating the purposes of this section.
     (H)      In addition to the authorizations contained in this section, all other statutes or provisions permitting government units to borrow money and issue obligations including, but not limited to, the Revenue Bond Act for Utilities and the Revenue Bond Refinancing Act of 1937, may be utilized by any government unit in obtaining financing assistance from the department pursuant to this section.  Notwithstanding the foregoing, obligations secured by ad valorem taxes may be issued by a government unit and purchased by the department or its agent without regard to any public bidding requirement.
     (I)      A qualified borrower may receive, apply, pledge, assign, and grant security interest in project revenues; and, in the case of a governmental unit, its project revenues, revenues derived from a special source or ad valorem taxes, to secure its obligations as provided in this section, and may fix, revise, charge, and collect fees, rates, rents, assessments, and other charges of general or special application for the operation or services of a qualified project, the system of which it is a part, and any other revenue producing facilities from which the qualified borrower derives project revenues, to meet its obligations under a financing agreement or to provide for the construction and improving of a qualified project.
     (J)      If a qualified borrower fails to collect and remit in full all amounts due under any related financing agreement, note, or other obligation, the department may, on or after the date these amounts are due, notify the State Treasurer who shall withhold all or a portion of the state funds and all funds administered by this State, its agencies, boards, and instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of the amount due; or in the case of a private entity, the department may pursue recovery pursuant to Chapter 56 of Title 12; or the department may pursue any other remedy provided by law.
     (K)      Nothing contained in this section mandates the withholding of funds allocated to a government unit or private entity which would violate contracts to which this State is a party, the requirements of federal law imposed on this State, or judgments of a court binding on this State.
     (L)      Notice, proceeding, or publication, except those required in this section, are not necessary to the performance of any act authorized in this section nor is any act of the department subject to any referendum.
     (M)      Following the close of each state fiscal year, the department shall submit an annual report of its activities pursuant to this section for the preceding year to the Governor and to the General Assembly.
     (N)      No funds under this section may be provided, promised, or allocated to any projects authorized hereunder before November 15, 2000.
     (O)      The department shall submit a quarterly report to the State Budget and Control Board of all projects obligated for funding pursuant to this section."

E.      Except where otherwise stated, this section takes effect upon approval by the Governor.

SECTION 70

DELETED

SECTION 71

DELETED

SECTION 72

DELETED

SECTION 73

TO AMEND SECTION 1-30-25, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF COMMERCE, SO AS TO PROVIDE THAT THE DEPARTMENT DEVELOP CRITERIA FOR ALLOCATING FUNDING THROUGH THE SOUTH CAROLINA FILM OFFICE.

     Section 1-30-25(D) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:

     "(D)      State Development Board, including the South Carolina Film Office, formerly provided for at Section 13-3-10, et seq., except that the department must make reasonable rules and promulgate reasonable regulations to ensure that funds made available to film projects through its Film Office are budgeted and spent so as to further the following objectives:
           (1)      stimulation of economic activity to develop the potentialities of the State;
           (2)      conservation, restoration, and development of the natural and physical, the human and social, and the economic and productive resources of the State;
           (3)      promotion of a system of transportation for the State, through development and expansion of the highway, railroad, port, waterway, and airport systems;
           (4)      promotion and correlation of state and local activity in planning public works projects;
           (5)      promotion of public interest in the development of the State through cooperation with public agencies, private, enterprises, and charitable and social institutions;
           (6)      encouragement of industrial development, private business, commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;
           (7)      assistance in the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;
           (8)      assistance in ensuring stability in employment, increasing the opportunities for employment of the citizens of the State, devising ways and means to raise the living standards of the people of the State; and
           (9)      enhancement of the general welfare of the people;"

SECTION 74

DELETED

SECTION 75

TO AMEND SECTION 50-11-310, AS AMENDED, OF THE 1976 CODE, RELATING TO OPEN SEASON FOR ANTLERED DEER, SO AS TO PROVIDE FOR HUNTING DEER ON SUNDAYS ON PRIVATE LAND IN GAME ZONE 4.

     Section 50-11-310 of the 1976 Code, as last amended by Act 57 of 1997, is further amended by adding:

     "(E)      Notwithstanding any other provision of law, it is not unlawful to hunt deer on Sunday on private land in Game Zone 4 during the prescribed season for hunting deer."

SECTION 76

TO AMEND THE 1976 CODE BY ADDING SECTION 54-3-260 SO AS TO REQUIRE APPROVAL OF THE GENERAL ASSEMBLY PRIOR TO THE CONSTRUCTION OF A TERMINAL OR RAILROAD ON DANIEL ISLAND BY THE STATE PORTS AUTHORITY.

Article 3, Chapter 3, Title 54 of the 1976 Code is amended by adding:

     "Section 54-3-260.      The authority must obtain the approval of the General Assembly prior to constructing a terminal or railroad on Daniel Island."

SECTION 77

DELETED

SECTION 78

DELETED

SECTION 79

DELETED

SECTION 80

TO AMEND SECTION 44-56-170, AS AMENDED, OF THE 1976 CODE, RELATING TO THE HAZARDOUS WASTE CONTINGENCY FUND, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH FUNDS FROM FEES COLLECTED FROM HAZARDOUS WASTE DISPOSAL ARE DISTRIBUTED AND TO REPEAL SUBSECTION C., SECTION 63, PART II, ACT 100 OF 1999.

A.      Section 44-56-170(F) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:

     "(F)(1)      There is imposed a fee of ten dollars a ton on the incineration of hazardous waste in this State whether the waste was generated within or outside of this State. Fees imposed by this subsection must be collected by the facility at which it is incinerated and remitted to the State Treasurer to be placed into a fund separate and distinct from the state general fund entitled 'Hazardous Waste Fund County Account'.
           (2)(a)      This fee must be credited to the benefit of the county where the incineration of the hazardous waste generating the fee occurred.  If the amount of funds credited to a particular county exceeds five hundred thousand dollars annually, the excess over five hundred thousand dollars must be credited to the general fund of the State.
                 (b)      Effective July 1, 2000, the provisions of subitem (a) are no longer effective and the fee must be allocated in the following manner:  fifty percent to the county where the incineration of the hazardous waste generating the fee occurred and fifty percent to the general fund of the State.  
           (3)      Funds in each county's account must be released by the State Treasurer upon the written request of a majority of the county's legislative delegation and used for infrastructure within the economically depressed area of that county.
           (4)(a)      For purposes of this subsection, `county legislative delegation' includes only those members who represent the economically depressed areas of the county.
                 (b)      For purposes of this subsection, `incineration' includes hazardous waste incinerators, boilers, and industrial furnaces.
                 (c)      For the purpose of this subsection `infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land which are considered necessary, suitable, or useful to an eligible project.  These improvements include, but are not limited to:
                       (1)(i)      improvements to both public water and sewer systems;
                       (2)(ii)      improvements to public electric, natural gas, and telecommunication systems; and
                       (3)(iii)      fixed transportation facilities including highway, road, rail, water, and air."

B.      For purposes of Section 44-56-170(F), the phrase 'economically depressed area of that county' means:
     (1)      within Orangeburg County, the entire area of the county;
     (2)      within Dorchester County, the area comprising School District 4; and
     (3)      for any other county, an area designated by the county governing body.

C.      Subsection C. of SECTION 63 of Part II, Act 100 of 1999 is repealed.

D.      This section takes effect July 1, 2000.

SECTION 81

TO AMEND THE 1976 CODE BY ADDING SECTION 54-7-110 SO AS TO PROVIDE THAT THE HUNLEY COMMISSION AND THE SOUTH CAROLINA EDUCATIONAL TELEVISION COMMISSION IN ANY FILM EITHER MAKES RELATING TO THE HUNLEY INCLUDING, BUT NOT LIMITED TO, THE RECOVERY OF THE HUNLEY WHICH IS FURNISHED TO ANOTHER PARTY FOR OTHER THAN A CONTRACTUAL FEE SHALL INSERT IN APPROPRIATE PLACES AT THE BOTTOM AND END OF THE FILM A SPECIFIED CAPTION.

The 1976 Code is amended by adding:

     "Section 54-7-110.      The Hunley Commission and the South Carolina Educational Television Commission on any film either makes relating to H. L. Hunley including, but not limited to, the recovery of the Hunley which is furnished to another party for other than a contractual fee shall insert in appropriate places at the bottom and end of the film a caption stating that the film taken by the Hunley Commission or the Educational Television Commission is 'Provided courtesy of the Hunley Commission or the South Carolina Educational Television Commission and any person interested in making a donation for the preservation and exhibition of the Hunley may send it to The Hunley Commission, Post Office Box 142, Columbia, South Carolina 29202'."

SECTION 82

TO AMEND THE 1976 CODE BY ADDING SECTION 37-2-307 SO AS TO REQUIRE MOTOR VEHICLE DEALERS CHARGING CLOSING FEES ON SALES CONTRACTS TO PAY A ONCE YEARLY REGISTRATION FEE TO THE DEPARTMENT OF CONSUMER AFFAIRS AND TO REQUIRE CLOSING COSTS TO BE DISCLOSED IN ADVERTISED CAR PRICES AND IN THE SALES CONTRACT AND TO BE DISPLAYED IN THE DEALERSHIP.

The 1976 Code is amended by adding:

     "Section 37-2-307.      Every motor vehicle dealer charging closing fees on a motor vehicle sales contract shall pay a one-time registration fee of ten dollars during each state fiscal year to the Department of Consumer Affairs.  The closing fee must be included in the advertised price of the motor vehicle, disclosed on the sales contract, and displayed in a conspicuous location in the motor vehicle dealership."

SECTION 83

TO AMEND SECTION 24-3-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISPOSITION OF WAGES OF A PRISONER ALLOWED TO WORK AT PAID EMPLOYMENT, SO AS TO PROVIDE THAT THE MONIES DEPOSITED WITH THE STATE TREASURER IN A SPECIAL ACCOUNT TO SUPPORT VICTIM ASSISTANCE PROGRAMS MUST BE DEPOSITED IN A SPECIAL ACCOUNT FOR THE USE OF THE STATE OFFICE OF VICTIM ASSISTANCE TO PROVIDE VICTIM COMPENSATION, PROGRAM DEVELOPMENT, TRAINING, AND ADMINISTRATIVE SUPPORT; TO AMEND SECTIONS 14-1-206, 14-1-207, AND 14-1-208, ALL AS AMENDED, ALL RELATING TO ASSESSMENTS IN GENERAL SESSIONS, FAMILY, MAGISTRATES, AND MUNICIPAL COURT, SO AS TO PROVIDE FOR ADDITIONAL INFORMATION TO BE PROVIDED FOR THE COUNTY OR MUNICIPALITY, AS APPLICABLE, IN A SUPPLEMENTARY SCHEDULE OF THE ANNUAL EXTERNAL AUDIT; AND TO AMEND SECTION 14-1-211, AS AMENDED, RELATING TO A SURCHARGE IN GENERAL SESSIONS COURT, SO AS TO PROVIDE FOR ADDITIONAL INFORMATION TO BE PROVIDED FOR THE COUNTY IN A SUPPLEMENTARY SCHEDULE BY THE ANNUAL EXTERNAL AUDIT.

A.      Section 24-3-40(A)(2) of the 1976 Code, as last amended by Act 68 of 1999, is further amended to read:

     "(2)      If restitution to a particular victim or victims has not been ordered by the court, or if court-ordered restitution to a particular victim or victims has been satisfied, then the twenty percent referred to in subsection (1) must be placed on deposit with the State Treasurer for credit to a special account to support victim assistance programs established pursuant to the Victims of Crime Act of 1984, Public Law 98-473, Title II, Chapter XIV, Section 1404, if the prisoner is engaged in work at paid employment in the community. If the prisoner is employed in a prison industry program, then the twenty percent referred to in subsection (1) must be applied to the South Carolina Victims Compensation Fund directed to the State Office of Victim Assistance for use in training, program development, victim compensation, and general administrative support pursuant to Section 16-3-1410."

B.      Section 14-1-206(E)(1) of the 1976 Code, as added by Act 105 of 1999, is further amended to read:

     "(1)      To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:
           (a)      all fines collected by the clerk of court for the court of general sessions;
           (b)      all assessments collected by the clerk of court for the court of general sessions;
           (c)      the amount of fines retained by the county treasurer;
           (d)      the amount of assessments retained by the county treasurer; and
           (e)      the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and
           (f)      the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

C.      Section 14-1-207(E)(1) of the 1976 Code, as added by Act 105 of 1999, is further amended to read:

     "(1)      To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:
           (a)      all fines collected by the magistrate's court;
           (b)      all assessments collected by the magistrate's court;
           (c)      the amount of fines retained by the county treasurer;
           (d)      the amount of assessments retained by the county treasurer; and
           (e)      the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and
           (f)      the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

D.      Section 14-1-208(E)(1) of the 1976 Code, as added by Act 105 of 1999, is further amended to read:

     "(1)      To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:
           (a)      all fines collected by the clerk of court for the municipal court;
           (b)      all assessments collected by the clerk of court for the municipal court;
           (c)      the amount of fines retained by the municipal treasurer;
           (d)      the amount of assessments retained by the municipal treasurer; and
           (e)      the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and
           (f)      the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

E.      Section 14-1-211(D)(1) of the 1976 Code, as added by Act 105 of 1999, is further amended to read:

     "(1)      The supplementary schedule must include the following elements:
           (a)      all surcharges collected by the clerk of court for the general sessions, magistrate's, or municipal court;
           (b)      the amount of surcharges retained by the city or county treasurer pursuant to this section; and
           (c)      the amount of funds allocated to victim services by fund source.; and
           (d)      how those funds were expended, and any carry forward balances."

SECTION 84

TO AMEND SECTION 12-43-220, AS AMENDED, OF THE 1976 CODE, RELATING TO THE CLASSIFICATION OF PROPERTY AND APPLICABLE ASSESSMENT RATIOS FOR PURPOSES OF PROPERTY TAX, SO AS TO PROVIDE THAT THE FIVE PERCENT ASSESSMENT RATIO APPLICABLE TO COMMERCIAL FISHING BOATS LICENSED BY THE DEPARTMENT OF NATURAL RESOURCES EXTENDS TO BOATS ON OR FROM WHICH COMMERCIAL FISHING EQUIPMENT LICENSED BY THAT DEPARTMENT IS USED.

A.      Section 12-43-220(f) of the 1976 Code is amended to read:

     "(f)      Except as specifically provided by law all other personal property shall must be taxed on an assessment of ten and one-half percent of fair market value of such the property except that commercial fishing boats shall must be taxed on an assessment of five percent of fair market value.  As used in this item 'commercial fishing boats' shall mean means boats used exclusively for commercial fishing, shrimping, or crabbing and (1) licensed by the Department of Natural Resources, or (2) on or from which is used commercial fishing equipment licensed by, the Department of Natural Resources which are used exclusively for commercial fishing, shrimping, or crabbing."

B.      This section applies for property tax years beginning after 1999.

SECTION 85

DELETED

SECTION 86

DELETED

SECTION 87

TO AMEND SECTION 51-17-140, AS AMENDED, OF THE 1976 CODE, RELATING TO MAXIMUM ACREAGE THAT MAY BE ACQUIRED UNDER THE PROVISIONS OF THE HERITAGE TRUST PROGRAM, SO AS TO RAISE THE LIMITATION FROM ONE HUNDRED THOUSAND ACRES TO ONE HUNDRED FIFTY THOUSAND ACRES AND TO REQUIRE ADVANCE APPROVAL OF ACQUISITIONS BY THE COUNTY LEGISLATIVE DELEGATION.

Section 51-17-140 of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:

     "Section 51-17-140.      Not more than one hundred fifty thousand acres total of real property shall be acquired in fee under the provisions of this chapter.  Moreover, No acquisition shall may be made under this chapter in any county without written approval of a majority of the county delegation in the county where the property is located Heritage Trust properties are to be acquired."


SECTION 88

TO AMEND SECTION 12-43-220 OF THE 1976 CODE, RELATING TO UNIFORM ASSESSMENT RATIOS, SO AS TO PROVIDE FOR THE ASSESSMENT OF CERTAIN COMMERCIAL TUGBOATS AT FIVE PERCENT OF FAIR MARKET VALUE.

A.      Section 12-43-220(f) of the 1976 Code is amended to read:

     "(f)      Except as specifically provided by law all other personal property shall be taxed on an assessment of ten and one-half percent of fair market value of such property except that commercial fishing boats and commercial tugboats shall be taxed on an assessment of five percent of fair market value.  As used in this item 'commercial fishing boats' shall mean boats licensed by the Department of Natural Resources which are used exclusively for commercial fishing, shrimping, or crabbing.  As used in this item, 'commercial tugboats' shall mean boats used exclusively for harbor and ocean towing, documented with the U.S. Coast Guard, constructed of steel, and being at least eighty feet in length and having a gross tonnage of at least one hundred tons."

B.      This section is effective for tax year commencing January 1, 1999.

SECTION 89

TO AMEND SECTION 56-3-840, AS AMENDED, OF THE 1976 CODE, RELATING TO DELINQUENT REGISTRATION, SO AS TO UPDATE THE REFERENCE DATE FOR THE BUILDING FUND INCLUDING THE REVENUES AND TO PROVIDE THAT THE BUDGET AND CONTROL BOARD SHALL APPROVE CERTAIN BUILDING PROJECTS.

A.      The last paragraph in Section 56-3-840 of the 1976 Code, as added by Section 88, Part II, Act 100 of 1999, is further amended to read:

     "All monies collected pursuant to this section, not to exceed 2.7 million dollars or the actual revenues collected in fiscal year 1998-99 1999-2000, whichever is less, must be annually deposited to a separate account and held in reserve for the department. Notwithstanding any other provision of law, these monies must be deposited to the credit of the department into a special fund in the office of the State Treasurer called designated as the 'Department of Public Safety Building Fund'. The department must use these monies and other unobligated monies for the purpose of issuing revenue bonds or for entering into a lease purchase agreement for a headquarters building facility, including the renovation of existing facilities. All monies credited to the special account fund that exceed the funds necessary for the purposes authorized in this section must be used for other capital projects throughout the state. The department is authorized to initiate and direct a capital project to purchase or construct a new headquarters facility. Projects funded under this section other than for the construction or purchase of a new headquarters building facility, including but not limited to, the expansion or renovation to the of an existing facility, must be approved by a joint resolution provided that if the department employs a lease purchase agreement to build or purchase a new headquarters facility, the lease purchase agreement must be approved by the Budget and Control Board. The cost of a headquarters building facility must not exceed thirty million dollars unless a parking facility or garage is required."

B.      This section takes effect July 1, 2001.

SECTION 90

DELETED

SECTION 91

DELETED

SECTION 92

TO AMEND SECTION 16-11-700, AS AMENDED, OF THE 1976 CODE, RELATING TO THE OFFENSE OF DUMPING LITTER OR OTHER SOLID WASTE ON PUBLIC OR PRIVATE PROPERTY, SO AS TO INCREASE THE FINES FOR VIOLATIONS, REQUIRE COMMUNITY SERVICE FOR A FIRST CONVICTION, AND INCREASE THE AMOUNT OF COMMUNITY SERVICE REQUIRED FOR SECOND AND SUBSEQUENT CONVICTIONS.

A.      Section 16-11-700, as last amended by Act 100 of 1999, is further amended to read:

     "Section 16-11-700.      (A)      No person may dump, throw, drop, deposit, discard, or otherwise dispose of litter or other solid waste, as defined by Section 44-96-40(46), upon any public or private property or waters in the State whether from a vehicle or otherwise, including, but not limited to, a public highway, public park, beach, campground, forest land, recreational area, trailer park, highway, road, street, or alley except:
           (1)      when the property is designated by the State for the disposal of litter and other solid waste and the person is authorized to use the property for that purpose;
           (2)      into a litter receptacle in a manner that the litter is prevented from being carried away or deposited by the elements upon a part of the private or public property or waters.
     (B)      Responsibility for the removal of litter from property or receptacles is upon the person convicted under this section of littering the property or receptacles.  However, if there is no conviction, the responsibility is upon the owner of the property or upon the owner of the property where the receptacle is located.
     (C)(1)      A person who violates the provisions of this section in an amount less than fifteen pounds in weight or twenty-seven cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned for not more than thirty days for each offense for a first or second conviction, or fined five hundred dollars or imprisoned for not more than thirty days for a third or subsequent conviction.  In addition to a the fine or term of imprisonment and for each offense under the provisions of this item, the court shall must also impose a minimum of five fifteen hours of litter-gathering labor for a first conviction, thirty hours of litter-gathering labor for a second conviction, and 100 hours of litter-gathering labor for a third or subsequent conviction, or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court.  One hundred dollars of the fine imposed by this item must be deposited in the state's general fund and used by the Office of the Governor to fund a litter control campaign.
           (2)      The fine for a deposit of a collection of litter or garbage in an area or facility not intended for public deposit of litter or garbage is one thousand dollars. The provisions of this item apply to a deposit of litter or garbage, as defined in Section 44-67-30(4), in an area or facility not intended for public deposit of litter or garbage, but this does not prohibit a private property owner from depositing litter or garbage as a property enhancement if the depositing does not violate applicable local or state health and safety regulations. In addition to a fine and for each offense under the provisions of this item the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court.  Eight hundred dollars of the fine imposed by this item must be deposited in the states state's general fund and used by the Office of the Governor to fund a litter control campaign.
           (3)      The court, in lieu of payment of the monetary fine imposed for a violation of this section, may direct the substitution of additional litter-gathering labor or other form of public service as it may order because of physical or other incapacities, under the supervision of the court, not to exceed one hour for each five dollars of fine imposed.
           (4)      For a second and subsequent convictions under the provisions of items (1) or (2) of this subsection, a minimum of twenty hours of community service must be imposed in addition to a fine.
           (5)      In addition to any other punishment authorized by this section, in the discretion of the court in which conviction is obtained, the person may be directed by the judge to pick up and remove from any public place or any private property, with prior permission of the legal owner upon which it is established by competent evidence that the person has deposited litter, all litter deposited on the place or property by anyone before the date of execution of sentence.
           (6)(5)      Magistrates and municipal courts have jurisdiction to try violations of subsections (A), (B), (C), and (D) of this section.
     (D)      Any person who violates the provisions of this section in an amount exceeding fifteen pounds in weight or twenty-seven cubic feet in volume, but not exceeding five hundred pounds or one hundred cubic feet, is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than five hundred dollars or imprisoned for not more than ninety days.  In addition, the court shall require the violator to pick up litter or perform other community service commensurate with the offense committed.
     (E)(1)      Any person who violates the provisions of this section in an amount exceeding five hundred pounds in weight or one hundred cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than five hundred dollars nor more than one thousand dollars, or imprisoned not more than one year, or both.  In addition, the court may order the violator to:
                 (a)      remove or render harmless the litter that he dumped in violation of this subsection;
                 (b)      repair or restore property damaged by, or pay damages for damage arising out of, his dumping litter in violation of this subsection; or
                 (c)      perform community public service relating to the removal of litter dumped in violation of this subsection or relating to the restoration of an area polluted by litter dumped in violation of this subsection.
           (2)      A court may enjoin a violation of this subsection.
           (3)      A motor vehicle, vessel, aircraft, container, crane, winch, or machine involved in the disposal of more than five hundred pounds in weight or more than one hundred cubic feet in volume of litter in violation of this subsection is declared contraband and is subject to seizure and summary forfeiture to the State.
           (4)      If a person sustains damages arising out of a violation of this subsection that is punishable as a felony, a court, in a civil action for such damages, shall order the person to pay the injured party threefold the actual damages or two hundred dollars, whichever amount is greater.  In addition, the court shall order the person to pay the injured party's court costs and attorney's fees.
           (5)      No part of a fine imposed pursuant to this section may be suspended.
     (F)      For purposes of the offenses established by this section, litter includes cigarettes and cigarette filters."

B.      This section takes effect July 1, 2000, and applies for violations occurring on and after that date.

SECTION 93

DELETED

SECTION 94

TO AMEND SECTION 22-8-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE SALARY OF MAGISTRATES AND THE NUMBER OF MAGISTRATES AUTHORIZED IN A COUNTY, SO AS TO ALLOW A MAGISTRATE TO COUNT PRIOR SERVICE AS A MAGISTRATE FOR PURPOSES OF SALARY PAID TO A MAGISTRATE IN THE MAGISTRATE'S INITIAL TERM.

Section 22-8-40 of the 1976 Code, as last amended by an act of 2000 bearing ratification number 225, is further amended by adding an appropriately lettered subsection at the end to read:

     "( )      For purposes of the salary phase-in provided in subsection (B)(1) of this section, a magistrate with prior service as a magistrate who after a break in service is again appointed magistrate, is allowed credit for the prior service."

SECTION 95

DELETED

SECTION 96

DELETED

SECTION 97

TO AMEND THE 1976 CODE BY ADDING SECTION 10-1-205 SO AS TO REQUIRE COMPUTERS IN PUBLIC LIBRARIES, PUBLIC SCHOOL LIBRARIES, AND LIBRARIES IN PUBLIC INSTITUTIONS OF HIGHER LEARNING WHICH CAN ACCESS THE INTERNET AND ARE AVAILABLE FOR USE BY THE PUBLIC OR STUDENTS TO HAVE ITS COMPUTER-USE POLICIES DETERMINED BY LIBRARY GOVERNING BOARD WHICH USE POLICIES MUST BE DESIGNED TO REDUCE THE ABILITY OF A USER TO ACCESS WEB SITES DISPLAYING OBSCENE OR PORNOGRAPHIC MATERIAL; AND TO AMEND SECTION 15-78-60, AS AMENDED, RELATING TO EXCEPTIONS TO THE WAIVER OF IMMUNITY UNDER THE TORT CLAIMS ACT, SO AS TO INCLUDE THE FAILURE OF A LIBRARY'S GOVERNING BOARD TO ADOPT THE POLICIES REQUIRED ABOVE.

A.      The 1976 Code is amended by adding:

     "Section 10-1-205.      A computer which:
     (1)      is located in a lending library supported by public funds, public school library or media arts center, or in the library of a public institution of higher learning as defined in Section 59-103-5;
     (2)      can access the Internet; and
     (3)      is available for use by the public or students, or both;
     shall have its use policies determined by the library's or center's governing boards, as appropriate.  The governing boards must adopt policies intended to reduce the ability of the user to access web sites displaying information or material in violation of Article 3 of Chapter 15 of Title 16."

B.      Section 15-78-60 of the 1976 Code, as last amended by Act 77 of 1999, is further amended by adding a new item at the end:

     "(35)      the failure of a library's or media arts center's governing board to adopt policies as provided in Section 10-1-205."

C.      This section takes effect July 1, 2000.

SECTION 98

TO AMEND SECTION 56-3-910, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISPOSITION OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES, SO AS TO PROVIDE FOR THE CREDITING OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES AND PENALTIES NOT ALREADY CREDITED TO THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK TO THE STATE HIGHWAY FUND BEGINNING JULY 1, 2000.

A.      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 which must be placed in the state highway account of the South Carolina Transportation Infrastructure Bank and except for those fees and penalties which must be credited to a different account as otherwise provided for by law.
     (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. Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001."

B.      This section takes effect July 1, 2000.

SECTION 99

TO AMEND THE 1976 CODE BY ADDING ARTICLE 5 IN CHAPTER 10 OF TITLE 4, RELATING TO LOCAL SALES AND USE TAXES, ENACTING THE PERSONAL PROPERTY TAX EXEMPTION SALES TAX ACT, SO AS TO AUTHORIZE THE IMPOSITION BY REFERENDUM APPROVAL OF A SALES AND USE TAX IN A COUNTY IN INCREMENTS OF ONE-TENTH OF ONE PERCENT, NOT TO EXCEED TWO PERCENT, TO PROVIDE FOR THOSE CIRCUMSTANCES RESULTING IN RESCINDING THE TAX, AND TO REQUIRE THE TAX REVENUE TO BE USED TO REPLACE PROPERTY TAX REVENUES NOT COLLECTED ON PRIVATE PASSENGER MOTOR VEHICLES, MOTORCYCLES, GENERAL AVIATION AIRCRAFT, BOATS, AND BOAT MOTORS WHICH ARE EXEMPT FROM PROPERTY TAXES LEVIED IN THE COUNTY IF A MAJORITY IN THE REFERENDUM FAVOR THE SALES TAX; AND TO AMEND SECTION 11-11-150, RELATING TO THE REDUCTIONS IN THE REVENUE ESTIMATE FOR AMOUNTS CREDITED TO THE TRUST FUND FOR TAX RELIEF, SO AS TO PROVIDE FOR THE REIMBURSEMENTS REQUIRED PURSUANT TO THIS ACT.

A.      Chapter 10, Title 4 of the 1976 Code is amended by adding:

"Article 5

Personal Property Tax

Exemption Sales Tax Act

     Section 4-10-510.      This article may be cited as the 'Personal Property Tax Exemption Sales Tax Act'.

     Section 4-10-520.      This article provides the only method in which the governing body of a county by ordinance may exempt private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors from property taxes levied in the county as provided in Section 3, Article X of the Constitution of this State.

     Section 4-10-530.      As used in this article, a county has the meaning provided for 'county areas' in Section 4-10-10(1).

     Section 4-10-540.      (A)      Subject to the requirements of this article, the county council by ordinance may impose a sales and use tax in increments of one-tenth of one percent, not to exceed two percent, subject to referendum approval.  The rate of the tax must be set at an amount expressed in tenths of one percent estimated to be sufficient to produce revenues that do not exceed those necessary to replace private passenger motor vehicle, motorcycle, general aviation aircraft, boat, and boat motor property tax revenue in the county in the most recently completed fiscal year, but in no case more than two percent.  The county council must obtain from the Board of Economic Advisors the board's certified estimate of the rate of sales and use tax necessary in the county to equal property tax revenues derived from private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors in the latest completed fiscal year.  If this rate exceeds two percent, the maximum rate the board may certify is two percent.  This certified rate is the rate of tax that must appear in the referendum question.  If the revenue of a two percent tax does not at least equal the revenue not collected, then for the first year of implementation, the shortfall must be made up by a distribution to the county from the Trust Fund for Tax Relief, and this distribution is considered additional sales tax revenue pursuant to this article.  Thereafter, this distribution must be adjusted by an amount equal to any increase in the consumer price index in the most recently completed calendar year, but in no case may this distribution result in a reimbursement to a county that exceeds the personal property tax revenue not collected because of the exemption allowed by this article.
     (B)      If the property tax assessment ratio applicable to private passenger motor vehicles and motorcycles is reduced, then for a county where the tax allowed by this article is imposed, the board shall certify a new tax rate applying the reduced assessment ratio to the assessed value of vehicles in the county in the most recently completed fiscal year, using the millage applicable for that fiscal year, and calculate a tax rate sufficient to produce that revenue in a fiscal year plus the revenue not collected because of the exemption for general aviation aircraft, boats, and boat motors from the original calculation, not to exceed two percent.  This new rate applies effective beginning with the month the assessment ratio changes and continues to apply while that assessment ratio applies or until the tax is rescinded.

     Section 4-10-550.      (A)      The sales and use tax authorized by this article is imposed by an enacting ordinance of the county council.
     (B)      Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the sales and use tax.  A referendum for this purpose must be held at the time of the general election.  Two weeks before the referendum the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot.  This notice is in lieu of any other notice otherwise required by law.
     (C)      The referendum question to be on the ballot must read substantially as follows:

     'Must a (rate) sales and use tax be imposed in   (county)   to replace property tax revenues not collected because of a one hundred percent property tax exemption for private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors otherwise taxable in the county?

Yes      [ ]

No      [ ]'

     (D)      All qualified electors desiring to vote in favor of imposing the tax shall vote 'Yes' and all qualified electors opposed to imposing the tax shall vote 'No'.  If a majority of the votes cast are in favor of imposing the tax, then the tax is imposed as provided in this article and beginning for motor vehicle tax years beginning on and after that date, and all other property tax years beginning after the year in which the referendum is held, all private passenger motor vehicles as defined in Section 56-3-630, motorcycles, general aviation aircraft, boats, and boat motors otherwise taxable in the county are exempt from property taxes levied in the county.  The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county governing body and to the Department of Revenue.
     (E)      Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof.  The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.

     Section 4-10-560.      If the sales and use tax is approved in the referendum, the tax is imposed on the first of July following the date of the referendum.  If the certification is not timely made to the Department of Revenue, the imposition and property tax exemption is postponed for twelve months.

     Section 4-10-570.      (A)      Upon petition of at least fifteen percent of the qualified electors of a county presented to the county council of the county which has implemented the sales and use tax authorized by this article requesting that this tax be rescinded, the council shall direct the county election commission to conduct a referendum on the question of rescinding the sales and use tax.  A referendum for this purpose must be held on the Tuesday following the first Monday in November following verification of the petition.  Two weeks before the referendum the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot.  This notice is in lieu of any other notice otherwise required by law.
     (B)      The referendum question to be on the ballot must read substantially as follows:
     'Must the  (rate)   sales and use tax imposed in  (county)   be rescinded with the revenue not collected replaced by extending the property tax to private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors previously not subject to property tax in this county?

Yes      [ ]

No      [ ]'

     (C)(1)      All qualified electors desiring to vote in favor of rescinding the tax shall vote 'Yes' and all qualified electors opposed to rescinding the tax shall vote 'No'.  If a majority of the votes cast are in favor of rescinding the tax, then the tax is rescinded effective July first following the referendum and property taxes apply to all private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors taxable in the county for motor vehicle tax years beginning after June 30 following the referendum and other property tax years beginning after the year in which the referendum is held.  The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than December thirty-first to the county council.  If a majority 'Yes' vote is certified, it must be certified to the Department of Revenue by the same date.
           (2)      Upon receipt of the return of the referendum, the county council shall declare the results thereof by resolution.  The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted.
     (D)      A referendum for rescission of this tax may not be held earlier than two years after the tax has been imposed in the county.  If a majority of the qualified electors voting in the rescission referendum vote against rescinding the tax, no further rescission referendums may be held for a period of two years.  If a majority of the qualified electors vote in favor of rescinding the tax, the tax may not be reimposed in the county for a period of two years.  The petition requesting rescission must be presented to the county governing body at least one hundred twenty days before the Tuesday following the first Monday of November of that year or the referendum must be held on the Tuesday following the first Monday of November of the following year.

     Section 4-10-580.      (A)      The tax levied pursuant to this article must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected.  The department may prescribe amounts that may be added to the sales price because of the tax.
     (B)      The tax authorized by this article is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable area that is subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12.  The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this article.  The tax imposed by this article also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
     (C)      Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall identify the county in which the personal property purchased at retail is stored, used, or consumed in this State.
     (D)      Utilities shall report sales in the county in which the consumption of the tangible personal property occurs.
     (E) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county shall report separately in his sales tax return the total gross proceeds from business done in each county.
     (F) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this article in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the sales and use tax provided in this article if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition date of the sales and use tax provided for in this article.
     (G)      Notwithstanding the imposition date of the sales and use tax authorized pursuant to this chapter, with respect to services that are billed regularly on a monthly basis, the sales and use tax authorized pursuant to this article is imposed beginning on the first day of the billing period beginning on or after the imposition date.

     Section 4-10-590.      (A)      The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State.  After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer of the county in which the tax is imposed.  The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations.
     (B)      Revenues of the tax must be distributed by the county treasurer to the general funds of property taxing entities in the county in the proportion that each such entity collects of all property taxes levied in the county.

     Section 4-10-600.      The Board of Economic Advisors shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues.  The information that must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers.  Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240.  A person violating this section is subject to the penalties provided in Section 12-54-240."

B.      Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, is amended to read:

     "(A)      In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:
           (1)      Section 12-37-251 for the residential property tax exemption;
           (2)      Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;
           (3)      Section 12-37-935(B) for manufacturer's additional depreciation; and
           (4)      Section 12-37-450 for the inventory tax exemption; and
           (5)      Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors."

C.      This section takes effect upon ratification of an amendment to Section 3, Article X of the Constitution of this State authorizing the governing body of a county by ordinance to exempt private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors from property tax levied in the county pursuant to a referendum held in the county.


SECTION 100

TO AMEND SECTION 11-35-1510, AS AMENDED, OF THE 1976 CODE, RELATING TO METHODS OF SOURCE SELECTION PURSUANT TO THE CONSOLIDATED PROCUREMENT CODE, SO AS TO ADD COMPETITIVE ON-LINE BIDDING TO THE METHODS OF SOURCE SELECTION PERMITTED IN ADDITION TO COMPETITIVE SEALED BIDDING; AND TO AMEND ARTICLE 5, CHAPTER 35, TITLE 11, RELATING TO SOURCE SELECTION AND CONTRACT FORMATION PURSUANT TO THE CONSOLIDATED PROCUREMENT CODE, BY ADDING SECTION 11-35-1529, SO AS TO PROVIDE FOR COMPETITIVE ON-LINE BIDDING IN ADDITION TO OTHER METHODS OF SOURCE SELECTION PERMITTED IN ADDITION TO COMPETITIVE SEALED BIDDING PURSUANT TO THE CONSOLIDATED PROCUREMENT CODE.

A.      Section 11-35-1510 of the 1976 Code, as last amended by Act 153 of 1997, is amended by adding a new item at the end to read:

     "(16) Section 11-35-1529 (Competitive On-line Bidding)."

B.      Article 5, Chapter 35, Title 11 of the 1976 Code is amended by adding:

     "Section 11-35-1529.      (1)      Conditions for Use. When a purchasing agency determines that on-line bidding is more advantageous than other procurement methods provided by this code, a contract may be entered into by competitive on-line bidding, subject to the provisions of Section 11-35-1520 and the ensuing regulations, unless otherwise provided in this section.
     (2)      Bidding Process. The solicitation must designate both an Opening Date and Time and a Closing Date and Time. The Closing Date and Time need not be a fixed point in time, but may remain dependant on a variable specified in the solicitation. At the Opening Date and Time, the State must begin accepting real-time electronic bids. The solicitation must remain open until the Closing Date and Time. The State may require bidders to register before the Opening Date and Time and, as a part of that registration, to agree to any terms, conditions, or other requirements of the solicitation.  Following receipt of the first bid after the Opening Date and Time, the lowest bid price must be posted electronically to the Internet and updated on a real-time basis.  At any time before the Closing Date and Time, a bidder may lower the price of its bid, except that after Opening Date and Time, a bidder may not lower its price unless that price is below the then lowest bid.  Bid prices may not be increased after Opening Date and Time.  Except for bid prices, bids may be modified only as otherwise allowed by this code.  A bid may be withdrawn only in compliance with Section 11-35-1520.  If a bid is withdrawn, a later bid submitted by the same bidder may not be for a higher price.  If the lowest responsive bid is withdrawn after the Closing Date and Time, the State may cancel the solicitation in accordance with this code or reopen electronic bidding to all pre-existing bidders by giving notice to all pre-existing bidders of both the new Opening Date and Time and the new Closing Date and Time.  Notice that electronic bidding will be reopened must be given as specified in the solicitation.
     (3)      Receipt and Safeguarding of Bids. Other than price, any information provided to the State by a bidder must be safeguarded as required by Section 11-35-1520(4).
     (4)      Provisions Not to Apply. Section 11-35-1524 and paragraph
     (5)      (Bid Opening) of Section 11-35-1520 do not apply to solicitations issued pursuant to this section."

END OF PART II


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