South Carolina General Assembly
115th Session, 2003-2004
Journal of the Senate


Printed Page 2476 . . . . . Wednesday, May 14, 2003

Wednesday, May 14, 2003
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear some words from Daniel, Chapter 2:21:

"Blessed be the name of God from age to age, for wisdom and power are His. He changes times and seasons, deposes kings and sets up kings; He gives wisdom to the wise and knowledge to those who have understanding. He reveals deep and hidden things."
Let us pray.

Father, by Your grace You have called to Heaven, at age 31, Paula Moore White, niece of Senator Tom Moore. We pray for Your blessing upon her family, now, and in the years to come.

We thank You for the words of Daniel, not that You give wisdom to fools, but You give wisdom and knowledge to those who have understanding. Lord, our needs and dilemmas in both State and nation qualify us for making our fervent prayer: Lord, give us wisdom and knowledge to get us out of our social, economic and political quagmires.

Daniel also said You reveal deep and hidden things; LORD, HEAR OUR PRAYER.
AMEN!

Point of Quorum

At 10:36 A.M., Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator LEATHERMAN moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes

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Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Patterson                 Peeler
Ravenel                   Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

Total--43

A quorum being present, the Senate resumed.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

Doctor of the Day

Senator MOORE introduced Dr. Benjamin E. Nicholson of Edgefield, S.C., Doctor of the Day.

Leave of Absence

At 4:30 P.M., Senator FORD requested a leave of absence from 5:00 - 7:00 P.M. tonight.

RECALLED AND ADOPTED

H. 4026 (Word version) -- Reps. W.D. Smith, Delleney and F.N. Smith: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 28, 2003, AS THE TIME TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE COURT OF APPEALS, SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2007; AND TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE FAMILY COURT FOR THE THIRD JUDICIAL CIRCUIT, SEAT 2, WHOSE TERM EXPIRES JUNE 30, 2007.

Senator RITCHIE asked unanimous consent to make a motion to recall the Resolution from the Committee on Judiciary.

There was no objection.


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Senator RITCHIE asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Resolution, the question being the adoption of the Resolution.

On motion of Senator RITCHIE, with unanimous consent, the Concurrent Resolution was adopted and ordered returned to the House.

RECALLED

H. 3990 (Word version) -- Reps. Limehouse, Hagood, Breeland, Ceips, Hamilton, Harrell, Mack and Scarborough: A BILL TO AMEND ARTICLE 62, CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ARTIFICIAL REEF SPECIAL LICENSE PLATE, SO AS TO RENAME IT THE 'SALTWATER FISHING' SPECIAL LICENSE PLATE, AND PROVIDE THAT THE PORTION OF THE PROCEEDS COLLECTED FROM THE ISSUANCE OF THIS SPECIAL LICENSE PLATE THAT WAS USED TO SUPPORT ARTIFICIAL REEF DEVELOPMENT, MAINTENANCE, AND MANAGEMENT MUST BE USED TO MANAGE AND CONSERVE THE MARINE RESOURCES OF THIS STATE.

Senator RICHARDSON asked unanimous consent to make a motion to recall the Bill from the Committee on Transportation on order the Bill placed on the Calendar for consideration tomorrow.

There was no objection.

The Bill was recalled from committee.

RECALLED

H. 3926 (Word version) -- Reps. Limehouse, Howard, Sandifer, Koon, Harrell, Scarborough, J.E. Smith, Govan, Townsend, J.M. Neal, Cato, Rhoad, E.H. Pitts, Altman, Battle, Bingham, Bowers, Breeland, Chellis, Clark, Clemmons, Dantzler, Edge, Emory, Freeman, Gourdine, Hamilton, Harrison, Haskins, Herbkersman, J. Hines, Jennings, Leach, Littlejohn, Mahaffey, McLeod, Merrill, Miller, Moody-Lawrence, Owens, Parks, M.A. Pitts, Rice, Richardson, Rivers, Rutherford, Simrill, Skelton, D.C. Smith, J.R. Smith, W.D. Smith, Snow, Stewart, Talley, Toole, Tripp, Umphlett, Vaughn, Walker, Whitmire, Wilkins, Bales and Bailey: A BILL TO AMEND SECTION 59-149-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO


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DURATION OF LIFE SCHOLARSHIPS, SO AS TO PROVIDE THAT A STUDENT RECEIVING A LIFE SCHOLARSHIP ON AND AFTER SEPTEMBER 11, 2001, WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVES AND WHO IS CALLED TO ACTIVE DUTY AFTER THIS DATE IN CONNECTION WITH THE CONFLICT IN IRAQ OR THE WAR ON TERRORISM SHALL HAVE ADDITIONAL SEMESTERS TO COMPLETE HIS ELIGIBILITY EQUAL TO THE SEMESTER HE WAS ACTIVATED PLUS ANY ADDITIONAL SEMESTERS OR PORTIONS OF SEMESTERS MISSED AS A RESULT OF THE ACTIVATION.

Senator HAYES asked unanimous consent to make a motion to recall the Bill from the Committee on Education and order the Bill placed on the Calendar for consideration tomorrow.

There was no objection.

The Bill was recalled from committee.

RECALLED

H. 3914 (Word version) -- Reps. Vaughn, Allen, Battle, Branham, Cato, Clyburn, Cooper, Gilham, Hamilton, Haskins, Herbkersman, J. Hines, Keegan, Leach, Littlejohn, Loftis, Mahaffey, Moody-Lawrence, Owens, Rice, Richardson, Sinclair, F.N. Smith, J.R. Smith, Taylor, Tripp, Wilkins and Young: A CONCURRENT RESOLUTION TO SUPPORT ACTIVITIES OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL IN THE ESTABLISHMENT AND IMPLEMENTATION OF THE STATE'S EARLY ACTION APPROACH FOR COMPLYING WITH THE NEW OZONE STANDARD MANDATED BY THE FEDERAL GOVERNMENT THROUGH THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY; TO ESTABLISH DATES AND MILESTONES FOR PLAN IMPLEMENTATION; AND TO PROVIDE FOR THE ESTABLISHMENT OF AN INTERGOVERNMENTAL WORKGROUP FOR THE PURPOSE OF PROMOTING BEHAVIORS AND POLICIES TO REDUCE AIR POLLUTION THROUGHOUT THE STATE OF SOUTH CAROLINA.

Senator PEELER asked unanimous consent to make a motion to recall the Resolution from the Committee on Medical Affairs and order the Resolution placed on the Calendar for consideration tomorrow.

There was no objection.

The Bill was recalled from committee.


Printed Page 2480 . . . . . Wednesday, May 14, 2003

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 698 (Word version) -- Senator Malloy: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE LOCATED AT EXIT 131 ALONG INTERSTATE HIGHWAY 20 IN DARLINGTON COUNTY THE "LAURIE COKE LAWSON INTERCHANGE" AND TO INSTALL APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE CONTAINING THE WORDS "LAURIE COKE LAWSON INTERCHANGE".
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On motion of Senator MALLOY, with unanimous consent, the Concurrent Resolution was introduced and ordered placed on the Calendar without reference.

S. 699 (Word version) -- Senator Alexander: A BILL TO AMEND SECTION 12-37-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THOSE MOTOR HOMES WHICH QUALIFY AS A PRIMARY OR SECONDARY RESIDENCE FOR PURPOSES OF PROPERTY TAX, SO AS TO INCLUDE TRAILERS USED FOR CAMPING AND RECREATIONAL TRAVEL PULLED BY A MOTOR VEHICLE.
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Read the first time and referred to the Committee on Finance.

S. 700 (Word version) -- Senator Moore: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA SENATE UPON LEARNING OF THE DEATH OF MRS. MURREL WEEKS PATTERSON OF WARRENVILLE, SOUTH CAROLINA, IN AIKEN COUNTY AND TO EXTEND DEEPEST SYMPATHY TO HER FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.

S. 701 (Word version) -- Senator Moore: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA SENATE UPON LEARNING OF THE DEATH OF MR. GERALD BOYD OF CLEARWATER, SOUTH


Printed Page 2481 . . . . . Wednesday, May 14, 2003

CAROLINA, IN AIKEN COUNTY AND TO EXTEND DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.

H. 4173 (Word version) -- Rep. Coleman: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE PORTION OF UNITED STATES HIGHWAY 321 IN FAIRFIELD COUNTY THAT BEGINS AT THE INTERSECTION OF UNITED STATES HIGHWAY 321 BUSINESS AND UNITED STATES HIGHWAY 321 BY-PASS ON THE NORTH SIDE OF THE TOWN OF WINNSBORO AND ENDS AT THE FAIRFIELD/CHESTER COUNTY LINE WEBSTER ANDERSON UNITED STATES CONGRESSIONAL MEDAL OF HONOR RECIPIENT HIGHWAY AND TO ERECT APPROPRIATE SIGNS OR MARKERS ALONG THIS PORTION OF HIGHWAY CONTAINING THE WORDS "WEBSTER ANDERSON CONGRESSIONAL MEDAL OF HONOR RECIPIENT HIGHWAY".

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4177 (Word version) -- Reps. Koon, Quinn, W. D. Smith, Clark and Frye: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERSTATE INTERCHANGE OF INTERSTATE 20 AND ROAD 204 AT EXIT 51 IN LEXINGTON COUNTY AS THE "CHARLIE ROUNTREE, JR. JUNIOR GOLF INTERCHANGE" AND INSTALL APPROPRIATE MARKERS OR SIGNS ALONG THE ROAD INDICATING THIS DESIGNATION IN RECOGNITION OF MR. CHARLIE ROUNTREE'S TIRELESS COMMITMENT TO THE GAME OF GOLF WITH EMPHASIS ON THE JUNIOR GOLF PROGRAM IN SOUTH CAROLINA.

On motion of Senator KNOTTS, with unanimous consent, the Concurrent Resolution was adopted, ordered returned to the House.

H. 4199 (Word version) -- Rep. Lourie: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE SPRING VALLEY HIGH SCHOOL "VIKINGS" OF COLUMBIA AND THEIR COACH, JOHN JONES, ON WINNING THE 2003 CLASS AAAA TRACK AND FIELD CHAMPIONSHIP TITLE AND TO COMMEND THEM FOR


Printed Page 2482 . . . . . Wednesday, May 14, 2003

THEIR HARD WORK, COMPETITIVE SPIRIT, AND DEDICATION THROUGHOUT THEIR SEASON.

The Concurrent Resolution was adopted, ordered returned to the House.

REPORTS OF STANDING COMMITTEES

Senator ELLIOTT from the Committee on Judiciary submitted a favorable with amendment report on:

H. 3673 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 20-7-776, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERMANENCY PLANNING HEARINGS FOR CHILDREN IN FOSTER CARE, SO AS TO FURTHER SPECIFY PROCEDURES FOR THESE HEARINGS; TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO SHOW COMPELLING REASONS FOR A PERMANENCY PLAN THAT DOES NOT REUNITE A CHILD WITH HIS PARENTS OR A RELATIVE AND DOES NOT TERMINATE PARENTAL RIGHTS AND TO REQUIRE THE COURT TO FIND COMPELLING REASONS FOR APPROVING SUCH A PLAN; AND TO FURTHER SPECIFY THE COURT'S AUTHORITY AND STANDARDS THAT MUST BE MET AFTER ADOPTION VIABILITY IS CONSIDERED, FOSTER CARE IS CONTINUED, AND TERMINATION OF PARENTAL RIGHTS IS NOT INITIATED; TO AMEND SECTION 20-7-768, RELATING TO STANDARDS FOR TERMINATION OF PARENTAL RIGHTS, SO AS TO REQUIRE THE COURT TO FIND COMPELLING REASONS FOR NOT INITIATING TERMINATION OF PARENTAL RIGHTS UNDER CERTAIN CIRCUMSTANCES, RATHER THAN PRESUMING THAT SUCH CIRCUMSTANCES IN AND OF THEMSELVES ARE COMPELLING REASONS; AND TO AMEND SECTION 20-7-1640, AS AMENDED, RELATING TO FINGERPRINT REVIEWS OF FOSTER CARE LICENSE APPLICANTS, SO AS TO DELETE PROVISIONS AUTHORIZING THE DEPARTMENT TO ISSUE TEMPORARY LICENSES PENDING RECEIPT OF THE RESULTS OF THE FEDERAL BUREAU OF INVESTIGATION REVIEW.

Ordered for consideration tomorrow.

Senator PEELER from the Committee on Medical Affairs submitted a favorable report on:

H. 3939 (Word version) -- Reps. Sandifer, Bales, Barfield, Bingham, G. Brown, Cato, Dantzler, Edge, Hamilton, Huggins, Thompson and Tripp: A


Printed Page 2483 . . . . . Wednesday, May 14, 2003

BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 14 TO CHAPTER 55, TITLE 44 SO AS TO ESTABLISH PROVISIONS REGULATING THE INSTALLATION AND USE OF PASSIVE SOIL-BASED ON-SITE DISPOSAL SYSTEMS USED TO COLLECT, TREAT, DISCHARGE, OR RECLAIM WASTEWATER OR SEWAGE FROM DWELLING UNITS WITHOUT THE USE OF COMMUNITY-WIDE SERVERS OR A CENTRALIZED TREATMENT FACILITY; TO REQUIRE MANUFACTURERS TO PROVIDE A WARRANTY TO EACH PROPERTY OWNER AND TO PROVIDE FINANCIAL ASSURANCE AND SYSTEM DESIGN AND INSTALLATION DOCUMENTATION TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL; TO REQUIRE SYSTEM INSTALLATION BY CERTIFIED INSTALLERS AND TO PROVIDE INSTALLATION STANDARDS AND PROCEDURES; AND TO PROVIDE PENALTIES; AND TO PROVIDE THAT WHEN REGULATIONS PROMULGATED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL RELATING TO INSTALLATION STANDARDS AND FINANCIAL ASSURANCES ARE APPROVED BY THE GENERAL ASSEMBLY, SECTIONS 44-55-1320 AND 44-55-1330, RELATING TO THESE MATTERS ARE REPEALED.

Ordered for consideration tomorrow.

Invitations Accepted

Senator COURSON from the Committee on Invitations submitted a favorable report on:

An invitation from NEWSOUTH COMMUNICATIONS to attend a reception/luncheon on the State House grounds on Wednesday, May 21, 2003, from NOON until 2:00 P.M.

Poll of the Invitations Committee
Polled 11; Ayes 11; Nays 0; Not Voting 0

AYES

Courson                   Matthews                  Patterson
O'Dell                    McGill                    Alexander

Printed Page 2484 . . . . . Wednesday, May 14, 2003

Peeler                    Kuhn                      Reese
Knotts                    Waldrep

TOTAL--11

NAYS

TOTAL--0

Senator COURSON from the Committee on Invitations submitted a favorable report on:

An invitation from the SC POULTRY FEDERATION to attend a breakfast at the Clarion Town House on Thursday, May 22, 2003, from 8:00 until 10:00 A.M.

Poll of the Invitations Committee
Polled 11; Ayes 11; Nays 0; Not Voting 0

AYES

Courson                   Matthews                  Patterson
O'Dell                    McGill                    Alexander
Peeler                    Kuhn                      Reese
Knotts                    Waldrep

TOTAL--11

NAYS

TOTAL--0

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 228 (Word version) -- Senator McConnell: A BILL TO AMEND CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ALCOHOL BEVERAGE CONTROL ACT, SO AS TO ADD SECTION 61-6-710, ESTABLISHING A SPECIAL FOOD MANUFACTURER'S LICENSE TO BE ISSUED BY THE DEPARTMENT OF REVENUE FOR A PERSON WHO MANUFACTURES FOOD ITEMS SUCH AS SAUCES AND MARINADES IN WHICH THERE IS AN ALCOHOLIC BEVERAGE INGREDIENT AND WHO DOES SO UNDER AN


Printed Page 2485 . . . . . Wednesday, May 14, 2003

AGREEMENT WITH THE ALCOHOLIC BEVERAGE MANUFACTURER, AND TO ALLOW THE PURCHASE OF THE ALCOHOLIC BEVERAGE IN CONTAINERS HOLDING QUANTITIES GREATER THAN THE QUANTITIES SOLD TO THE CONSUMER, AND TO PROVIDE THAT THE DEPARTMENT MUST ESTABLISH THE FORM OF APPLICATION AND CONDITIONS FOR ISSUANCE OF THE LICENSE; TO AMEND SECTION 12-33-210, AS AMENDED, RELATING TO THE TAXES ON LICENSES ISSUED UNDER TITLE 61, SO AS TO INCLUDE A TAX FOR THE SPECIAL FOOD MANUFACTURER'S LICENSE; TO AMEND SECTION 61-2-175, RELATING TO SHIPPING ALCOHOLIC BEVERAGES INTO THE STATE, SO AS TO PROVIDE THAT ALCOHOLIC BEVERAGES MAY BE SHIPPED DIRECTLY TO A RESIDENT WHO HOLDS A SPECIAL FOOD MANUFACTURER'S LICENSE; TO AMEND SECTION 61-6-2900, RELATING TO THE SHIPMENT OR TRANSFER OF IMPORTED ALCOHOLIC BEVERAGES, SO AS TO PROVIDE THE ALCOHOLIC BEVERAGES MAY BE SHIPPED TO A PERSON HOLDING A SPECIAL FOOD MANUFACTURER'S LICENSE; AND TO AMEND SECTION 61-6-4050, RELATING TO THE PURCHASE OF ALCOHOLIC LIQUORS FROM LICENSED RETAIL DEALERS SO AS TO ADD ALCOHOLIC LIQUORS PURCHASED PURSUANT TO A SPECIAL FOOD MANUFACTURER'S LICENSE.

Senator RITCHIE asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment (DKA\3517DW03) proposed by Senators RICHIE and McCONNELL.

On motion of Senator RITCHIE, with unanimous consent, the amendment was withdrawn.

Senators RITCHIE and McCONNELL proposed the following amendment (DKA\3549DW03), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/   SECTION __.   Chapter 4, Title 61 of the 1976 Code is amended by adding:


Printed Page 2486 . . . . . Wednesday, May 14, 2003

"Section 61-4-745.   (A)   Subject to the provisions of Section 61-4-747, a person who is at least twenty-one years of age and who is a legal resident of this State, may cause to be shipped or transported from a manufacturer of wine up to twenty-four bottles of wine each month for his own consumption or use, and not for resale, into and out of this State without the necessity of acquiring any permits or licenses or other forms of public or private authorization except for the payment of appropriate taxes.

(B)   All containers of wine shipped directly to a resident in this State must be labeled conspicuously with the words 'CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY'.

Section 61-4-747.   (A)   Notwithstanding any other provision of law, rule, or regulation to the contrary, a manufacturer of wine located within this State or outside this State that holds a wine producer and blenders basic permit issued in accordance with the Federal Alcohol Administration Act and obtains an out-of-state shipper's license, as provided in this section, may ship up to twenty-four bottles of wine each month directly to a resident of this State who is at least twenty-one years of age for such resident's personal use and not for resale.

(B)   Before sending a shipment to a resident of this State, an out-of-state shipper first shall:

(1)   file an application with the Department of Revenue;

(2)   pay a biennial license fee of four hundred dollars;

(3)   provide to the department a true copy of its current wine producer and blenders basic permit issued in accordance with the Federal Alcohol Administration Act; and

(4)   obtain from the department an out-of-state shipper's license.

(C)   Each out-of-state shipper licensee shall:

(1)   not ship more than twenty-four bottles of wine each month to a person;

(2)   ensure that all containers of wine shipped directly to a resident in this State are labeled conspicuously with the words 'CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY';

(3)   report to the department annually, by August thirty-first of each year, the total amount of wine shipped into the State the preceding year;

(4)   annually, by August thirty-first of each year, pay to the department all sales taxes and excise taxes due on sales to residents of this State in the preceding calendar year, the amount of the taxes to be


Printed Page 2487 . . . . . Wednesday, May 14, 2003

calculated as if the sale were in this State at the location where delivery is made;

(5)   permit the department to perform an audit of the out-of state shipper's records upon request; and

(6)   be deemed to have consented to the jurisdiction of the department or another state agency and the courts of this State concerning enforcement of this section and any related laws.

(D)   The out-of-state shipper on August thirty-first of each year must renew its license with the department by paying a renewal fee of four hundred dollars and providing the department a true copy of its current alcoholic beverage license issued in another state.

(E)   The department may promulgate regulations to effectuate the purposes of this section.

(F)   The department shall enforce the requirements of this section by administrative proceedings to suspend or revoke an out-of-state shipper's license if the licensee fails to comply with the requirements of this section, and the department may accept payment of an offer in compromise instead of suspension.

(G)(1)   A shipment of wine from out-of-state direct to consumers in this State from persons who do not possess a current out-of-state shipper's license is prohibited. A person who knowingly makes, participates in, transports, imports, or receives such a shipment from out-of-state is guilty of a misdemeanor and, upon conviction, must be fined one hundred dollars. A shipment of wine which violates any provision of this item is contraband.

(2)   Without limitation on any punishment or remedy, criminal or civil, a person who knowingly makes, participates in, transports, imports, or receives a shipment as provided in item (1) of this subsection from out-of-state commits an unfair trade practice." /

Amend further by adding an appropriately numbered SECTION to read:

/ SECTION __.   Section 12-21-1610 of the 1976 Code is amended to read:

"Section 12-21-1610.   No A person, firm, corporation, club, or an association or any organization within this State shall not bring, ship, transport, or receive into this State in any manner whatsoever any beer or wine as defined in Section 12-21-1010 for sale except duly licensed beer and wine wholesale distributors; provided, however, that an individual may be permitted to import beer and wine into this State for personal use and consumption within the State and not for sale, in quantities not to exceed ten cases, upon the receipt of a certificate from


Printed Page 2488 . . . . . Wednesday, May 14, 2003

the Department of Revenue authorizing the shipment and evidencing that such person has paid all taxes upon such beer and wine to the Department of Revenue. Any A person, firm, corporation, club, or an association in violation of this section shall be is subject to a penalty of not less than twenty-five dollars nor more than one thousand dollars, to be assessed and collected by the Department of Revenue in the same manner and with like effect as other taxes are collected."

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was ordered returned to the House with amendments.

HOUSE CONCURRENCE

S. 694 (Word version) -- Senator Patterson: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO WASHINGTON STREET UNITED METHODIST CHURCH OF COLUMBIA ON THE OCCASION OF THE CHURCH'S BICENTENNIAL CELEBRATION DURING 2003 AND TO EXTEND OUR APPRECIATION FOR THE CHURCH'S SIGNIFICANT ROLE IN SHAPING THE LIVES OF MANY RESIDENTS OF COLUMBIA AND THE STATE OF SOUTH CAROLINA.

Returned with concurrence.

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

THIRD READING BILL

The following Joint Resolution was read the third time and ordered sent to the House of Representatives:

S. 692 (Word version) -- Education Committee: A JOINT RESOLUTION TO DISAPPROVE REGULATIONS OF THE COMMISSION ON HIGHER EDUCATION, RELATING TO LEGISLATIVE


Printed Page 2489 . . . . . Wednesday, May 14, 2003

INCENTIVES FOR FUTURE EXCELLENCE (LIFE) SCHOLARSHIP PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2753, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 51 (Word version) -- Senators Elliott and Ravenel: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 14 TO TITLE 27 SO AS TO RECOGNIZE THE CHICORA-WACCAMAW INDIAN TRIBE AND THE PEE DEE INDIAN TRIBE AS NATIVE AMERICAN TRIBES OF SOUTH CAROLINA REPRESENTING THE CHICORA-WACCAMAW INDIAN PEOPLE AND THE PEE DEE INDIAN PEOPLE, RESPECTIVELY, AND TO CONFER UPON THEM SUCH RIGHTS AND PRIVILEGES AS ARE PROVIDED BY LAW TO INDIAN TRIBES OF THIS STATE.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.

The Committee on Judiciary proposed the following amendment (JUD0051.001), which was adopted:

Amend the bill, as and if amended, by striking the bill in its entirety and inserting therein the following:

  /   A BILL

TO AMEND SECTIONS 1-31-10 AND 1-31-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEMBERSHIP, POWERS, AND DUTIES OF THE STATE COMMISSION FOR MINORITY AFFAIRS, SO AS TO ADD TWO STATEWIDE APPOINTEES TO THE COMMISSION, DELETE OBSOLETE LANGUAGE, AND INCLUDE AFRICAN AMERICANS, NATIVE AMERICAN INDIANS, HISPANICS/LATINOS, ASIANS, AND OTHERS WITHIN THE MINORITY COMMUNITY, AND TO FURTHER PRESCRIBE CERTAIN POWERS AND DUTIES OF THE STATE COMMISSION FOR MINORITY AFFAIRS, RELATING TO RECOGNITION OF NATIVE AMERICAN INDIAN ENTITIES, TO ESTABLISH CERTAIN ADVISORY COMMITTEES, AND TO SEEK FUNDING FOR IMPLEMENTING PROGRAMS AND SERVICES FOR


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AFRICAN AMERICANS, NATIVE AMERICAN INDIANS, HISPANICS/LATINOS, ASIANS, AND OTHER MINORITY GROUPS, AND TO PROVIDE THAT THE ADDITIONAL DUTIES ASSIGNED TO THE COMMISSION ARE CONTINGENT UPON FUNDING.

Whereas, the Commission for Minority Affairs was established in 1993 with powers and duties to aid the minority community; and

Whereas, the minority population of South Carolina continues to grow and becomes more diverse such that the needs of other minority groups, who also are experiencing poverty and deprivation at disproportionate rates compared to the majority population; and

Whereas, these groups, Hispanics/Latinos, Native American Indians, Asians, and other minority groups seek government services and assistance that are culturally and linguistically appropriate; and

Whereas, minority populations have, as a part of their community, local groups which seek the assistance of governmental entities, such as the commission; and

Whereas, these local groups throughout the State are initiating programs to relieve the socio-economic deprivation of African Americans and other minority groups in their communities; and

Whereas, these community-based groups have requested the assistance of the commission's staff and would benefit greatly from clear state-based leadership. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION   1.   Section 1-31-10 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 1-31-10.   There is created a State Commission for Minority Affairs consisting of seven nine members and the Governor ex officio. The Governor shall must appoint one person from each of the six congressional districts of the State and one person three persons from the State at-large upon the advice and consent of the Senate. The Governor shall designate the chairman. The members serve for a term of four years and until their successors are appointed and qualify. Of the members first appointed, those appointed from the even-numbered congressional districts serve for a term of two years; those appointed from the odd-numbered congressional districts and the member appointed at-large serve for a term of four years. A vacancy must be filled in the same manner as original appointment for the remainder of the unexpired term. A majority of the members of the commission must be African American."


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SECTION   2.   Section 1-31-40 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 1-31-40.   (A)   The commission shall:

(1)   provide the minority community consisting of African Americans, Native American Indians, Hispanics/Latinos, Asians, and others with a single point of contact for statistical and technical assistance in the areas of research and planning for a greater economic future;

(2)   work with minority officials on the state, county, and local levels of government in disseminating statistical data and its impact on their constituencies;

(3)   provide for publication of a statewide statistical abstract on minority affairs;

(4)   provide statistical analyses for members of the General Assembly on the state of minority communities as the State experiences economic growth and changes;

(5)   provide the minority community with assistance and information on Voting Rights Act submissions in the State, as well as other related areas of concern to the minority community.;

(6)   determine, approve, and acknowledge by certification state recognition for Native American Indian entities; however, notwithstanding their state certification, the tribes have no power or authority to take any action which would establish, advance, or promote any form of gambling in this State;

(7)   establish advisory committees representative of minority groups, as the commission considers appropriate, to advise the commission;

(8)   act as liaison with the business community to provide programs and opportunities to fulfill its duties under this chapter;

(9)   seek federal and other funding on behalf of the State of South Carolina for the express purpose of implementing various programs and services for African Americans, Native American Indians, Hispanics/Latinos, Asians, and other minority groups; and

(7)(10)   perform other duties necessary to implement programs.

(B)   The commission may delegate these powers and duties as necessary.

(C)   Nothing in this chapter recognizes, creates, extends, or forms the basis of any right or claim of interest in land or real estate in this State for any Native American tribe which is recognized by the State."

SECTION   3.   (A)   This act takes effect upon approval by the Governor, except that the additional duties given to the Commission for


Printed Page 2492 . . . . . Wednesday, May 14, 2003

Minority Affairs by the amendments to Section 1-31-40 as contained in this act do not apply unless sufficient additional funds, as determined by the commission, are appropriated or otherwise made available to the commission to implement these additional duties.

(B)   Of the two members added to the Commission for Minority Affairs by the amendment to Section 1-31-10, as amended by this act, one must be appointed for an initial term of two years, which must be noted on the appointment, and until his successor is appointed and qualifies. Thereafter, the members shall serve for the term provided by law.   /

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO H. 3749, THE GENERAL APPROPRIATION BILL.

AMENDED, AMENDMENT PROPOSED
DEBATE INTERRUPTED

H. 3749 -- GENERAL APPROPRIATION BILL

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Finance.

Senator GREGORY asked unanimous consent to make a motion to take up Amendment No. 195 for immediate consideration.

There was no objection.

Amendment No. 195

Senator GREGORY proposed the following Amendment No. 195 (22176HTC03.DOC), which was adopted (#13):

Amend the amendment, as and if amended, page 3749-46, by inserting after line 18:


Printed Page 2493 . . . . . Wednesday, May 14, 2003

/   Amend the bill, further, as and if amended, Part IB, Section 24, DEPARTMENT OF NATURAL RESOURCES, page 405, by adding an appropriately numbered paragraph at the end to read:

// 24.____(DNR:   Hunting License Fees)   For the current fiscal year, the fee:

(1)   for the combination hunting and fishing license issued pursuant to Section 50-9-510(3) of the 1976 Code is increased from twenty to twenty-five dollars;

(2)   for the nonresident statewide license issued pursuant to Section 50-9-510(6) is increased from one hundred to one hundred twenty-five dollars;

(3)   for the ten consecutive days regular hunting season license for a nonresident issued pursuant to Section 50-9-510(7) of the 1976 Code is increased from fifty to seventy-five dollars;

(4)   for the three consecutive days regular hunting season license for a nonresident issued pursuant to Section 50-9-510(8) of the 1976 Code is increased from twenty-five to forty dollars; and

(5)   for the big game nonresident permit issued pursuant to Section 50-9-510(10) of the 1976 Code, the fee is increased from eighty-nine to one hundred dollars. // /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GREGORY explained the amendment.

Senator GREGORY moved that the amendment be adopted.

The amendment was adopted.

Recorded Vote

Senators McCONNELL, COURSON and KNOTTS desired to be recorded as voting against the adoption of the amendment.

Amendment No. 166

Senator KNOTTS proposed the following Amendment No. 166 (DC JEDA TRANSFER TO EFA.DOC):

Amend the committee amendment further, as and if amended, page [3749-46] by adding:

//   Amend the bill further, as and if amended, Part IB, Section 28, JOBS-ECONOMIC DEVELOPMENT AUTHORITY, page 409, beginning after line 10, by adding an appropriately numbered paragraph to read:


Printed Page 2494 . . . . . Wednesday, May 14, 2003

/   28.__ (JEDA: Transfer to EFA) The Jobs-Economic Development Authority is directed to transfer $2,778 of the agency's personal service funding to the Department of Education to be used to fund the Education Finance Act (base student cost).   /   //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator KNOTTS explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Objection

Senator MOORE asked unanimous consent to make a motion to take up Amendment No. 206A for immediate consideration.

Senator KNOTTS objected.

Senator KNOTTS continued explaining the amendment.

Objection

With Senator KNOTTS retaining the floor, Senator LEATHERMAN asked unanimous consent to make a motion that the Senate stand in recess for three minutes.

Senator RYBERG objected.

Senator KNOTTS continued explaining the amendment.

RECESS

At 11:55 A.M., with Senator KNOTTS retaining the floor, on motion of Senator LEATHERMAN, the Senate receded from business not to exceed three minutes.

At 11:59 A.M., the Senate resumed.

Senator KNOTTS continued explaining the amendment.

Senator PATTERSON spoke on the amendment.

On motion of Senator LEATHERMAN, with unanimous consent, debate was interrupted by recess with Senator PATTERSON retaining the floor.


Printed Page 2495 . . . . . Wednesday, May 14, 2003

RECESS

At 12:26 P.M., with Senator PATTERSON retaining the floor, on motion of Senator LEATHERMAN, the Senate receded from business until 1:15 P.M.

AFTERNOON SESSION

The Senate reassembled at 1:21 P.M. and was called to order by the PRESIDENT.

Point of Quorum

At 1:22 P.M., Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator LEATHERMAN moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes
Hutto                     Jackson                   Knotts
Kuhn                      Land                      Leatherman
Leventis                  Malloy                    Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     Patterson
Peeler                    Rankin                    Ravenel
Reese                     Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

A quorum being present, the Senate resumed.


Printed Page 2496 . . . . . Wednesday, May 14, 2003

AMENDED, DEBATE INTERRUPTED

H. 3749 -- GENERAL APPROPRIATION BILL

The Senate resumed consideration of the Bill, the question being the adoption of the Amendment No. 166 (DC JEDA TRANSFER TO EFA.DOC) proposed by Senator KNOTTS. Amendment No. 166 was subsequently adopted (#14).

Senator PATTERSON argued contra to the adoption of the amendment.

ACTING PRESIDENT PRESIDES

At 1:33 P.M., Senator MARTIN assumed the Chair.

Senator PATTERSON argued contra to the adoption of the amendment.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 35.11 of the Report of the Committee of Conference was violative of Rule 24.

Amend the bill further, as and if amended, Part IB, Section 35, COMMISSION ON INDIGENT DEFENSE, page 416, Proviso 35.11, line 34, by adding after / year. / the following:

/     Counties and municipalities will not be permitted to retain funds used for supplemental audits as provided in Sections 14-1-206(E)(3), 14-1-207(E)(3), and 14-1-208(E)(3). These funds will instead be remitted to the State Treasurer. The State Treasurer shall reimburse the State Auditor's Office for actual expenses incurred in meeting the requirements of Section 11-7-25. If the State Auditor finds that any jurisdiction has failed to remit the state's portion of the assessments collected by the jurisdiction, the State Auditor will notify the chief administrator of the county or municipality and the State Treasurer. The State Treasurer is directed to withhold the jurisdiction's aid to subdivisions funding in an amount equal to the amount determined by the State Auditor to be the state's portion if payment is not made by the jurisdiction within ninety days of the audit notification. The governing body of the county or municipality may reduce the funding for the operations of the officer charged with remitting these assessments to the State Treasurer in an amount equal to any amount withheld pursuant to this paragraph. The Chief Justice


Printed Page 2497 . . . . . Wednesday, May 14, 2003

and the Director of the Office of County Administration shall ensure that all judicial officers enforce the provisions of this paragraph.   /

The ACTING PRESIDENT sustained the Point of Order.

Proviso 35.11 was ruled out of order.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 36.27 was out of order inasmuch as it was violative of Rule 24.
36.27. (DPS: Ten Year Driver's License) Notwithstanding Section 56-1-210 of the 1976 Code, a license issued or renewed before July 1, 2003, expires on the licensee's birth date on the fifth calendar year after the calendar year in which it is issued. A license issued or renewed on or after July 1, 2003, expires on the licensee's birth date on the tenth calendar year after the calendar year in which it is issued. However, once a licensee becomes sixty-five years of age or older, the license expires on the licensee's birth date on the fifth calendar year after the calendar year in which it is issued. Notwithstanding Section 56-1-140 of the 1976 Code, the fee for a license that is valid for five years is twelve dollars and fifty cents and the fee for a license that is valid for ten years is twenty-five dollars. During the fifth year of a ten-year license, the licensee must submit by mail to the department a certificate from a person authorized by law in this State to screen eyes or appear in person at a department office to complete a vision screening. If a licensee fails to submit a certificate or fails to appear in person, the licensee must be fined fifty dollars. The department shall waive the fine if the person completes the requirements of this section within ninety days after the end of the fifth year of a ten-year license. This fine must be placed by the Comptroller General into a special restricted account to be used by the department to defray the expenses incurred by this section. Interest accrued by this account must remain in this account. A vision screening will not be required before October 1, 2008, if a licensee is less than sixty-five years of age, his license expires on his birth date on the fifth calendar year after the calendar year in which it was issued, and his license is renewed for an additional five years by mail or electronically. If a licensee is sixty-five years of age or older and his license expires on his birth date on the fifth calendar year after the calendar year in which it is issued, then he may renew his license by mail for an additional five years upon submission of a certificate from a person authorized by law in this State to screen eyes.


Printed Page 2498 . . . . . Wednesday, May 14, 2003

The ACTING PRESIDENT overruled the Point of Order and stated that the proviso was not included in the Report of the Committee on Finance.

Senator PATTERSON argued contra to the adoption of the amendment.

On motion of Senator LAND, with unanimous consent, Amendment No. 166 was adopted.

Senator LAND asked unanimous consent to make a motion to take up Amendment No. 86A for immediate consideration.

There was no objection.

Amendment No. 86A

Senators MOORE and LEVENTIS proposed the following Amendment No. 86A (SE INSURANCE3.TLM.DOC), which was tabled:

Amend the Finance Committee amendment, as and if amended, page [3749-29], by inserting:

Amend the bill, as and if amended, Part IA, Section 63B, B&C BD - EMPLOYEE BENEFITS, page 319, line 24, by:

COLUMN 7   COLUMN 8

/   STRIKING:       and

INSERTING:   59,290,000   59,290,000/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

Senator LAND argued in favor of the adoption of the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 27; Nays 18

AYES

Alexander                 Branton                   Courson

Printed Page 2499 . . . . . Wednesday, May 14, 2003

Cromer                    Elliott                   Fair
Giese                     Gregory                   Grooms
Hawkins                   Hayes                     Knotts
Kuhn                      Leatherman                Martin
McConnell                 Mescher                   Peeler
Rankin                    Ravenel                   Richardson *
Ritchie                   Ryberg                    Smith, J. Verne
Thomas                    Verdin                    Waldrep

Total--27

NAYS

Anderson                  Drummond                  Ford
Glover                    Holland *                 Hutto
Jackson                   Land                      Leventis
Malloy                    Matthews                  McGill
Moore                     Patterson                 Pinckney *
Reese                     Setzler                   Short

Total--18

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

PRESIDENT PRESIDES

At 2:23 P.M., the PRESIDENT assumed the Chair.

Amendment No. 92A

Senators MOORE and LEVENTIS proposed the following Amendment No. 92A (SALARY INCREASE2.TLM.DOC), which was tabled:

Amend the Finance Committee amendment, as and if amended, page [3749-29], by inserting:

Amend the bill, as and if amended, Part IA, Section 63B, B&C BD - EMPLOYEE BENEFITS, page 319, line 39, by:

COLUMN 7   COLUMN 8

/   STRIKING:   725,178       and


Printed Page 2500 . . . . . Wednesday, May 14, 2003

INSERTING:   35,725,178   35,000,000/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 27; Nays 18

AYES

Alexander                 Branton                   Courson
Cromer                    Elliott                   Fair
Giese                     Gregory                   Grooms
Hawkins                   Hayes                     Knotts
Kuhn                      Leatherman                Martin
McConnell                 Mescher                   Peeler
Rankin                    Ravenel                   Richardson *
Ritchie                   Ryberg                    Smith, J. Verne
Thomas                    Verdin                    Waldrep

Total--27

NAYS

Anderson                  Drummond                  Ford
Glover                    Holland *                 Hutto
Jackson                   Land                      Leventis
Malloy                    Matthews                  McGill
Moore                     Patterson                 Pinckney *
Reese                     Setzler                   Short

Total--18

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.


Printed Page 2501 . . . . . Wednesday, May 14, 2003

Senator LEATHERMAN asked unanimous consent to make a motion to take up Amendment No. 206A for immediate consideration.

There was no objection.

Amendment No. 206A

Senator MOORE proposed the following Amendment No. 206A (AMD3749TLMFC37), which was ruled out of order:

Amend the committee amendment, as and if amended, by striking all after the first amending instruction and inserting the following:     / by striking all after the enacting words and inserting in lieu thereof the following:

//     SECTION   1.   (A)   The total and general fund appropriations authorized in Part I A of Act 289 of 2002 are reauthorized for the fiscal year beginning July 1, 2003, with increases and/or decreases as herein below directed:

TOTAL FUNDS GENERAL FUNDS

H63 DEPT. OF ED   2,903,790,265   1,918,683,002

FY 2002-2003 Adjustment     (184,308,155)

EFA Base Student Cost @ $2,201     329,400,000

First Steps     15,900,000

National Board Certification     17,582,234

Vocational Equipment     4,998,002

School Bus Replacement     9,000,000

Governor's School for M & S     80,000

Governor's School for A & H     420,000

ED. IMPROVEMENT ACT   543,282,467

Teacher Salary Supplement   (10,921,268)

National Board Certification   (12,024,241)

Teaching Fellows   1,200,000

Advanced Placement   800,000

Higher Education Aware-

ness Program   (402,250)

Governor's Inst. of Reading   (325,463)

Palmetto Gold/Silver Awards   2,000,000

Parent Survey Postage   150,000

Winthrop Child Abuse

Awareness   (100,000)

Kingstree Elementary   (25,000)


Printed Page 2502 . . . . . Wednesday, May 14, 2003

State Agency Teacher

Pay - B&CB   725,178

Centers of Excellence   151,570

Expansion of Teacher

Cadet Program   100,000

Sumter Environmental Initiative   (94,947)

Modernize Vocational

Equipment   (4,998,022)

Education Accountability Act   23,669,374

LOTTERY EXPENDITURE

ACCOUNT   252,000,000

FY 2003-3004 Adjustment   (80,000,000)

H71 WIL LOU GRAY

OPPORTUNITY SCHOOL   4,457,146   3,306,555

FY 2002-2003 Adjustment     (273,495)

Restoration     283,660

H75 SCHOOL FOR THE

DEAF AND THE BL   22,389,742   13,649,491

FY 2002-2003 Adjustment     (1,125,967)

Restoration     1,171,236

L12 JOHN DE LA

HOWE SCHOOL   4,856,237   4,121,162

FY 2002-2003 Adjustment     (336,194)

Restoration     353,981

H03 COMMN. ON HIGHER

ED.   101,596,597   79,566,957

FY 2002-2003 Adjustment     (12,422,111)

Need Based Scholarships     10,153,565

LIFE Scholarships     16,909,649

Palmetto Fellow Scholarships     12,461,287

H06 HIGHER ED.TUITION

GRANT   22,806,035   19,736,156

FY 2002-2003 Adjustment     (30,590)

H09 THE CITADEL   85,194,461   17,139,628

FY 2002-2003 Adjustment     (1,415,728)


Printed Page 2503 . . . . . Wednesday, May 14, 2003

Restoration     733,289

H12 CLEMSON UNIV.

(EDUCATIONAL)   433,893,864   105,107,114

FY 2002-2003 Adjustment     (8,783,571)

Restoration     4,496,823

H15 UNIVERSITY OF

CHARLESTON   126,656,280   31,942,230

FY 2002-2003 Adjustment     (2,649,696)

Restoration     1,366,592

H17 COASTAL CAROLINA

UNIVERSITY   61,506,423   13,707,541

FY 2002-2003 Adjustment     (1,138,688)

Restoration     586,453

H18 FRANCIS MARION

UNIVERSITY   40,391,978   15,430,948

FY 2002-2003 Adjustment     (1,271,420)

Restoration     660,186

H21 LANDER UNIVERSITY   27,185,666   11,092,993

FY 2002-2003 Adjustment     (919,698)

Restoration     474,594

H24 S. C. STATE

UNIVERSITY   67,329,708   24,393,730

FY 2002-2003 Adjustment     (2,008,876)

Restoration     1,043,643

H27 UNIV. OF S. C. -

COLUMBIA   570,648,113   181,267,332

FY 2002-2003 Adjustment     (15,062,166)

Restoration     7,755,204

H29 U S C - AIKEN

CAMPUS   36,829,572   11,430,591

FY 2002-2003 Adjustment     (951,213)

Restoration     489,038


Printed Page 2504 . . . . . Wednesday, May 14, 2003

H34 U S C - SPARTAN-

BURG CAMPUS   38,561,733   12,879,727

FY 2002-2003 Adjustment     (1,075,578)

Restoration     551,037

H36 U S C - BEAUFORT

CAMPUS   7,314,635   2,441,807

FY 2002-2003 Adjustment     (204,936)

Restoration     104,468

H37 U S C - LANCASTER

CAMPUS   7,336,165   2,825,947

FY 2002-2003 Adjustment     (236,925)

Restoration     120,903

H38 U S C - SALKEHATCHIE

CAMPUS   5,698,440   2,478,651

FY 2002-2003 Adjustment     (207,811)

Restoration     106,045

Leadership Center     18,000

H39 U S C - SUMTER

CAMPUS   9,491,515   4,536,938

FY 2002-2003 Adjustment     (378,242)

Restoration     194,105

H40 U S C - UNION

CAMPUS   2,634,471   1,106,239

FY 2002-2003 Adjustment     (91,675)

Restoration     47,328

H47 WINTHROP UNIVER-

SITY   91,384,851   23,871,228

FY 2002-2003 Adjustment     (1,970,724)

Restoration     1,021,290

H51 MEDICAL UNIV.

OF S. C.   396,470,527   99,860,527

FY 2002-2003 Adjustment     (8,289,669)

Restoration     4,272,357


Printed Page 2505 . . . . . Wednesday, May 14, 2003

H53 CONSORTIUM OF

COMM. TEACHING H   20,013,727   17,859,527

FY 2002-2003 Adjustment     (1,522,382)

Restoration     1,000,000

H59 TECH. & COMP. ED.   396,903,033   173,112,611

FY 2002-2003 Adjustment     (14,294,709)

Restoration     7,406,319

H67 ETV COMMISSION   30,060,358   17,619,844

FY 2002-2003 Adjustment     (1,463,320)

Restoration     1,000,000

H73 VOC. REHAB.   105,082,614   14,268,114

FY 2002-2003 Adjustment     (1,167,436)

Restoration     1,000,000

J02 DEPT OF HEALTH AND

HUMAN SERVICES   3,447,732,322   578,552,786

FY 2002-2003 Adjustment     (52,634,035)

Medicaid Match     232,000,000

J04 DHEC   495,680,199   114,152,333

FY 2002-2003 Adjustment     (9,470,905)

Restoration     5,000,000

J12 DEPT OF MENTAL

HEALTH   344,935,818   178,412,977

FY 2002-2003 Adjustment     (15,324,013)

Restoration     15,000,000

J16 DEPT OF DISABILITIES

AND SPECIAL NEEDS   429,232,394   146,182,062

FY 2002-2003 Adjustment     (11,265,099)

Restoration     7,000,000

J20 DEPT OF ALCOHOL

& OTHER DRUG A   47,801,947   10,080,429

FY 2002-2003 Adjustment     (852,988)

Restoration     500,000


Printed Page 2506 . . . . . Wednesday, May 14, 2003

L04 DEPT OF SOCIAL

SERVICES   806,260,945   108,049,551

FY 2002-2003 Adjustment     (9,873,616)

Restoration     4,000,000

L24 COMMN FOR THE

BLIND   10,551,669   3,482,578

FY 2002-2003 Adjustment     (287,720)

Restoration     200,000

H79 DEPT OF ARCHIVES

AND HISTORY   6,008,600   4,131,238

FY 2002-2003 Adjustment     (340,370)

Restoration     150,000

H87 STATE LIBRARY   10,455,209   8,247,839

FY 2002-2003 Adjustment     (699,263)

Restoration     700,000

H91 ARTS COMMISSION   6,014,640   4,172,706

FY 2002-2003 Adjustment     (351,719)

Restoration     150,000

H95 MUSEUM COMMN.   6,224,263   5,042,075

FY 2002-2003 Adjustment     (257,361)

Restoration     100,000

L32 HOUSING FINANCE

AND DEVELOPMENT   136,175,294

P12 FORESTRY COMMN.   27,255,244   17,622,235

FY 2002-2003 Adjustment     (1,445,220)

Restoration     1,250,000

P16 DEPT. OF AG.   12,571,614   6,067,151

FY 2002-2003 Adjustment     (500,035)

Restoration     520,000

P20   CLEMSON UNIV

(PUBLIC SERVICE

ACTIVITIES)   66,608,247   47,137,307


Printed Page 2507 . . . . . Wednesday, May 14, 2003

FY 2002-2003 Adjustment     (3,904,850)

Restoration     1,900,000

P21 SCSU (PUBLIC

SERVICE ACTIVITIES)   4,075,039   1,355,813

FY 2002-2003 Adjustment     (114,326)

Restoration     100,000

P24 DEPT OF NATURAL

RESOURCES   68,053,410   26,218,873

FY 2002-2003 Adjustment     (2,157,979)

Restoration     2,200,000

P26 SEA GRANT CON-

SORTIUM   7,646,638   524,638

FY 2002-2003 Adjustment     (43,432)

Restoration     30,000

P28 DEPT OF PRT   56,327,633   34,233,808

FY 2002-2003 Adjustment     (2,853,304)

Restoration     2,325,452

P32 DEPT OF COMMERCE   105,648,642   13,432,733

FY 2002-2003 Adjustment     (1,246,197)

P34 JEDA   279,497

P36 PATRIOTS POINT

DEVELOPMENT AUTH.   6,723,184

B04 JUDICIAL DEPT   38,564,519   38,414,519

FY 2002-2003 Adjustment     (3,213,592)

Restoration     3,200,000

B06 SENTENCING GUIDE-

LINES COMMISSION   169,116   169,116

FY 2002-2003 Adjustment     (19,969)

Restoration     10,000

E20 ATTY GEN.'S OFFICE   10,079,394   7,774,798

FY 2002-2003 Adjustment     (645,454)


Printed Page 2508 . . . . . Wednesday, May 14, 2003

Restoration     350,000

E21PROSECUTION COOR-

DINATION COMMN   9,970,622   9,556,461

FY 2002-2003 Adjustment     (811,752)

Judicial Circuits - State Support     5,400,000

E22 OFF. OF APPELLATE

DEFENSE   1,061,938   1,061,938

FY 2002-2003 Adjustment     (87,815)

Restoration     40,000

E23 COMMN ON INDIGENT

DEFENSE   11,847,509   4,274,457

FY 2002-2003 Adjustment     (364,627)

Restoration     365,000

K05 DPS   195,386,730   109,423,386

FY 2002-2003 Adjustment     (9,009,113)

Restoration     4,000,000

N04 DEPT OF COR-

RECTIONS   360,830,934   277,354,711

FY 2002-2003 Adjustment     (22,970,279)

Restoration     30,000,000

N08 DEPT OF PROBATION,

PAROLE AND   43,840,332   22,629,437

FY 2002-2003 Adjustment     (1,845,197)

Restoration     800,000

N12 DJJ   91,251,878   71,689,639

FY 2002-2003 Adjustment     (5,937,692)

Restoration     7,500,000

L36 HUMAN AFFAIRS

COMMN   2,887,998   2,118,339

FY 2002-2003 Adjustment     (174,919)

Restoration     80,000

L46 STATE COMMN FOR

MINORITY   637,881   437,881


Printed Page 2509 . . . . . Wednesday, May 14, 2003

FY 2002-2003 Adjustment     (36,365)

Restoration     20,000

R04 PSC   9,190,832

R08 WORKERS' COMP.

COMMN   4,962,199   3,462,199

FY 2002-2003 Adjustment     (285,254)

Restoration     100,000

R12 STATE ACCIDENT

FUND   6,628,878

R14 PATIENTS' COMP.

FUND   810,927

R16 SECOND INJURY FUND   1,685,009

R20 DEPT OF INSURANCE   6,922,020   4,591,020

FY 2002-2003 Adjustment     (379,931)

Restoration     150,000

R23 BD OF FINANCIAL INST.   3,019,122

R28 DEPT OF CONSUMER

AFFAIRS   2,642,855   2,042,855

FY 2002-2003 Adjustment     (168,428)

Restoration     100,000

R36 DEPT OF LLR   30,673,315   5,888,662

FY 2002-2003 Adjustment     (486,097)

Restoration     200,000

R60 EMPLOYMENT SEC.

COMMN   113,317,139   211,774

FY 2002-2003 Adjustment     (18,111)

U12 DEPT OF TRANS   828,082,380   485,818

FY 2002-2003 Adjustment     (41,549)

U15 INFRASTRUCTURE

BANK BOARD   180,253,200


Printed Page 2510 . . . . . Wednesday, May 14, 2003

U20 COUNTY TRANSPOR-

TATION FUNDS   74,500,000

A01 LEG. DEPT-

THE SENATE   9,831,758   9,831,758

FY 2002-2003 Adjustment     (817,535)

A05 LEG. DEPT-HOUSE OF

REPRESENTATIVES   11,528,791   11,528,791

FY 2002-2003 Adjustment     (958,884)

A15 LEG. DEPT-CODIFICA-

TION OF LAWS   2,669,047   2,569,047

FY 2002-2003 Adjustment     (214,251)

A17 LEG. DEPT-LPITS   3,415,633   3,415,633

FY 2002-2003 Adjustment     (286,830)

A20 LEG. DEPT-LEG AUDIT

COUNCIL   1,101,664   1,101,664

FY 2002-2003 Adjustment     (91,587)

A85 ED. OVERSIGHT COMM.   1,412,774

C05 ADMIN. LAW JUDGES   1,662,140   1,625,890

FY 2002-2003 Adjustment     (135,297)

Restoration     135,000

D05 GOVERNOR'S OFF-

EXECUTIVE CONTROL   1,423,554   1,423,554

FY 2002-2003 Adjustment     (118,398)

D10 GOVERNOR'S OFF-

SLED   41,455,635   32,548,779

FY 2002-2003 Adjustment     (2,695,584)

Restoration     3,700,000

D17   GOVERNOR'S OFF-

EX. POLICY   58,324,936   7,365,242

FY 2002-2003 Adjustment     (649,480)


Printed Page 2511 . . . . . Wednesday, May 14, 2003

D20 GOVERNOR'S OFF-

MANSION/GROUNDS   455,724   455,724

FY 2002-2003 Adjustment     (36,938)

E04 LT GOV.'S OFFICE   316,868   316,868

FY 2002-2003 Adjustment     (26,124)

E08 SECRETARY OF STATE   2,146,948   1,153,553

FY 2002-2003 Adjustment     (94,919)

E12 COMPT. GEN.'S OFFICE   4,709,746   4,709,746

FY 2002-2003 Adjustment     (389,464)

Restoration     150,000

E16 STATE TREASURER   8,396,776   3,222,579

FY 2002-2003 Adjustment     (266,516)

Restoration     100,000

E24 ADJ. GEN.'S OFFICE   28,512,531   7,754,761

FY 2002-2003 Adjustment     (468,215)

Restoration     200,000

E28 ELECTION COMMN   4,814,180   3,030,854

FY 2002-2003 Adjustment     (1,268,907)

F03 BUDGET AND CON-

TROL BOARD   240,214,752   27,264,969

FY 2002-2003 Adjustment     (2,141,549)

F27 B & C-AUDITOR'S OFF.   3,694,067   3,694,067

FY 2002-2003 Adjustment     (305,321)

F30 B & C-EMPLOYEE

BENEFITS   20,298,562   20,241,998

2% COLA     31,000,000

Ins Premium/Benefit Hold Harmless     59,290,000

F31 B & C-CAPITAL

RESERVE FUND   101,606,475   101,606,475

FY 2003-2004 Adjustment   (3,007,278)   (3,007,278)


Printed Page 2512 . . . . . Wednesday, May 14, 2003

R44 DEPT OF REVENUE   43,649,639   35,111,474

FY 2002-2003 Adjustment     (3,067,135)

R52 ST. ETHICS COMMN   517,743   467,743

FY 2002-2003 Adjustment     (38,584)

Restoration     35,000

S60 PROCUREMENT REVIEW

PANEL   119,407   119,407

FY 2002-2003 Adjustment     (9,887)

V04 DEBT SERVICE   226,993,036   226,993,036

FY 2002-2003 Adjustment     (8,000,000)

FY 2003-2004 Adjustment     (1,773,568)

X12 AID TO SUBDIVISIONS

- COMPTROLLER   2,513,698   2,513,698

FY 2002-2003 Adjustment     (214,982)

X22 AID TO SUBDIVISIONS

- STATE TREASURER   235,956,085   235,956,085

FY 2002-2003 Adjustment     (7,367,852)

Aid to Local Subdivisions Restoration     156,512

GRAND TOTAL

(B)   The total funds authorization for the respective agencies shall be adjusted and reported by the Budget and Control Board, as necessary, in accordance with the agency filings detailing anticipated federal and other fund revenues.

(C)   The provisions of Part I B of Act 289 of 2002 are reauthorized and made applicable to fiscal year 2003-2004 except as modified or superceded by the provisions of this item as follows:

SECTION 1 - DEPARTMENT OF EDUCATION (H63)

1.4.   (SDE: EFA Formula/Base Student Cost Inflation Factor) To the extent possible within available funds, it is the intent of the General Assembly to provide for 100 percent of full implementation of the Education Finance Act to include an inflation factor projected by the Division of Budget and Analyses to match inflation wages of public school employees in the Southeast. The base student cost for the


Printed Page 2513 . . . . . Wednesday, May 14, 2003

current fiscal year has been determined to be $2,033 $2,201 which includes a 0% inflation factor.

Any unallocated Education Finance Act funds at the end of the current fiscal year must be allocated to the school districts for school building aid on a nonmatching basis on the same basis that districts receive Education Finance Act allocations and/or for Summer School.

1.8.   (SDE: Governor's School for Science & Math) Any unexpended balance on June 30 of the prior fiscal year of funds appropriated to or generated by the Governor's School for Science and Mathematics may be carried forward and expended in the current fiscal year pursuant to the direction of the board of trustees of the school. Of the general fund appropriation to the Governor's School for Science and Mathematics, $30,000 must be used to provide for library and facilities improvements at Coker College that will be of benefit both to the college and the school.

1.21.   (SDE: Praxis Waiver) For individuals with work experience and content area degree, but who lack South Carolina teaching credentials, the State Board of Education, for the Program for Alternative Certification for Educators (PACE), is authorized to waive, for an individual program eligibility purposes, the satisfactory completion of the Praxis II subject area exam for up to twelve months one academic year after the first day of employment. The individual granted this waiver shall be entitled to compensation under the school district's teacher salary schedule based on degree and years experience as a teacher.

1.24.   (SDE: Statewide Systemic Initiative) Of the funds appropriated to the Department of Education, $75,000 must be provided to the Charleston Science and Mathematics Hubs for curriculum development at the South Carolina Aquarium.

1.33.   (SDE: PSAT/PLAN Reimbursement) Funds appropriated for assessment shall be used to pay for the administration of the PSAT or PLAN test to tenth grade students to include the testing fee and report fee. In addition, full implementation of the readiness tests for grades one and two required under Section 59-18-330 is delayed while the system is revised. SDE is authorized to carry forward into the current fiscal year, prior year state assessment funds for the purpose of paying for state assessment activities not completed by the end of the fiscal year including the scoring of the spring 2002 2003 PACT assessment and further development of the South Carolina Readiness Assessment.

1.43.   (SDE: Specialists in Unsatisfactory Schools) Notwithstanding any other provision of law, the State Department of


Printed Page 2514 . . . . . Wednesday, May 14, 2003

Education may assign teacher specialists, principal specialists, principal leaders, and curriculum specialists to schools designated as unsatisfactory or below average according to the enrollment of the school and as recommended by the review team. Teacher specialists may be assigned to kindergarten level, if recommended by the review team. Furthermore, the average number of teacher specialists assigned to schools may not exceed five. Teacher specialists may be placed across grade levels and across core subject areas when placement meets program criteria based on external review team recommendations, need, number of teachers receiving support, and certification and experience of the specialist. A teacher specialist may be assigned to support classroom teachers in the areas of special education and limited English proficiency when warranted by the needs of the student population, recommended by an external review team and approved by the State Board of Education. Retired educators may be hired as teacher specialists, principal specialists, principal leaders, or curriculum specialists and shall be exempt from the earnings limitations of the State Retirement System. Teacher specialists who have successfully completed three years of service as a teacher specialist may reapply for assignment as a teacher specialist. Unsatisfactory schools that had previously received technical assistance under the Impaired School District Program may continue to receive the service of teacher specialists provided by the State for a fourth year if recommended by the review team and approved by the State Board of Education if the school meets the criteria of the tier proposal. Teacher specialists who serve beyond three years are no longer guaranteed employment in their previous district are limited to three years of service at one school unless the specialist submits application for an extension and that application is accepted by the State Department of Education and placement is made. Upon acceptance and placement, the specialist can receive the salary and supplement for two additional years, but is no longer attached to the sending district or guaranteed placement in the sending district following tenure in the program as provided in Section 59-18-1530 (F) of the South Carolina Code of Laws. Teacher specialist funds may be carried forward from the prior fiscal year into the current fiscal year for the Teacher Specialists On-Site Program. A principal specialist may be continued for a third year if requested by the local school board, recommended by the external review team, and approved by the State Board of Education. For the third year, only the principal specialist salary supplement will be paid by the State. Provided, further, that the Education Oversight

Printed Page 2515 . . . . . Wednesday, May 14, 2003

Committee and the State Department of Education shall examine base and supplementary compensation for teacher specialists and those fulfilling similar responsibilities in other states to determine if adjustments in the compensation should be made to encourage teacher specialists to serve rural areas. Recommendations should be provided to the General Assembly by December 31, 2002.

1.57.   (SDE: Hold Harmless) The provisions of 59-21-170 of the 1976 Code, as amended, do not apply for Fiscal Year 2002-03.

1.63.   (SDE: School Districts and Special Schools Flexibility) For 2002-03 2003-04, all school districts and special schools of this State may transfer up to twenty thirty percent of funds between programs to any instructional program with the same funding source. The South Carolina Department of Education must establish a procedure for the review of all transfers authorized by this provision. The details of such transfers must be provided to members of the General Assembly upon request. School districts and special schools may carry forward unexpended funds from the prior fiscal year into the current fiscal year to be used for the same purpose. All transfers executed pursuant to this provision must be completed by May first of the current fiscal year. All school districts and special schools of this State may expend funds received from the Children's Education Endowment Fund for school facilities and fixed equipment assistance, for any instructional program. The Education Oversight Committee shall review the utilization of the flexibility provision to determine how it enhances or detracts from the achievement of the goals of the educational accountability system, including the ways in which school districts and the state organize for maximum benefit to classroom instruction, priorities among existing programs and services, and the impact on short, as well as, long-term objectives. The State Department of Education shall provide the reports on the transfers to the Education Oversight Committee for the comprehensive review. This review shall be provided to the members of the General Assembly annually.

1.68.   (SDE: School Start Study) The State Board of Education is directed to establish a task force comprised of superintendents, principals, teachers, parents, school board members, and representatives of business and industry, including tourism-related industries no later than July 1, 2002. This task force to the extent possible shall be equally divided among proponents of existing or earlier starting dates for schools, proponents of later starting dates for schools, including proponents for dates after Labor Day, and persons who legitimately have no preferences. The task force shall make


Printed Page 2516 . . . . . Wednesday, May 14, 2003

recommendations to the board including, but not limited to, a suggested uniform beginning date for the annual school term. Minimum necessary expenses, if any, associated with the work of this task force shall be paid from funds appropriated in Part IA, Section 1 II, Other Operating Expenses. The task force shall report its findings to the State Board of Education no later than January 1, 2003.

1.70.   (SDE: Homework Centers Allocation) The Department of Education is authorized to allocate homework center funds first, by establishing an equitable base amount for unsatisfactory schools; second, by establishing an equitable base amount for below average schools; and third, by allocating any remaining funds based on the ADM of below average schools.

1.72.   (SDE: Governor's School for the Arts and Humanities Carry Forward) Any unexpended balance on June 30 of the prior fiscal year of funds appropriated to or generated by the South Carolina Governor's School for the Arts and Humanities may be carried forward and expended in the current fiscal year for the purpose of purchasing instructional materials not funded under the State Adopted Textbook Program.

1.78.   (SDE: National Board Certification Incentive) Public school classroom teachers or classroom teachers who work with classroom teachers who are certified by the State Board of Education and who have been certified by the National Board for Professional Teaching Standards shall be paid a $7,500 salary supplement in the year of achieving certification. Teachers employed at the special schools shall be eligible for this $7,500 salary supplement. The special schools include the Governor's School for Science and Math, Governor's School for the Arts and Humanities, Wil Lou Gray Opportunity School, John de la Howe School, School for the Deaf and the Blind, Felton Lab, Department of Juvenile Justice and Palmetto Unified School District 1. The $7,500 salary supplement shall be added to the annual pay of the teacher for the length of the national certificate. The Center for Teacher Recruitment shall develop guidelines and administer the programs whereby teachers applying to the National Board for Professional Teaching Standards for certification may receive a loan equal to the amount of the application fee. One-half of the loan principal amount and interest shall be forgiven when the required portfolio is submitted to the national board. Teachers attaining certification within three years of receiving the loan will have the full loan principal amount and interest forgiven. Teachers who previously submitted a portfolio to the National Board for Professional Teaching


Printed Page 2517 . . . . . Wednesday, May 14, 2003

Standards for certification under previous appropriation acts, shall receive reimbursement of their certification fee as prescribed under the provisions of the previous appropriation act. Of the funds appropriated in Part IA, Section 1, XIII.A. for National Board Certification, the State Department of Education shall transfer to the Center for Teacher Recruitment the funds necessary for the administration of the loan program. In addition, teachers who are certified by the National Board for Professional Teaching Standards shall enter a recertification cycle for their South Carolina certificate consistent with the recertification cycle for national board certification. National board certified teachers moving to this State are exempted from initial certification requirements and are eligible for continuing contract status. Their recertification cycle will be consistent with national board certification.

Provided, further, that in calculating the compensation for teacher specialists, the State Department of Education shall include state and local compensation as defined in Section 59-18-1530 to include local supplements except local supplements for National Board certification. Teacher specialists remain eligible for state supplement for National Board certification.

1.80.   (SDE: Status Offender Pilot Program) The Wil Lou Gray Opportunity School and the Department of Juvenile Justice are to pilot an Alternative School Program for status offenders committed to the Department of Juvenile Justice. The program is to be housed at the Opportunity School. The Department of Juvenile Justice is to transfer to the Opportunity School any EFA funds received on behalf of the students in the program. In addition, the Department of Education is to reimburse the Opportunity School the appropriate Alternative School pupil weight for the students in the program. The students in the pilot program are required to be included in the Department of Juvenile Justice's reported ADM.

1.81.   (SDE: National Board Certification Incentive Surplus) For Fiscal Year 2003-04, National Board Certification Incentive appropriation excess of all obligations to include the national board certification incentive salary supplement, related fringe, loan principal amount and interest forgiven, and the administration funds necessary for the Center for Teacher Recruitment shall be distributed to school districts and allocated based on the Education Finance Act Formula.

SECTION 1A - DEPARTMENT OF EDUCATION - EIA (H63)

1A.4.   (SDE-EIA: XI.A.1-Gifted & Talented/CHE 8th Grade Advisement) Of the funds appropriated in Part IA, Section 1 XI.A.1.


Printed Page 2518 . . . . . Wednesday, May 14, 2003

Gifted and Talented, $402,250 shall be used by the Commission on Higher Education to be expended on the eighth grade advisement program. The Commission on Higher Education must provide a report on the effectiveness of the advisement program to the Education Oversight Committee by October 1 of the current year.

1A.14.   (SDE-EIA: XI.B - Half Day Program for Four-Year-Olds) Funds appropriated in Part IA, Section 1 XI.B. for half-day programs for four-year-olds shall be distributed based on the previous three years' average for students tested as "not ready" on the CSAB, prior year number of students in kindergarten eligible for free and reduce price lunch, however, no district shall receive less than 90 percent of the amount it received in the prior fiscal year.

1A.19.   (SDE-EIA: XI.C.3.-Teacher Salaries/SE Average) The projected Southeastern average teacher salary shall be the average of the average teachers salaries of the southeastern states as projected by the Division of Budget and Analyses. For the current school year the Southeastern average teacher salary is projected to be $39,551 $40,659. It is the intent of the General Assembly to exceed the Southeastern average teacher salary as projected by $300 $400. The General Assembly remains desirous of raising the average teacher salary in South Carolina through incremental increases over the next few years so as to make such equivalent to the national average teacher salary. The calculation of the Southeastern average is not to include National Board Certification or Teacher Specialist salary supplements.

Funds appropriated in Part IA, Section 1 XI.C.3. for Teacher Salaries must be used to increase salaries of those teachers eligible pursuant to Section 59-20-50 (b), to include classroom teachers, librarians, guidance counselors, psychologists, social workers, occupational and physical therapists, school nurses, orientation/mobility instructors, and audiologists in the school districts of the state. Funds in excess of that necessary to fully fund the Southeastern average plus $400 may be transferred and allocated to the local school districts for employer contributions.

1A.23.   (SDE-EIA: XI.E.3.-Evaluation/EIA Programs) Of the funds appropriated in Part IA, Section 1 XI.E.3. for EIA Implementation, Other Operating Expenses, $349,124 may only be used by the State Department of Education to support its contracted program evaluations and the conduct of the State Board of Education's annual assessment of EIA-funded education reforms and the related report, pursuant to Section 59-6-12. The Of the remaining funds $225,000 appropriated in Part IA, Section 1 XI.E.3. for EIA Implementation, Other Operating


Printed Page 2519 . . . . . Wednesday, May 14, 2003

Expenses shall be used to support the continuation of program and policy evaluations and studies and to support the state's participation in the Middle Grades Project, at no less than $100,000, the middle grade reading, science, and math resource and career exploration project of the sixth grade class at Kingstree Elementary School at no more than $25,000. Provided further, for the current fiscal year, $100,000 shall be provided to the South Carolina Educational Policy Center for collaborative projects with the Department of Education and the Education Oversight Committee to provide research based information and consultation services on technical issues related to establishing a more thorough accountability system for public schools, school districts, and the K-12 education system.

1A.24.   (SDE-EIA: XI.F.3-CHE/Teacher Recruitment) Of the funds appropriated in Part IA, Section 1 X1.F.3. for the Teacher Recruitment Program, the S.C. Commission on Higher Education shall distribute a total of $4,701,751 $5,901,751 to the S.C. Center for Teacher Recruitment for a state teacher recruitment program, of which $3,146,056 $4,346,056 must be used for the Teaching Fellows Program and of which $200,000 must be used for specific programs to recruit minority teachers, and shall distribute $467,000 to S.C. State University to be used only for the operation of a minority teacher recruitment program and therefore shall not be used for the operation of their established general education programs. The S.C. Commission on Higher Education shall ensure that all funds are used to promote teacher recruitment on a statewide basis, shall ensure the continued coordination of efforts among the three teacher recruitment projects, shall review the use of funds and shall have prior program and budget approval. The S.C. State University program, in consultation with the Commission on Higher Education, shall extend beyond the geographic area it currently serves. Annually, the Commission on Higher Education shall evaluate the effectiveness of each of the teacher recruitment projects and shall report its findings and its program and budget recommendations to the House and Senate Education Committees, the State Board of Education and the Education Oversight Committee by October 1 annually, in a format agreed upon by the Education Oversight Committee and the Department of Education.

1A.26.   (SDE-EIA: XI.A.1-Arts in Education) Funds appropriated in Part IA, Section 1 XI.A.1. Arts Curricula shall be used to support arts education curriculum in the visual and performing arts which incorporates strengths from the Arts in Education pilot sites. These funds shall be distributed under a competitive grants program;


Printed Page 2520 . . . . . Wednesday, May 14, 2003

however, up to 33% of the total amount of the grant fund shall be made available as "Aid to Other Agencies" to facilitate the funding of professional development arts institutes that have been approved by the State Department of Education for S.C. arts teachers and appropriate classroom teachers. Arts Curricular Grants funds may be retained and carried forward into the current fiscal year to be expended in accordance with the proposed award.

1A.27.   (SDE-EIA: XI.B-Parenting/Family Literacy) Funds appropriated in Part IA, Section 1 X1.B. for the Parenting/Family Literacy Programs and allocated to the school districts for parenting projects in the prior fiscal year may be retained and expended by the school districts for the same purpose during the current fiscal year. Of the funds appropriated in Part IA, Section 1 XI.B. for the Parenting/Family Literacy, $100,000 must be used for the Child Abuse Awareness and Prevention Project at Winthrop University and $125,000 must be used for the Accelerated Schools Project at the College of Charleston.

1A.31.   (SDE-EIA: XI.C.4-SC Statewide Systemic Initiative CSO Mathematics and Science Unit) The funds appropriated in Part IA, Section 1 XI.C.4. shall be used for Mathematics and Science Hubs Centers which support improvements in mathematics and science through resources and professional development in instructional techniques and strategies, use of technology in the classroom, leadership, content in subject areas and assessment. These efforts will be coordinated with programs such as Tech Prep Consortia using applied learning techniques and which assist teachers in using computers in the classroom.

1A.35.   (SDE-EIA: XI-Lapsed Funds and Revenue Shortfall) Notwithstanding any other provision of law, any lapsed funds, to include unexpended appropriated funds or revenue in excess of appropriations in the EIA Fund, in any prior or current fiscal year must first be used to offset an official EIA revenue shortfall declared by the Board of Economic Advisors and then to fund any school district's appropriation deficit in EIA Teacher Salary Supplement, Teacher Salary Supplement Fringe, or National Board Certification Incentive. The remaining lapsed funds must be used in accordance with S.C. Code of Laws Section 59-21-420. Furthermore, in the event an official EIA revenue shortfall is declared, funds appropriated for EIA teacher salaries and related fringe benefits in Part IA, Section 1 XI.C.3. and XI.F.3. are exempt from any reduction required to offset the shortfall.


Printed Page 2521 . . . . . Wednesday, May 14, 2003

1A.36.   (SDE-EIA: XI.C.3-Teacher Supplies) From the funds appropriated, all certified public school, or certified special school classroom teachers, certified media specialists, and certified guidance counselors who are employed by a school district or a charter school as of November 30 of the current fiscal year, shall receive reimbursement of two hundred dollars each school year to offset expenses incurred by them for teaching supplies and materials. Funds shall be disbursed by the department to School districts by July 15 based on the last reconciled Professional Certified Staff (PCS) listing from the previous year. Any deviation in the PCS and actual teacher count will be reconciled by December 31 or as soon as practicable thereafter. School districts shall disburse these funds in a manner separate and distinct from their payroll check on the first day teachers, by contract, are required to be in attendance at school for the current contract year. This reimbursement shall not be considered by the state as taxable income. Special schools include the Governor's School for Science and Math, the Governor's School for the Arts and Humanities, Wil Lou Gray Opportunity School, John de la Howe School, School for the Deaf and the Blind, Felton Lab, Department of Juvenile Justice, and Palmetto Unified School District. Funds distributed to school districts or allocated to schools must not supplant existing supply money paid to teachers from other sources. If a school district requires receipts for tax purposes the receipts may not be required before December 31. Districts that do not wish to require receipts may have teachers retain the receipts and certify for the district they have received the $200 for purchase of teaching supplies and/or materials and that they have purchased or will purchase supplies and/or materials during the fiscal year for the amount of $200. Districts shall not have an audit exception related to non-retention of receipts in any instances where a similar instrument is utilized. Any district requiring receipts must notify any teacher from whom receipts have not been submitted between November 25 and December 6 that receipts must be submitted to the district. Districts may not add any additional requirement not listed herein related to this reimbursement. The department must withhold local school innovation funds from any district while in non-compliance with this provision. Any funds not disbursed to teachers may not be retained by the districts and must be returned to the department.

1A.40.   (SDE-EIA: Specialists in Unsatisfactory Schools) Notwithstanding any other provision of law, the State Department of Education may assign teacher specialists, principal specialists, principal


Printed Page 2522 . . . . . Wednesday, May 14, 2003

leaders, and curriculum specialists to schools designated as unsatisfactory or below average according to the enrollment of the school and as recommended by the review team. Teacher specialists may be assigned to kindergarten level, if recommended by the review team. Furthermore, the average number of teacher specialists assigned to schools may not exceed five. Teacher specialists may be placed across grade levels and across core subject areas when placement meets program criteria based on external review team recommendations, need, number of teachers receiving support, and certification and experience of the specialist. A teacher specialist may be assigned to support classroom teachers in the areas of special education and limited English proficiency when warranted by the needs of the student population, recommended by an external review team and approved by the State Board of Education. Retired educators may be hired as teacher specialists, principal specialists, principal leaders, or curriculum specialists and shall be exempt from the earnings limitations of the State Retirement System. Teacher specialists who have successfully completed three years of service as a teacher specialist may reapply for assignment as a teacher specialist. Unsatisfactory schools that had previously received technical assistance under the Impaired School District Program may continue to receive the service of teacher specialists provided by the State for a fourth year if recommended by the review team and approved by the State Board of Education if the school meets the criteria of the tier proposal. Teacher specialists who serve beyond three years are no longer guaranteed employment in their previous district are limited to three years of service at one school unless the specialist submits application for an extension and that application is accepted by the State Department of Education and placement is made. Upon acceptance and placement, the specialist can receive the salary and supplement for two additional years, but is no longer attached to the sending district or guaranteed placement in the sending district following tenure in the program as provided in Section 59-18-1530 (F) of the South Carolina Code of Laws. Teacher specialist funds may be carried forward from the prior fiscal year into the current fiscal year for the Teacher Specialists On-Site Program. A principal specialist may be continued for a third year if requested by the local school board, recommended by the external review team, and approved by the State Board of Education. For the third year, only the principal specialist salary supplement will be paid by the State. Provided, further, that the Education Oversight Committee and the State Department of Education shall examine base

Printed Page 2523 . . . . . Wednesday, May 14, 2003

and supplementary compensation for teacher specialists and those fulfilling similar responsibilities in other states to determine if adjustments in the compensation should be made to encourage teacher specialists to serve rural areas. Recommendations should be provided to the General Assembly by December 31, 2002.

1A.45.   (SDE-EIA: Teacher and Principal Specialists) For each principal specialist funded and designated to a school district, the school district may designate an apprentice to work with the specialist.

1A.46.   (SDE-EIA: Report Card Printing) The State Department of Education is prohibited from printing the Annual School and District Report Card in any other color other than black and white. School districts must advertise the results of their schools' report cards in an audited newspaper of general circulation in their geographic area within 45 days. If the audited newspaper has previously published the entire report card results as a news item, this requirement is waived for the school and district. Notwithstanding Section 59-18-930, the requirement to mail school and district report cards is suspended and report cards may be sent home with the students. The parent survey required by Section 59-28-190 may be sent home with the students and the department must use the results of the parent survey to report parent perceptions on the school report cards.

1A.47.   (SDE-EIA: Technical Assistance) Notwithstanding any other provision of law, and in order to best meet the needs of low-performing schools, the funding provided in Section 1 XI.A.4 Special Items may be reallocated among the programs specified in this section. The Department of Education shall establish criteria for reviewing and assisting schools that will be rated unsatisfactory using a tiered system with the lowest-performing schools receiving highest priority. Not to exceed the statewide total number of specialists stipulated by the Education Accountability Act, the highest priority schools assistance shall include a year-long technical assistance team that may include a lead principal and/or curriculum specialist. All specialists shall have a demonstrated record of success in their field and shall be entitled to the incentives and benefits of the teacher specialist. Technical assistance for below average schools shall be provided to the extent possible, in order of need. The Department of Education shall provide information on the technical assistance strategies and their impact to the State Board of Education, the Education Oversight Committee, the Senate Education Committee, the Senate Finance Committee, the House of Representatives Education and Public Works Committee, and the House of Representatives Ways and Means Committee annually.


Printed Page 2524 . . . . . Wednesday, May 14, 2003

The Department of Education shall pilot a structured academic mentoring program for students scoring below average on PACT in up to thirty schools including ten unsatisfactory schools, ten below average schools and ten average schools. Data shall be compiled and a report given to the State Board of Education and the Education Oversight Committee by January 12, 2003 annually.

1A.49.   (SDE-EIA: School Districts and Special Schools Flexibility) For 2002-03 2003-04, all school districts and special schools of this State may transfer up to twenty thirty percent of funds between programs to any instructional program with the same funding source. The South Carolina Department of Education must establish a procedure for the review of all transfers authorized by this provision. The details of such transfers must be provided to members of the General Assembly upon request. School districts and special schools may carry forward unexpended funds from the prior fiscal year into the current fiscal year to be used for the same purpose. All transfers executed pursuant to this provision must be completed by May first of the current fiscal year. All school districts and special schools of this State may expend funds received from the Children's Education Endowment Fund for school facilities and fixed equipment assistance, for any instructional program. The Education Oversight Committee shall review the utilization of the flexibility provision to determine how it enhances or detracts from the achievement of the goals of the educational accountability system, including the ways in which school districts and the state organize for maximum benefit to classroom instruction, priorities among existing programs and services, and the impact on short as well as long-term objectives. The State Department of Education shall provide the reports on the transfers to the Education Oversight Committee for the comprehensive review. This review shall be provided to the members of the General Assembly annually.

SECTION 1AA - LOTTERY EXPENDITURE ACCOUNT (H66)

1AA.1.   (LEA: Education Lottery Funds) Funds appropriated from the Education Lottery Account must be used to supplement and not supplant existing funds for education. All lottery revenue in excess of the appropriations in the Education Lottery Account carried forward from the prior fiscal year must be used to support the appropriations needed to fully fund scholarships in the following priority order:

1)   Hope Scholarships   2)   LIFE Scholarships

3)   Palmetto Fellows Scholarships   Any remaining funds after the scholarships have been funded must be appropriated to the State Department of Education for the purchase and repair of school buses.


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The amounts listed below reflect the dollars contained and appropriated in Part 1A of this Act:

Commission on Higher Education:

Tuition Assistance - Two-year Institutions       $33,000,000

LIFE Scholarships                           $40,000,000

HOPE Scholarships                         $6,000,000

Palmetto Fellows Scholarships                 $5,000,000

Need-Based Grants                         $3,000,000

Teacher Grants                             $2,000,000

National Guard Tuition Repayment Program     $1,500,000

Technology-Public 4-Year Univ./2-Year

Institutions & Tech Colleges                   $12,000,000

Endowed Chairs                             $30,000,000

SC Tuition Grants:

Tuition Grants                           $3,000,000

SC State University:

Research & Technology                       $3,000,000

Department of Education:

Bonus for Instructional Staff                   $32,000,000

State Library:

Aid to County Libraries                       $1,500,000

Funds appropriated to the Department of Education are to be allocated to the local school districts for a salary bonus of not less than $500 for all instructional personnel in positions that receive the teacher salary supplement and those staff classified in positions codes 89 through 94.   The Commission on Higher Education is authorized to temporarily transfer funds between appropriated line items in order to ensure the timely receipt of scholarships and tuition assistance.

Fiscal Year 2003-2004 funds appropriated to the Commission on Higher Education for Tuition Assistance must be distributed to the technical colleges and 2-year institutions as provided in Section 59-150-360.

For Fiscal Year 2003-2004 the first $7,000,000 of unclaimed prize money is appropriated to the Commission on Higher Education to be distributed equally to the Historically Black Colleges and Universities, as defined in 20 U.S. Code Section 1061, for construction and renovation projects. Any revenue in excess of the $7,000,000 must be appropriated to the Commission on Higher Education for allocation to the two-year colleges for tuition assistance in accordance with Section 59-150-360.


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Fiscal Year 2003-2004 net lottery proceeds and investment earnings in excess of the certified net lottery proceeds and investment earnings for this period are appropriated and must be used to ensure that all LIFE, Palmetto Fellows, and HOPE scholarships for Fiscal Year 2003-2004 are fully funded.

If the lottery revenue for Fiscal Year 2003-2004 is less than the amounts appropriated, the projects and programs receiving appropriations for any such year shall must have their appropriations reduced on a pro rata basis, except that a reduction must not be applied to the funding of LIFE, Palmetto Fellows, and HOPE scholarships.

The Budget and Control Board may distribute funds from the Education Lottery Account on a monthly basis during the final quarter of the fiscal year.

1AA.3.   (LEA: SDE Lottery Carry Forward) The Department of Education is authorized to carry forward and expend any unexpended balances of lottery funds from the prior fiscal year into the current fiscal year for expenditures incurred in the prior fiscal year or to be expended for the same purpose.

SECTION 5A - COMMISSION ON HIGHER EDUCATION (H03)

5A.4.   (CHE: Councils, Committees, Etc., Representation) Each four-year campus of each state-supported public institution of higher learning, as defined in Section 59-103-5, shall have the same representation on all formal and informal councils, advisory groups, committees, and task forces of the commission. Independent four-year colleges shall have representation on all formal and informal committees and commissions dealing with higher education statewide issues.

5A.5.   (CHE: Access & Equity Programs) Of the funds appropriated herein for Access and Equity Programs, the Commission on Higher Education shall distribute at least $105,319 $99,306 to South Carolina State University, $26,309 $24,807 to Denmark Technical College, and $630,696 $594,688 to the Access and Equity Program. With the funds appropriated herein the colleges and universities shall supplement their access and equity programs so as to provide, at a minimum, the same level of minority recruitment activities as provided during the prior fiscal year.

5A.7.   (CHE: Reciprocal Tuition) The University of South Carolina's Aiken Campus and Aiken Technical College may offer in-state tuition to any student whose legal residence is in the Richmond/Columbia County area of the neighboring state of Georgia


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as long as the Georgia Board of Regents continues its Georgia Tuition Program by which in-state tuition is offered to students residing in the: (1) Aiken/Edgefield/McCormick County Area of the State of South Carolina; or (2) if the Georgia Board of Regents does not extend its Georgia Tuition Program to include McCormick County residents, then students residing in the Aiken/Edgefield County Area of the State of South Carolina.

5A.8.   (CHE: SC Manufacturing Extension Partnership) The South Carolina Commission on Higher Education shall review annually the activities of the South Carolina Manufacturing Extension Partnership, make a budget recommendation to the General Assembly, and coordinate the allocation of funds among all participating institutions. The funds appropriated to the University of South Carolina - Columbia for the South Carolina Manufacturing Extension Partnership may not be used for any other purpose. The commission shall review the membership of the South Carolina Manufacturing Extension Partnership Board to insure appropriate representation of all participating institutions.

5A.9.   (CHE: Allowable Tuition and Fees) State funds shall not be used to provide undergraduate out-of-state subsidies to students attending state-supported public institutions of higher learning, as defined in Section 59-103-5.

Four-year state supported institutions of higher learning may raise their in-state undergraduate tuition for FY 2002-03 a maximum of $250 per semester above the increase in the Higher Education Price Index. If an institution's tuition and fees are below the state average for tuition and fees, then this restriction does not apply. The state average tuition shall be calculated separately for research institutions and four-year universities as defined in Section 59-103-15(B), with the Medical University of South Carolina being excluded due to it being the only free-standing health science center in the state.

5A.10.   (CHE: Advanced Placement) Students successfully completing advanced placement courses and receiving a score of three (3) or above on the exam shall receive advanced placement credit for each course in all post-secondary public colleges in South Carolina.

5A.11.   (CHE: African-American Loan Program) Of the funds appropriated to the Commission on Higher Education for the African-American Loan Program, $208,866 $150,995 shall be distributed to South Carolina State University and $74,596 $53,928 shall be distributed to Benedict College, and must be used for a loan program with the major focus of attracting African-American males to


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the teaching profession. The Commission of Higher Education shall act as the monitoring and reporting agency for the African-American Loan Program. Of the funds allocated according to this proviso, no more than 10% shall be used for administrative purposes.

5A.12.   (CHE: Scholarship and Grants Allocation) In instances where the equal division of the appropriated funds between need-based grants and the Palmetto Fellows Program exceeds the capacity to make awards in either program, the Commission on Higher Education has the authority to reallocate the remaining funds between the two programs. Public and independent higher education institutions must give first priority for need-based grants to children and young adults in the custody of the State Department of Social Services. Institutions and the Commission on Higher Education shall accept written verification from DSS that the child or young adult is in the custody of DSS, and must provide the maximum amount allowed by law for that need-based grant.

5A.13.   (CHE: Sister-State Fee Waiver) Beginning July 1, 1998, State-supported colleges and universities, including the technical colleges, may waive the nonresident portion of tuition and fees for those students who are participating in international Sister-State agreement programs which the Governor and the General Assembly have entered to promote the economic development of South Carolina. The nonresident fee waiver for the students is applicable only for those Sister-State agreements where South Carolina students receive reciprocal consideration. The Commission on Higher Education, through coordination with the Budget and Control Board, will annually notify institutions of the Sister-State Agreements eligible for the nonresident fee waiver. The credit hours generated by these students shall be included in the Mission Resource Requirement for funding.

5A.14.   (CHE: College Attendance) Employees of public colleges and universities and technical colleges may attend classes at an institution of higher learning and receive tuition assistance in accordance with Budget and Control Board guidelines and regulations.

5A.15.   (CHE: Pharmacist Permits) College and University Athletic Department's shall be exempted from the requirements of Section 40-43-83 of the 1976 Code of Laws, as amended, as it relates to the requirement that all facilities distributing or dispensing prescription drugs must be permitted by the Board of Pharmacy and the requirement that each pharmacy shall have a pharmacist-in-charge. Further, the department shall be exempted from the requirements of Section 40-43-86 of the 1976 Code of Laws, as amended as it relates to the


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requirement that a pharmacist may not serve as a pharmacist-in-charge unless he is physically present in the pharmacy and the requirement that a pharmacist may not serve as pharmacist-in-charge for more than one pharmacy at a time. Physicians who are in charge or who directly supervise the operation of College and University Athletics Department training rooms may dispense prescription drugs owned by the facility in order to meet the needs of student-athletes participating in Athletics Department activities or programs. Records of drugs dispensed must be maintained and properly accounted for by the Athletics Department physician. A valid physician-patient relationship shall exist between the Athletics Department physician and the student-athlete before dispensing prescription drugs in the Athletics Department training room. Drugs dispensed by the Athletics Department physician must be properly labeled in accordance with federal and state law.

5A.18.   (CHE: LIFE Scholarship for Two-Year Independent Institutions) Beginning with school year 2001-2002, eligible resident students attending two-year independent institutions may not receive an annual LIFE Scholarship of more than the maximum cost of tuition at two-year regional public institutions for thirty credit hours a year or its equivalent.

5A.27.   (CHE: Research Universities Matching Resources) Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50 of the 1976 Code, to meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided for below that are derived from private, federal, municipal, county, or local government sources, excluding state appropriations to the institution, tuition or fees. Subject to the restrictions below and outlined herein, only federal dollars received during the current fiscal year may be used to meet the endowed professorships matching requirement. Provided further, that such matching funds may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other such sciences and research that create well-paying jobs and enhanced economic opportunities for the people of South Carolina and that are approved by the Research Excellence Centers of Review Board.

5A.28.   (CHE: Lottery Technology Funds) Of the funds appropriated from the Education Lottery for technology, one-half must be used for a University Technology Program and awarded to public four-year universities, excluding the University of South Carolina-Columbia,


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Clemson University, and the Medical University of South Carolina. Funds must be awarded to these institutions according to the following formula: thirty-five percent of available dollars must be allocated equally among eligible institutions, with the remaining sixty-five percent to be prorated among the eligible institutions based on total FTE enrollment in the immediately previous year. The remaining one-half of these funds appropriated for technology shall be Technology Program funds to be used for technology upgrades across the public two-year institutions and the technical college system for the support and development of technology. Notwithstanding any other provision of law, prior approval or involvement of the Commission on Higher Education beyond allocation of funds as described herein is not required.

5A.29.   (CHE: International Exchange Program Abatement) State supported colleges and universities which have an established and ongoing relationship in one or more degree programs with an international institution, the terms of which have been formally approved by the institution's Board of Trustees, and the relationship includes regular arrangements for the enrollment of qualified students and/or the exchange of faculty between the institutions, although not necessarily in equal exchange numbers, may charge tuition to such qualified students at the South Carolina resident rate.

5A.30.   (CHE: Antenna and Tower Placement) Notwithstanding any other provision of law, all leases for antenna and tower operations within institutions of higher learning campuses must conform to the present and any future master plans for such property, as determined solely by the institution of higher learning.

SECTION 5D - CLEMSON UNIVERSITY (H12)

SECTION 5J - SOUTH CAROLINA STATE UNIVERSITY (H24)

5J.1.   (SCSU: Study Committee) There is created a study committee to assess the sustainable needs of South Carolina State University. The committee shall include, but is not limited to, the examination of funding, the amount of deferred maintenance needs, and the future needs of the institution and its community. The committee shall be comprised of three members appointed by the Governor, three members appointed by the Speaker of the House, and three members appointed by the President Pro Tempore of the Senate. Two of The Governor's appointees shall represent the South Carolina State University community, including one member from the institution's alumni association. Of the House appointees, one member shall be from the Ways and Means Committee and one member from the


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Education and Public Works Committee. Of the Senate appointees, one member shall be from the Senate Finance Committee and one member from the Senate Education Committee. A report shall be provided to the General Assembly by January 2, 2003 2004. Upon submission of the report, the committee shall be dissolved.

SECTION 6 - EDUCATIONAL TELEVISION COMMISSION (H67)

6.2.   (ETV: School Reception Equipment Purchase) Of the funds appropriated to ETV for School Services, $166,713 must be used exclusively for school reception equipment supplies and maintenance.

6.3.   (ETV: New Facility Equipment Purchases & Renovations) Notwithstanding any other provisions of law, the commission, with approval by the Budget and Control Board, is allowed to sell or lease its facilities, property, equipment, programs, publications, and other program related materials, and funds received therefrom may be used for equipment purchases and renovations of the new facility its facilities upon review by the Joint Bond Review Committee and approval by the Budget and Control Board.

SECTION 7 - DEPARTMENT OF VOCATIONAL REHABILITATION (H73)

7.1.   (VR: Production Contracts Revenue) All revenues derived from production contracts earned by the handicapped trainees of the Evaluation and Training Facilities (Workshops) may be retained by the State Agency of Vocational Rehabilitation and used in the facilities for Client Wages and any other production costs; and further, any excess funds derived from these production contracts may be used for other operating expenses and/or permanent improvements of these facilities. The department must transfer $1,486,858 to the General Fund of the State during the current fiscal year.

7.7.   (VR: Client Services) The Vocational Rehabilitation Department and the Commission for the Blind are directed to work together to identify opportunities to better coordinate and refer eligible clients for services available from either agency. The two agencies shall jointly submit a report to the Chairmen of the House Ways and Means Committee and the Senate Finance Committee by December 2002 on the progress of the two agencies in improving client access to all services for which they are eligible.

7.8.   (VR: Sale of Real Property with Improvements) Notwithstanding any other provision of law, with approval by the Budget and Control Board, the Department of Vocational Rehabilitation may sell its 0.4067 acres of real property with


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improvements thereon in Hartsville, S.C., and retain the receipts in permanent improvements accounts for current or future capital projects upon review by the Joint Bond Review Committee and approval by the Budget and Control Board.

SECTION 8 - DEPARTMENT OF HEALTH AND HUMAN Services (J02)

8.13.   (DHHS: Community Residential Care Optional State Supplementation) The increase to Personal Needs Allowance for residents of community residential care facilities, if the federal government grants a cost of living increase to Social Security and Supplemental Security Income recipients, will be effective in January. The department will increase the residential care payment by the amount of the cost of living increase minus $2.00 per recipient for an increase in the Personal Needs Allowance. This increase to the Personal Needs Allowance applies to all OSS recipients regardless of whether they receive Social Security and/or Supplemental Security Income. The maximum amount of payment a facility can charge will be increased by the same amount as the cost of living increase, less $2.00. The department is authorized to maximize a portion of the OSS funds to implement the Integrated Personal Care program for eligible residents of community residential care facilities that receive OSS payments.

8.17.   (DHHS: Division on Aging Transfer) Notwithstanding any other provision of law, the duties, functions and responsibilities of the Division on Aging in the Office of the Governor are transferred to the Department of Health and Human Services as the Office on Aging. The director of the department must employ a deputy director to be the administrator for the office.

8.20.   (DHHS: Medically Fragile Children's Programs) Children's Hospitals in South Carolina or their designee are authorized to be the only providers for the State of South Carolina for the Medically Fragile Children's Programs as defined by the Department of Health and Human Services.

8.21.   (DHHS: Rehabilitative Therapy Services Fund) There is established the Rehabilitative Therapy Services Fund for the payment to private providers for Medicaid eligible children. The services include physical, occupational and speech therapies, as well as audiological services that are provided by private providers to Medicaid eligible children. The Fund consists of state matching funds provided by the Department of Health and Human Services, the Department of Health and Environmental Control, the Department of Education, and


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the Department of Disabilities and Special Needs as provided in Fiscal Year 2000-01, based on Medicaid expenditures to private providers and direct service staff of Rehabilitative Therapy Services for that fiscal year. If additional funds are required, each agency's share of the additional funds will be determined in accordance with authorized by a methodology to be designed and agreed upon by the agency directors.

8.22.   (DHHS: DAODAS Prior Authorization Program) The Department of Health & Human Services is to continue to provide state matching funds up to $200,000 for the support of the Department of Alcohol and Other Drug Abuse Services (DAODAS) prior authorization program for alcohol and drug abuse services for FY 2000. Prior to receiving subsequent year funding, DAODAS must provide documentation that the system is cost effective and supportive of a continuum of services that will increase the linkage between inpatient services and necessary follow-up services in the DAODAS system that improve client outcomes.

8.27.   (DHHS: Medicaid Growth) The Department of Health and Human Services shall initiate a study with other state agencies that use Medicaid funds to examine ways to slow down the growth in Medicaid expenditures. A report on this study shall be submitted to the Governor, the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee by the beginning of the 2003 Legislative Session.

8.32.   (DHHS: Psychological Services for Children) The Department of Health and Human Services shall suspend restrictions placed on reimbursements for counseling and mental health programs as a result of the Medicaid Bulletin issued on October 31, 2001 and as further clarified on November 30, 2001.

8.33.   (DHHS: Medicaid Balanced Budget) It is the intent of the General Assembly for the department to take the following initiatives: School Districts - The department shall withhold and retain up to $20,000,000 in increased revenue earned by school districts in the prior fiscal year and through June 30, 2003, as a result of rate changes and/or activation of Medicaid payment for new services. The Department of Education (SDE) and school districts shall aggressively pursue Medicaid reimbursement including administrative claiming and transportation services. Medicaid Coverage - The department must submit an application for a waiver to increase the agency's discretion in administering the program including the use of premiums, deductibles, and co-pays by persons earning more than $30,000. The purpose of the waiver is to allow the agency to adjust eligibility standards. The waiver


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should be used to lower the costs of providing service to current higher income recipients. Eligibility Determination Integrity Measures- DHHS must improve the accuracy and integrity of the eligibility determination program. DHHS shall institute a program to more closely scrutinize eligibility workers out stationed in provider offices. The eligibility determination measures must include, but are not limited to documented proof of citizenship or legal alien status is required; re-application; termination of enrollees who have provided false information; an annual report to the General Assembly regarding the implementation of the above measures. In addition, the department must develop, publish and implement a plan for improving the eligibility determination process by October 30, 2002. The plan must address: a) auditing and testing measures that are statistically valid; b) recommendations for streamlining the eligibility process; c) automation for efficiency and cost-savings; d) on-line cross checks with IRS, SSA and state wage databases; e) verification of employer sponsored insurance; f) termination of eligibility of employee who fail to provide truthful information; g) annual reporting to the General Assembly of applicants, enrollment, utilization, and the statistically valid auditing of the determination program.

8.34.   (DHHS: Prescription Reimbursement Payment Methodology) The two dollar and five cents reduction in the prescription reimbursement payment methodology provided in item II of Medicaid Bulletin Pharm 01-06, published by the Department of Health and Human Services on November 7, 2001, is suspended effective with reimbursements paid for Medicaid prescriptions filled on and after July 1, 2002.

8.36.   (DHHS: Computer Analysis) The Department of Health and Human services shall cooperate and provide the necessary information in order that a computer analysis may be performed to identify areas where the Medicaid program could increase quality and reduce overall program costs. The analysis shall proceed upon the approval of the President Pro Tempore of the Senate, the Chairman of the Senate Finance Committee, the Speaker of the House, and the Chairman of the House Ways and Means Committee. The results of the analysis shall be provided to the Senate Finance Committee and the House Ways and Means Committee upon its completion. No General Funds may be expended for this study.

8.39.   (DHHS: Medicaid Cost Savings Suggestion Award Program) The department shall develop policies and procedures for a Medicaid Cost Savings Suggestion Award Program. The department shall


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establish an in-house committee to administer the program. Employees of the department are not eligible for cash awards. The department is authorized to provide cash or honorary awards to employees of Medicaid providers whose suggestion is adopted by the committee that will result in savings of state or federal dollars. The department is authorized to fund this program from revenue from third party liability collections. The maximum amount of funds that may be used annually for the program is $20,000. No award may be given until the cost savings has been recognized by the department. Prior to implementation of the program, the department must first obtain approval of the Budget and Control Board.

8.40.   (DHHS: Medication Exemptions) There shall be no prior authorization or any other prescriptive restrictions on medications prescribed to treat schizophrenia, major depression, or bipolar disorder as defined by the most recent edition of the Diagnostics and Statistical Manual of the American Psychiatry Association, or hemophilia and HIV.

8.45.   (DHHS: Pharmacy and Therapeutics Committee) There is established within the department the Pharmacy and Therapeutics Committee. The committee must consist of fifteen members appointed by the director and serving at his pleasure. The members must include eleven physicians licensed and actively engaged in the practice of medicine in this State and who actively treat Medicaid patients. The physicians must include doctors who have experience in treating diabetes, cancer, HIV/AIDS, mental illness, and hemophilia and who practice in internal medicine, primary care, and pediatrics. The members must also include four pharmacists licensed in this State and actively engaged in the practice of pharmacy. A vacancy on the committee must be filled in the same manner as original appointment. Committee members must elect a chairman and a vice chairman from the committee membership. Committee members must not receive any compensation but may receive mileage reimbursement. The committee must meet at least quarterly and may meet at other times at the discretion of the chairman or the director of the department. The department must publish notice of any meeting at least thirty days before the meeting. Committee meetings are subject to, and must comply with, the provisions of the Freedom of Information Act and the Administrative Procedures Act. The committee must provide for public comment, including comment on clinical and patient care data from Medicaid providers, representatives of the pharmaceutical industry, and patient advocacy groups. Proprietary information as defined in


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the trade secret law shall not be discussed. The committee must recommend to the department: therapeutic classes of drugs that should be subject to enhanced prior approval program requirements; guidelines to determine whether a drug is subject to enhanced prior approval to include clinical effectiveness, physician impact, hospital and other costs, and safety profile; and specific drugs within each therapeutic class to be subject to enhanced prior approval. The department must adhere to the following provisions when implementing an enhanced prior approval program. The enhanced prior approval program must include coverage of drugs from every therapeutic chemical class in which the FDA has approved at least one drug. When the FDA has approved more than one drug in a therapeutic chemical class, the enhanced prior approval program may offer multiple choices of pharmaceuticals or biological entities within that class. Any enhanced prior approval decisions must be made within twenty-four hours. The prescribing physician must receive notice of any delays or negative decisions and have access to an expedited review of denials by the department. Any denial must include an explanation in terms that apply to specific patient's situation and are easily comprehensible. The department must develop a grievance mechanism for the patient or the patient's provider to appeal a denial of access to a drug in the Medicaid program, including an administrative hearing before the department.

8.46.   (DHHS:CHIP Eligibility) Eligibility for the coverage under the State Children's Health Insurance Program is to be established on criteria based on 200% above the federal poverty level.

SECTION 9 - DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL (J04)

9.1.   (DHEC: County Health Departments Funding) Out of the appropriation provided in this section for "Public Health Districts" "Access to Care", the sum of $25,000 shall be distributed to the county health departments by the commissioner, with the approval of the Board of Department of Health and Environmental Control, for the following purposes:

1.   To insure the provision of a reasonably adequate public health program in each county.

2.   To provide funds to combat special health problems that may exist in certain counties.

3.   To establish and maintain demonstration projects in improved public health methods in one or more counties in the promotion of better public health service throughout the State.


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4.   To encourage and promote local participation in financial support of the county health departments.

5.   To meet emergency situations which may arise in local areas.

6.   To fit funds available to amounts budgeted when small differences occur.

The provisions of this proviso shall not supersede or suspend the provisions of Section 13-7-30 of the 1976 Code.

9.3.   (DHEC: County Health Units) Federal funds made available to the Department of Health and Environmental Control for the allocation to the counties of the State for operation of county health units be allotted on a basis approved by the Board of the Department of Health and Environmental Control and the amount of state funds appropriated herein for "Public Health Districts" Access to Care, except for salary increases, shall be allocated on a basis such that no county budget shall receive less than the amount received in the prior fiscal year.

9.6.   (DHEC: Cancer/Hemophilia) Notwithstanding any other provisions of this act, the funds appropriated herein for prevention, detection and surveillance of cancer as well as providing for cancer treatment services $1,168,409 $1,118,789 and the hemophilia assistance program, $566,477 $539,898 shall not be transferred to other programs within the agency and when instructed by the Budget and Control Board or the General Assembly to reduce funds within the department by a certain percentage, the department may not act unilaterally to reduce the funds for any cancer treatment program and hemophilia assistance program provided for herein greater than such stipulated percentage.

9.9.   (DHEC: Insurance Refunds) The Department of Health and Environmental Control is authorized to budget and expend monies resulting from insurance refunds for prior year operations for case services in the following programs: Health Promotion, Preventive Health Services, and Maternal and Child Care in family health.

9.10.   (DHEC: Emergency Medical Services) Funds appropriated herein for Emergency Medical Services, shall be allocated for the purpose of improving and upgrading the EMS system throughout the state. The monies allocated to the Counties are for the purpose of improving or upgrading the local EMS system through the licensed ambulance services, the monies allocated to the EMS Regional Councils are for the administration of training programs and technical assistance to local EMS organizations and county systems. All additional funds are to be allocated as follows: to the counties at the ratio of 81% of the additional funds appropriated herein, to the EMS


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Regions at a ratio of 12% of the additional funds appropriated herein and to the state EMS Office at the ratio of 7% of the additional funds appropriated herein. The Department of Health and Environmental Control shall develop criteria and guidelines and administer the system to make allocations to each region and county within the state, based on demonstrated need and local match. Funds appropriated, $2,555,195 $2,302,018, to Emergency Medical Services shall not be transferred to other programs within the department's budget. In addition, when instructed by the Budget and Control Board or the General Assembly to reduce funds by a certain percentage, the department may not reduce the funds appropriated for EMS Regional Councils or Aid to Counties greater than such stipulated percentage.

9.11.   (DHEC: Rape Crisis Centers Violence Prevention - Abstinence Education Contract #00-S1808-A2781) Of the amounts appropriated in Primary Care-Case Services Rape Violence Prevention, $651,107 $642,430 shall be used for rape crisis centers around the state, and of the amounts appropriated under the provisions of Title V, Section 510 and funded with federal and state matching funds supplied by the Department of Health and Environmental Control and by the Department of Social Services in the preceding fiscal year, the whole amount shall be used for primary prevention services and must continue to be under contract at the same funding level, for the same purposes with the agency under contract with the State of South Carolina as of December 2000 for the current fiscal year. Distribution of the $651,107 $642,430 must be based on the Department of Health and Environmental Control Rape Crisis Violence Prevention services standards and expenditures and monitored by the Department of Health and Environmental Control, and the Abstinence Education contract must be governed by the congressional Title V, Section 510 legislative definition.

9.12.   (DHEC: Sickle Cell Blood Sample Analysis) $16,000 is appropriated in Maternal and Child Care Independent Living for the Sickle Cell Program for Blood Sample Analysis and shall be used by the department to analyze blood samples submitted by the four existing regional programs - Region I, Barksdale Sickle Cell Anemia Foundation in Spartanburg; Region II, Clark Sickle Cell Anemia Foundation in Columbia; Region III, Committee on Better Racial Assurance Hemoglobinopathy Program in Charleston; and the Orangeburg Area Sickle Cell Anemia Foundation.


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9.13.   (DHEC: Sickle Cell Programs) $1,375,000 $1,320,000 is appropriated for Sickle Cell program services and shall be apportioned as follows:

(1)   67% is to be divided equitably between the existing Community Based Sickle Cell Programs located in Spartanburg, Columbia, Orangeburg, and Charleston; and

(2)   33% is for the Community Based Sickle Cell Program at DHEC.

The funds shall be used for providing prevention programs, educational programs, testing, counseling and newborn screening. The balance of the total appropriation must be used for Sickle Cell Services operated by Children's Rehabilitative Services the Independent Living program of DHEC. The funds appropriated to the community based sickle cell centers shall be reduced to reflect any percent reduction assigned to the Department of Health and Environmental Control by the Budget and Control Board; provided, however, that the department may not act unilaterally to reduce the funds for the Sickle Cell program greater than such stipulated percentage. The department shall not be required to undertake any treatment, medical management or health care follow-up for any person with sickle cell disease identified through any neonatal testing program, beyond the level of services supported by funds now or subsequently appropriated for such services. No funds appropriated for ongoing or newly established sickle cell services may be diverted to other budget categories within the DHEC budget.

9.14.   (DHEC: Genetic Services) The sum of $222,390 $213,494 appearing under the Maternal and Child Care Section Independent Living program of this Act shall be appropriated to and administered by the Department of Health and Environmental Control for the purpose of providing appropriate genetic services to medically needy and underserved persons. Such funds shall be used by the department to administer the program and to contract with appropriate providers of genetic services. Such services will include genetic screening, laboratory testing, counseling, and other services as may be deemed beneficial by the department, and these funds shall be divided equally among the three Regional Genetic Centers of South Carolina, composed of units from the Medical University of South Carolina, the University of South Carolina School of Medicine, and the Greenwood Genetic Center.

9.15.   (DHEC: Revenue Carry Forward Authorization) The Department of Health & Environmental Control is hereby authorized to collect, expend, and carry forward revenues in the following programs:


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Sale of Goods (confiscated goods, arm patches, etc.), sale of meals at Camp Burnt Gin, sale of publications, brochures, photo copies and certificate forms, including but not limited to, pet rabies vaccination certificate books, sale of listings and labels, sale of State Code and Supplements, sale of films and slides, sale of maps, sale of items to be recycled, including, but not limited to, used motor oil and batteries, etc., sale and/or licensing of software products developed and owned by the Department, and collection of registration fees for non-DHEC employees.

9.25.   (DHEC: Special Permits) Notwithstanding any other provisions of law or Rule and Regulation where the State of South Carolina is exposed to compensation requirements of the Constitutions, the department is hereby authorized to issue special permits pursuant to Section 48-39-290(D) for habitable structures not to be larger than 5,000 square feet of heated space.

9.26.   (DHEC: Permit Application) Permit Application fees collected pursuant to Section 48-39-145 of the 1976 Code must be retained by the department and used to both establish the Coastal Resources Access Fund to be administered by the Office of Ocean and Coastal Resource Management, and to offset the administrative costs of the permitting program. The office shall make matching grants from the Coastal Resources Access fund on a 50/50 basis to local governments in the South Carolina Coastal Zone for projects which enhance the public's use and enjoyment of coastal resources.

9.33.   (DHEC: MCH-Abstinence Education Contract) The agency under contract with the State of South Carolina as of December 2000, and funded with federal and state matching funds under the provisions of Title V, Section 510, must continue to be under contract at the same funding level, for the same purposes for the current fiscal year.

9.37.   (DHEC: Health Disparities Study) The Department of Health and Environmental Control will provide leadership in the implementation of the State Health Improvement Plan with specific goals similar to the national Healthy People 2010 goals and targeting health disparities among our state's minority population. The Plan will address the areas of diabetes, cardiovascular disease, stroke, cancer, and HIV/AIDS, infant mortality and childhood/adult immunizations. Working with public and private health care institutions, state agencies and providers, DHEC will provide leadership in the coordination of services, elimination of duplication and coordination of federal and state funding.


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9.38.   (DHEC: Use of Radiological Fees) Notwithstanding Section 13-7-85 of the 1976 Code of Laws, the Department of Health and Environmental Control is authorized to retain all funds generated above monies remitted to the general fund in FY 2000-2001 from increases in fees listed in regulation R61-64 Title B (X-Rays) effective May 9, 2001.

9.40.   (DHEC: Catawba River and Waccamaw Rivers Study) From funds appropriated in Part IA, Section 9 of this act, the director of the department shall provide for expenses so that the department must enter into discussions with the Secretary of the North Carolina Department of Environment and Natural Resources regarding water quality and quantity of the Catawba River and Waccamaw Rivers and the impacts of all discharges made into the river rivers and removal of water from the river rivers in both the State of South Carolina and the State of North Carolina. Pending the results of the study, the department must not issue a permit for the siting of a new waste water treatment plant that will discharge into the Catawba River and Waccamaw River until June 30, 2003 2004 or until the final results of the study are published, whichever occurs first. The study will allow for input from stakeholders representing each county along the watershed of the Catawba River and Waccamaw River System Systems.

9.41.   (DHEC: Administrative Fee - Alter Critical Area Application) The administrative fee authorized by Section 48-39-145 of the 1976 Code associated with the application for a permit for alteration of a critical area, as defined in Section 48-39-10, shall be $250 for non-commercial activities. The department may raise or lower the fee by regulation after complying with the requirements of the Administrative Procedures Act. If an applicant is unable to pay the administrative fee because of hardship, the applicant shall submit a notarized affidavit to such effect. If after reviewing the affidavit the department determines that such hardship exists, the administrative fee shall be waived.

9.42.   (DHEC: Use of Funds) Notwithstanding any other provision of law, for the fiscal year beginning July 1, 2002 and ending June 30, 2003, the department may transfer to the agency general operating budget up to $4,000,000 from funds authorized under the following sections of the South Carolina Code of Laws, 1976, as amended: Section 44-56-170 (F) (1), Hazardous Waste Fund; Sections 44-96-176 (L), 44-96-170 (P), 44-96-170 (R) Waste Tire Fund; and Sections 44-96-180 (W) (1), 44-96-160 (W) (2) Petroleum Fund. Of these funds, $2,000,000 must be used for the Youth Smoking Prevention and


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Cessation Program. Any restrictions concerning specific utilization of these funds are lifted for the specified fiscal year.

SECTION 10 - DEPARTMENT OF MENTAL HEALTH (J12)

10.9.   (DMH: Project COPE Models) With $390,000 increased appropriations provided for FY 2000, the department shall use $195,000 each to establish two new programs modeled after Project COPE for family assistance, education and additional respite services for Alzheimers clients. For the current fiscal year, the department must provide funding for Alzheimers programs in an amount not less than in the prior fiscal year.

10.10.   (DMH: Huntington's Disease) Of funds appropriated, the Department of Mental Health shall designate $150,000 for administrative and personnel costs for Huntington's Disease clinical services within the Department of Mental Health.

SECTION 11 - DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS (J16)

11.2.   (DDSN: Sale of Excess Real Property) The department is authorized to retain revenues associated with the sale of excess department-owned real property owned by, under the control of, or assigned to the department and may expend these funds as grants to purchase or build community residences and day program facilities for the individuals DDSN serves. The department shall follow all the policies and procedures of the Budget and Control Board and the Joint Bond Review Committee.

11.9.   (DDSN: Program for Exceptional People) The Department of Disabilities and Special Needs shall contract for services with the Program for Exceptional People of Beaufort County for job training for $50,000 during the current fiscal year.

SECTION 13 - DEPARTMENT OF SOCIAL SERVICES (L04)

13.26.   (DSS: Safe Haven) Of $600,000 allocated to Heritage Community Services in DSS's budget, up to $15,000 will may be used to help publicize the Safe Haven for Abandoned Baby Law. Further, a Citizen's Advisory Committee will be convened no later than September 1, 2002 to review child abandonment issues and make recommendations to the General Assembly by January 15, 2003. The Speaker of the House, the President Pro Tem of the Senate, and the Governor each will appoint two members to the Committee. Once the report is completed and submitted to the General Assembly, the Committee is disbanded.

13.27.   (DSS: Integrated Children's Services Program-ICSP) There is established within the Department of Social Services a division titled


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the "Integrated Children's Services Program (ICSP)." The purpose of this program is to improve children's access to appropriate services, including those with emotional, developmental and physical disabilities while providing better statewide oversight, and prudent use of resources. The board shall consider the best practice standards for services to children in state custody or whom this division otherwise serves.

The ICSP shall be comprised of the following entities: Continuum of Care, Managed Treatment Services, and the Interagency System of Caring for Emotionally Disturbed Children. The state office must centrally administer programs provided under the current Continuum of Care Division and Managed Treatment Services Division.

The Continuum of Care shall continue to provide the services and duties as set forth in Section 20-7-5670 et. seq., for children who are not in the custody of the State.

Funding appropriated to the Continuum of Care shall not be transferred to other programs within the department's budget. In addition, when instructed by the Budget and Control Board or the General Assembly to reduce funds by a certain percentage, the department may not reduce the funds appropriated for the Continuum of Care greater than such stipulated percentage.

SECTION 14 - COMMISSION FOR THE BLIND (L24)

14.3.   (BLIND: Use of Funds) The Commission for Blind is authorized to use unrestricted funds donated to the agency and any surplus state appropriations, to clear old negative grant balances that have been reflected in its accounts prior to 1991.

14.4.   (BLIND: Client Services) The Commission for the Blind and the Vocational Rehabilitation Department are directed to work together to identify opportunities to better coordinate and refer eligible clients for services available from either agency. The two agencies shall jointly submit a report to the Chairmen of the House Ways and Means Committee and the Senate Finance Committee by December 2002 on the progress of the two agencies in improving client access to all services for which they are eligible.

SECTION 15 - DEPARTMENT OF ARCHIVES AND HISTORY (H79)

15.3.   (AH: Disposal of Materials) Upon prior approval of the commission, the agency may remove certain record and nonrecord materials from its collections by gift to another public or nonprofit institution or by sale at public auction. This is a supplemental form of disposition beyond that recognized in the Public Records Act for the


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retention, copying, and destruction of public records; and it pertains only to those accessioned archives materials having a market value and which duplicate existing archival material, fall outside the scope of the archives collection policy, or have no further possible research value. All funds realized through sale by public auction shall be placed in a special account to be used for improved access to and preservation of the state archives collections. The commission shall report annually to the Budget and Control Board regarding such dispositions.

SECTION 21 - FORESTRY COMMISSION (P12)

21.5.   (FC: Retention of Revenue) In Fiscal Year 02-03, all funds generated from the sale of forest products, land rentals, and other privileges on State Forestry Commission lands shall be retained by the commission, up to the amount of the agency's General Fund reduction.

21.6.   (FC: Personnel Procedures) Notwithstanding any other provision of law, and in an effort to better manage human resources statewide, the hiring, retention, and dismissal of all employees of the Forestry Commission, who are covered by the State Employee Grievance Procedure Act, will be at the direction of the agency director.

SECTION 22- DEPARTMENT OF AGRICULTURE (P16)

22.5.   (AGR1: Farmers Market Relocation) (A)   There is created a Farmers Market Relocation Oversight Committee to study and make recommendations to the General Assembly in connection with the establishment of a new Columbia State Farmers Market facility, including:

(1)   location and acquisition of a highly visible, easily accessible site of at least one hundred twenty acres of developable property in the Columbia Metropolitan Area;

(2)   procurement of funding to construct facilities at the new location; and

(3)   oversight of the planning and construction of the facilities at the new location.

(B)   The Farmers Market Relocation Oversight Committee is composed of the following ten members:

(1)   Commissioner of Agriculture;

(2)   appointee of the Secretary of Commerce;

(3)   two appointees of the Chairman of the Agriculture Commission;

(4)   two appointees of the Governor;

(5)   appointee of the President Pro Tempore of the Senate;

(6)   appointee of the Speaker of the House of Representatives;


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(7)   appointee of the Chairman of the Finance Committee of the Senate; and

(8)   appointee of the Chairman of the Ways and Means Committee of the House of Representatives.

(C)   The Farmers Market Relocation Oversight Committee shall elect a chairman and other necessary officers from its membership. The committee shall meet as often as necessary to discharge its duties before making its report to the General Assembly. Committee members are not allowed the usual mileage, per diem, and subsistence as provided by law for members of state boards, committees, and commissions.

(D)   The Farmers Market Relocation Oversight Committee shall submit its recommendations in a report to the General Assembly before January 1, 2003.

The initial meeting shall be called by the Speaker of the House of Representatives. The Governor's Office shall provide staffing for the Committee.

22.12.   (AGRI: Sale of Property Revenue) The department may retain revenues associated with the sale of the property titled to or utilized by the department, except for the State Farmers Market property, and must expend these funds on capital improvements approved by the Joint Bond Review Committee and the Budget and Control Board. The department must continue to occupy any property until replacement capital improvements are completed.

22.13.   (AGRI: Grain Dealers Guaranty Fund Loan Interest) During Fiscal Year 2003-2004, the interest rate required to be paid to the Insurance Reserve Fund in connection with its loan to the Grain Dealers Guaranty Fund under Section 46-40-50 shall be the average prime rate of the five largest banks in South Carolina by deposits and not the interest rate specified by Section 34-31-20(A).

22.14.   (AGRI: Farmers Market Revenue) The revenues associated with the sale of the State Farmers Market shall be deposited into a separate restricted special account under the authority of the Budget and Control Board. Interest accrued on this account must remain in this account. These funds may only be expended for relocating the State Farmers Market after approval by the Joint Bond Review Committee and the State Budget and Control Board.

SECTION 23 - CLEMSON UNIVERSITY-PSA (P20)

SECTION 24 - DEPARTMENT OF NATURAL RESOURCES (P24)


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24.15.   (DNR: Water Recreation Fund and County Game and Fish Fund) Funds collected during Fiscal Year 2002-2003 2003-2004 by the Department of Natural Resources for the Water Recreation Fund and for that portion of the county game and fish fund derived from licenses and fees must be retained by the department and used for the stated purposes of the respective funds, and may not be used by the department to offset base-budget reductions for Fiscal Year 2002-2003.

24.17.   (DNR: Failure to Pay Fines) Upon the issuance of a bench warrant by a court for a person convicted of a charge brought by the Department of Natural Resources who has failed to pay a fine or restitution, the department must suspend the hunting, fishing, and boating privileges and all licenses, permits, stamps, tags, and registrations issued to the individual. Upon payment of the fine or restitution the suspension for failure to pay shall end.

SECTION 25 - SEA GRANT CONSORTIUM (P26)

25.1.   (SGC: Publications Revenue) Funds generated by the sale of pamphlets, books, and other printed promotional materials, the production of which has been supported by non-state funding, may be deposited in a special account by the consortium and utilized as other funds for the purchase of additional pamphlets, books, and other printed promotional materials for distribution to the public.

SECTION 26 - DEPARTMENT OF PARKS, RECREATION AND TOURISM (P24)

26.2.   (PRT: Boyleston House Gift/Souvenir Shop Revenue) Any monies derived from the Gift/Souvenir Shop at the Boyleston House must be used for the continuing operation of same.

26.3.   (PRT: Publications Revenue) The department is authorized to charge a fee for the cost of vacation guides, research reports, educational conferences, technical planning assistance, technical drawings, and mailing lists. The fee shall offset the actual cost of producing or providing such items and revenue in an amount necessary to offset actual cost shall be retained in a restricted account. Any revenue generated above the actual cost shall be remitted to the General Fund of the State.

26.5.   (PRT: Recreation Land Trust Fund) The Department of Parks, Recreation and Tourism is authorized to retain any funds generated from the sale of state park property and to use these funds for the Recreation Land Trust Fund, which is a state funded grant program for the acquisition of land, land improvements, and infrastructure improvements for the purpose of public recreation.


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26.6.   (PRT: Hunley Lab Security) Funds appropriated pursuant to Part IB, Paragraph 72.111, Act 66 of 2001, the General Appropriations Act for Fiscal Year 2001-2002, to the Department of Parks, Recreation and Tourism for Hunley Lab HVAC may also be expended for lab security as the department determines appropriate.

26.7.   (PRT: Study Fee Structure) Notwithstanding Section 51-3-60, the Department of Parks, Recreation and Tourism is directed to study the current fee structure of the State Park System. If the study determines that adjustments are needed in order to maintain the fiscal soundness and continued maintenance and operations of the State Park System, the department shall notify the Senate Finance Committee and the House Ways and Means Committee prior to implementing adjustments to the fee structure.

26.8.   (PRT: PARD Prior Year Expenditures) The Department of Parks, Recreation and Tourism shall be authorized to expend restricted funds in the current fiscal year, for Parks and Recreation Development Fund (PARD) grant reimbursement payment expenditures incurred in the prior fiscal year.

SECTION 27 - DEPARTMENT OF COMMERCE (P32)

27.12.   (CMRC: Carry Forward Sale of Aircraft Proceeds) The Department of Commerce may carry forward proceeds from the sale of aircraft to be used for replacement aircraft and for required Federal Aviation Administration upgrades to existing aircraft.

27.18.   (CMRC: SC World Trade Center) Of funds appropriated in FY 02-03 to the department for the SEUS International Trade Show to be held in September 2002, $100,000 shall be transferred to the South Carolina World Trade Center.

SECTION 30 - JUDICIAL DEPARTMENT (B04)

30.12.   (JUD: Information Technology Carry Forward) Unexpended funds previously appropriated to the Judicial Department from the Capital Reserve Fund may be carried forward and expended for review and development of Judicial Department information technology.

30.16.   (JUD: Fee for Motions Made in Court of Common Pleas & Family Court) There is assessed for every motion made in the court of common pleas and family court a fee of twenty-five dollars. The fee must accompany each motion filed. The Supreme Court shall have authority to issue administrative rules to exempt from the motion fee certain Family Court matters involving rules to show cause in child and spousal support matters and motions filed by indigent persons. The revenue from this fee must be collected by the clerk of court in each court and remitted to the State Treasurer and credited to a separate


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Judicial Department Support Fund for the exclusive use of the Judicial Department in the following manner:

(1)   The first three hundred thousand dollars must be used to fund the alternative dispute resolution pilot program.

(2)   $1,000,000 of these funds must be used to fund drug courts in the judicial circuits.

(3)   The next $59,000 must be used for retired judges to help with the Judicial Department caseload.

(4)   Any funds remaining after the expenditure in item (3) of this paragraph must be used to restore reimbursement travel allowance for circuit judges so as to adhere to the constitutional requirement of the rotation of these judges provided in Article V, Section 14 of the Constitution of South Carolina, 1895. Any funds remaining after the expenditure in item (4) of this paragraph must be used to fund the technology initiatives program.

The Court may waive the filing fee imposed by this paragraph upon a proper showing of indigency.

30.17.   (JUD: General Operations) Judicial Department funding authorized in Part IV of the FY 99-00 Appropriation Act may be used for general operations of the department at the discretion of the Chief Justice.

30.18.   (JUD: Filing Fee) In addition to the fee set in Section 8-21-310, there is an additional fee of thirty dollars for the filing of a first complaint or petition, including application for a remedial and prerogative writ and bond on attachment or other bond, in a civil action or proceeding, in a court of record. The thirty dollar additional fee imposed by this item does not apply to the filing of an amended or supplemental complaint or petition nor for filing any other paper in the same action or proceeding. An original application for postconviction relief may be filed without this additional fee upon permission of the court to which the application is addressed. There is no additional fee for entering and filing a verdict, judgment, final decree, or order of dismissal, and enrolling a judgment thereon, for signing, sealing, and issuance of execution, or for entering satisfaction or partial satisfaction on a judgment.

The revenue from this additional fee must be remitted to the county in which the proceeding is instituted. Forty-four percent of these filing fee revenues must be deposited in the general fund of the county and fifty-six percent of these filing fees must be delivered to the county treasurer to be remitted monthly by the fifteenth day of each month to the State Treasurer. When a payment is made to the county in


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installments, the State's portion must be remitted to the State Treasurer by the county treasurer on a monthly basis. The State Treasurer shall deposit the additional state revenue from this fee in an account for the use of the South Carolina Judicial Department.

30.19.   (JUD: Handling Fee) In addition to the fee imposed in Section 20-7-1440(C), there is an additional fee of two percent imposed for handling payments for the support of spouses or dependent children, when paid through the court or through a centralized wage withholding system operated by the Department of Social Services and not directly. This additional handling fee must be paid by the party required to pay the support in addition to the support money paid. This additional handling fee applies only to payments that are initiated, pursuant to appropriate court order, after June 30, 2002. On-going payments that were initiated prior to July 1, 2002, will continue to have the three percent handling fee surcharge that was in effect prior to July 1, 2002.

The revenue from this additional fee must be remitted to the county in which the proceeding is instituted. Fifty-six percent of these filing fee revenues must be deposited in the general fund of the county and forty-four percent of these filing fee revenues must be delivered to the county treasurer to be remitted monthly by the fifteenth day of each month to the State Treasurer. When a payment is made to the county in installments, the State's portion must be remitted to the State Treasurer by the county treasurer on a monthly basis. The State Treasurer shall deposit the additional state revenue from this fee in an account for the use of the South Carolina Judicial Department.

SECTION 32 - ATTORNEY GENERAL'S OFFICE (E20)

32.7.   (AG: Prior Year Expenditures) The Office of the Attorney General is authorized to use unexpended federal funds in the current fiscal year to pay for expenditures incurred in the prior fiscal year.

SECTION 33 - PROSECUTION COORDINATION COMMISSION (E21)

33.3.   (PCC: Judicial Circuits State Support) The amount appropriated and authorized in this section for Judicial Circuits (16) State Support may, upon approval of the commission, be used to fund necessary administrative and personnel costs of the commission and other expenditures approved by the commission, not to exceed 5% of the appropriation, and the balance thereafter remaining shall be apportioned among the circuits on a per capita basis and based upon the official census of 2000. For Fiscal Year 2002-03, the amount appropriated for Judicial Circuits State Support shall be apportioned among the circuits on a per capita basis and based upon the official


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census of 1990. Any amount appropriated for "Judicial Circuits State Support" in excess of the FY 2001-02 adjusted appropriation must be distributed to only those circuits that would have received an increased pro rata share in FY 2002-03 if the appropriation would have been distributed based on the official census of 2000. Payment shall be made as soon after the beginning of the first and third quarter as practical. The funds shall be used for the operation of the solicitors' offices, and the solicitor may use a portion of those funds to provide for drug courts in their judicial circuits. Of the amount appropriated and authorized in this section, $48,000 may be used to fund a Child Victim/Witness Assistance Advocate.

SECTION 34 - OFFICE OF APPELLATE DEFENSE (E22)

34.1.   (OAD: Supplemental Carry Forward) The Office of Appellate Defense may utilize, for general operating expenses, any remaining funds appropriated in Part III, Item 21 of the 1998-99 General Appropriation Act.

SECTION 35 - COMMISSION ON INDIGENT DEFENSE (E23)

35.7.   (INDEF: County Contributions) Notwithstanding any other provision of law, for the Fiscal Year 2002-03 For the current fiscal year, in addition to amounts appropriated to the Commission on Indigent Defense for Defense of Indigents/Per Capita, no county shall reduce its contribution to the local Defender Corporation below the amount provided for such organization during FY 2000-01 in the prior fiscal year.

35.11.   (INDEF: Assessments Increase) The assessment paid pursuant to Sections 14-1-206, 14-1-207, or 14-1-208 by a person who is convicted of, pleads guilty or nolo contendere to, or forfeits bond for an offense tried in general sessions, magistrate's, or municipal court is increased from one hundred to one hundred seven and one-half percent of the fine imposed. The revenues generated by this increase of seven and one-half percent must be deposited in the General Fund of the State. From the total revenues generated by Sections 14-1-206, 14-1-207, and 14-1-208, and in addition to other uses prescribed by law, $3,200,000 shall be allocated to the following agencies for support of the programs specified: $500,000 to the Department of Juvenile Justice for the Juvenile Arbitration Program; $450,000 to the Department of Juvenile Justice for the Marine Institutes; $500,000 to the Department of Juvenile Justice for regional status offender programs, of which $106,000 must be allocated to the Anderson County Upstate Youth Camp; and $1,750,000 to the Office of Indigent Defense for use in offsetting budget cuts. It is the intent of the


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Legislature that the amount of the funds generated from this source and credited to the other State Agencies as provided by Sections 14-1-206, 14-1-207, or 14-1-208 shall not be less than the amounts credited to those agencies in the previous fiscal year. Counties and municipalities will not be permitted to retain funds used for supplemental audits as provided in Sections 14-1-206(E)(3), 14-1-207(E)(3), and 14-1-208(E)(3). These funds will instead be remitted to the State Treasurer. The State Treasurer shall reimburse the State Auditor's Office for actual expenses incurred in meeting the requirements of Section 11-7-25. If the State Auditor finds that any jurisdiction has failed to remit the state's portion of the assessments collected by the jurisdiction, the State Auditor will notify the chief administrator of the county or municipality and the State Treasurer. The State Treasurer is directed to withhold the jurisdiction's aid to subdivisions funding in an amount equal to the amount determined by the State Auditor to be the state's portion if payment is not made by the jurisdiction within ninety days of the audit notification. The governing body of the county or municipality may reduce the funding for the operations of the officer charged with remitting these assessments to the State Treasurer in an amount equal to any amount withheld pursuant to this paragraph. The Chief Justice and the Director of the Office of County Administration shall ensure that all judicial officers enforce the provisions of this paragraph.

SECTION 36 - DEPARTMENT OF PUBLIC SAFETY (K05)

36.2.   (DPS: Miscellaneous Revenue) Notwithstanding any other provisions of law, revenue received from the sale of meals to employees and students attending non-mandated, advanced, or specialized training courses, sale of student locks and materials, sale of legal manuals and other publications, postal reimbursement, third party commercial driver license testing, photo copying, sale of miscellaneous refuse and recyclable materials, insurance claim receipts, tuition from military breathalyzer non-mandated, advanced, or specialized courses, coin operated telephones, revenue from E-911 and Coroner training, revenue from psychological screening, private college tuition, and revenue from canteen operations and building management services, revenue from regional and national marketing of the "Crime-to-Court" and other Department of Public Safety and E.T.V. training series shall be retained by the department and expended in budgeted operations for food services, expansion of the department's E.T.V. program distance learning programs, professional training, fees and dues, clothing


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allowance, and other related services or programs as the Director of the Department of Public Safety may deem necessary.

The Department of Public Safety shall report annually to the General Assembly the amount of miscellaneous revenue retained and carried forward.

36.6.   (DPS: License Fees) Notwithstanding any provision of Title 56 of the 1976 Code relating to the disposition of revenues, all revenues derived under Title 56 credited to the Department of Public Safety must be credited to the General Fund of the State, except for those fees collected to recover the costs of the production, purchase, handling and mailing of documents, publications, records, and data sets, those fees collected under Sections 56-5-2951 and 56-1-286 for supplying and maintaining video cameras in law enforcement vehicles used for traffic enforcement and the issuance of the alcohol restricted license, those fees designated under Section 56-1-1320 to be used by the department to hire, train, and equip members of the highway patrol and state transport police, and the revenues of fees imposed pursuant to Sections 56-1-170, 56-1-286, 56-1-390, 56-1-740, 56-1-745, 56-1-746, 56-5-750, 56-5-2951, 56-9-430, 56-10-260, and 56-10-270, but only the revenues of that portion of these fees that represents increases in the rate of these fees over rates in effect June 30, 2001, to be used by the department to defray the expenses of the Division of Motor Vehicles.

36.23.   (DPS: DARE) Funds transferred to the Department of Public Safety from the Department of Revenue, that are related to the DARE tax return check-off, may be utilized by the Criminal Justice Academy for the purpose of DARE related training. Fund balances in this account may be carried forward into the current fiscal year and used for the same purpose. Notwithstanding Sections 44-53-830 and 44-53-880, the Department of Public Safety is authorized to receive, expend, retain, and carry forward any funds in DARE account sub-fund 3838 for the purpose of providing various DARE training in elementary, middle, and high schools and for DARE Parent Training, a community based initiative.

SECTION 37 - DEPARTMENT OF CORRECTIONS (N04)

37.23.   (CORR: Prison Industry Service Contracts) The Director of the Department of Corrections may enter into contracts with private sector entities that would allow for inmate labor to be provided for prison industry service work and work that involves exportation of products. The use of such inmate labor may not result in the displacement of employed workers within the local region in which work is being performed. Service work is defined as any work such as


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repair, replacement of original manufactured items, packaging, sorting, recycling, labeling, or similar work that is not original equipment manufacturing. Export work is defined as any work that results in a product that is exported for sale outside the United States that is not involved in interstate commerce. The department may negotiate the wage to be paid for inmate labor provided under this provision prison industry service work contracts, and such wages may be less than the prevailing wage for work of a similar nature in the private sector. The Director of the Department of Corrections, in consultation with the General Assembly, shall develop a plan to address the findings of the Legislative Audit Council with respect to prison industries and shall submit recommendations to the General Assembly by December 1, 2003.

37.27.   (CORR: Release of Inmates) The Director of the Department of Corrections and other persons having charge of prisoners who are required to serve a period of six months or more, shall release such prisoners on the first day of the month in which their sentences expire, and if the first day of the month falls on a Saturday, Sunday, or a legal holiday, such prisoners may be released on the last weekday prior to the first of the month which is not a holiday, Saturday or Sunday.

37.30.   (CORR: Layer/Pullet Processing Operation Expansion) Subject to the review of the Joint Bond Review Committee and approval of the Budget and Control Board, the Department of Corrections is authorized to borrow an amount not to exceed $1,800,000 for the purpose of constructing and equipping a Layer/Pullet Processing Operation to be located at its MacDougall Farm facility. The State Treasurer is authorized to negotiate the terms and conditions of a loan, revenue bond, or other financing arrangement, the indebtedness for which must be repaid exclusively from either net revenues derived from operations of the Layer/Pullet Processing Operation or other Department of Corrections funds.

37.31.   (CORR: Alternative Punishment) In an effort to reduce the caseload and expenses related to Al-Shabazz hearings performed by the Administrative Law Judge Division, the Department of Corrections is directed to review its internal policies and implement alternative punishments for violations currently punishable by loss of good time credits.

SECTION 38 - DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES (N08)


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38.1.   (DPPP: Hearing Fee) The Department of Probation, Parole and Pardon Services shall receive a hearing fee under a plan approved by the Budget and Control Board.

38.2.   (DPPP: Electronic Monitoring Fee Assessment) Every person placed on electronic monitoring shall be assessed a fee to be determined by the department in accordance with SC Code Section 24-21-80, so long as he remains in the electronic monitoring program. The payment of the fee must be a condition of supervision of any program administered by the department and a delinquency of two months or more in making payments may operate as a revocation. All fees generated by this assessment shall be retained by the department to support the electronic monitoring program and carried forward for the same purpose.

38.3.   (DPPP: DACOR Administrative Fee) The Department of Probation, Parole and Pardon Services is authorized to retain and expend collection fees authorized in Section 24-21-490(B) of the 1976 S.C. Code of Laws for the purpose of collecting and distributing restitution. All unexpended funds at year end may be retained and carried forward by the department to be used for the same purpose.

38.4.   (DPPP: Duty Clothing) The Department of Probation, Parole and Pardon Services is authorized to issue duty clothing for the use of department employees.

38.5.   (DPPP: Meals in Emergency Operations) Meals may be provided to state employees who are not permitted to leave duty stations and are required to work during deployments, actual emergencies, emergency simulation exercises, and when the Governor declares a state of emergency.

38.8.   (DPPP: Restitution Center Beds) Effective July 1, 2001, S.C. Code Section 17-25-324(C), which requires a minimum number of restitution center beds, is suspended until such time that appropriate funding is provided.

SECTION 39 - DEPARTMENT OF JUVENILE JUSTICE (N12)

39.7.   (DJJ: Juvenile Justice Parole Board Compensation) The department is authorized to pay the Juvenile Justice Parole Board member up to $200 per day for services rendered to the agency in the performance of their official duties. The total amount of agency funds which can be utilized in this manner cannot exceed $48,000 per year and is subject to base budget reductions.

39.8.   (DJJ: Beds for Females) The Department of Juvenile Justice may utilize any remaining funds originally authorized by Act 111 of 1997 for "Greenwood Facility Renovation" for the purpose of


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constructing additional beds for females or for any other capital improvement project at existing or new facilities.

39.11.   (DJJ: Video Cameras) Of the funds appropriated/authorized by this section, the department shall develop a plan to purchase and install video cameras to assist in the management of juveniles and reduce assault behavior between juveniles. This plan must be coordinated with court appointed monitors in the case of Alexander S. v. Wood.

39.13.   (DJJ: Sale of Real Property) After receiving approval from the Budget and Control Board for the sale of property, the department is authorized to retain revenues associated with the sale of department-owned real property and may expend these funds on capital improvements reviewed by the Joint Bond Review Committee and approved by the Budget and Control Board.

39.15.   (DJJ: Dorm Renovations) Upon review of the Joint Bond Review Committee and approval of the Budget and Control Board, the Department of Juvenile Justice may utilize any remaining funds originally authorized by Act 111 of 1997 for "Marine Institute Programs and Administration Building" and any remaining capital reserve funds originally authorized in the 1998 Appropriation Act for the "Willow Lane Chapel" for the purpose of renovating and upgrading existing facilities and/or wilderness camps.

39.17.   (DJJ: Good Behavior Incentive) A child committed to the Department of Juvenile Justice for a determinate period pursuant to Section 20-7-7810(F) may be released by the department prior to the expiration of the determinate period for "good behavior" as determined by the department, after having served at least two-thirds of the time ordered by the court. The court, in its discretion, may include language in the order indicating that the child is not to be released prior to the expiration of the determinate period ordered by the court.

39.18.   (DJJ: Drug Free Workplace) The critical mission of the Department of Juvenile Justice requires a safe and drug free work environment. In order to accomplish this, the department may conduct and pay for the cost of pre-employment drug testing and random employee drug testing. The department is authorized to expend funds in order to provide or procure these services.

SECTION 43 - R08 - WORKERS' COMPENSATION COMMISSION

SECTION 44 - STATE ACCIDENT FUND (R12)

44.2.   (SAF: Use of Fund) Unless the balance of the State Accident Fund should exceed the actuarial estimate of ultimate claim liability in


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three consecutive years, no funds of the State Accident Fund may be applied in any state appropriation bill for any purpose other than for funding workers' compensation claim obligations and operating expenses as provided in Section 42-7-90.

SECTION 49 - R28 - DEPARTMENT OF CONSUMER AFFAIRS

SECTION 50 - DEPARTMENT OF LABOR, LICENSING AND REGULATIONS (R36)

50.15.   (LLR: Match for Federal Funds) State appropriations to the Department of Labor, Licensing, and Regulation that are required to provide match for federal grant programs in the prior fiscal year may be carried forward into the current fiscal year and expended for the same purpose as originally appropriated.

SECTION 53 - DEPARTMENT OF TRANSPORTATION (U12)

53.10.   (DOT: Coordinate Transportation Funding and Resources) The Department of Transportation shall continue to carry out and enhance the coordination planning and demonstration process for public transportation funding and resources established during the prior fiscal year. Progress reports A progress report shall be submitted to the General Assembly at two intervals using the fiscal year--an interim progress report no later than January 15, 2003, and a follow-up report of progress and plans for the upcoming year no later than May 15, 2003 on or before January 15, 2004. Notwithstanding any other provision of law, the progress report required by this section may be combined with the Department of Transportation Annual Report required pursuant to Section 57-3-760 and the Mass Transit Division Report required by Section 57-3-40, Code of Laws, 1976, as amended. The intent of this proviso is to improve access and delivery of transportation services, especially in rural areas. In planning and developing mechanisms for increasing coordination of funding streams and resources at both the state and local levels, the Department of Transportation shall work with each agency that provides funding for transportation and assure input in the process from major local providers of transportation services to the public, including current providers of coordinated public service.

Any agency, local government or other entity, including nonprofit organizations, using state funds or state-administered federal funds for the purpose of transporting private citizens on a regular basis, 1) must provide input and information as requested by the Department of Transportation in a timely manner and in a format specified by the Department of Transportation in order to update data on transportation resources for planning purposes and; 2) show evidence of progress toward the development of or participation in a coordination plan. The


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Department of Corrections, the Department of Education, school districts and institutions of higher education are exempt from the requirements of this section. No transportation funds may be provided to any entity not in compliance with the requirements of this section.

53.14.   (DOT: Oversize and Overweight Permits) Notwithstanding any other provision of law, for Fiscal Year 2002-03 2003-04, the Department of Transportation may charge the following rates for Oversize and Overweight permits and licenses:

Single Trip               $30.00

Excessive Width Over 16'           $35.00

Excessive Width Over 18'           $40.00

Excessive Width Over 20'           $45.00

Excessive Width Over 22'           $50.00

Multiple Trip (Annual)             $100.00

House Moving License (Annual)           $100.00

Superload Application (Non-Refundable)         $100.00

Superload Engr Analysis Over 130,000 lbs.       $100.00

Superload Engr Analysis Over 200,000 lbs.       $200.00

Superload Engr Analysis Over 300,000 lbs.       $350.00

Superload Impact Fee for Loads Over 130,000 lbs.       $3.00/1,000 lbs.

Admin. Fee for Prorating Active Annual Permits       $10.00.

SECTION 53C - STATE PORTS AUTHORITY (Y14)

53C.1.   (SPA: Charleston Cooper River Bridge Project) During FY 2002-03 2003-04, the State Ports Authority shall, from other general fund or operating fund surplus available and any funds appropriated to the authority in prior fiscal years and left unexpended as of July 1, 2002 2003, pay five million dollars before July 15, 2003, the balance of sixteen million dollars which was due by June 30, 2003 to the State Transportation Infrastructure Bank and pay one million dollars before June 30, 2004 to continue the Charleston Cooper River Bridge Project.

SECTION 54 - LEGISLATIVE DEPARTMENT (A99)

54.2.   (LEG: House Employee Reimbursement) The Speaker of the House is authorized to reimburse travel and other expenses incurred by employees of the House of Representatives for official business in accord with current rules and regulations.

54.3.   (LEG: Approved Accounts Expenditure) The clerks of the two Houses and the Legislative Council are authorized to issue their warrants on Approved Accounts for necessary extra clerical or other services upon approval of the Speaker of the House or Lieutenant Governor, respectively.


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54.5.   (LEG: House Employees Salary Adjustments) Necessary temporary or permanent research assistants for the House of Representatives shall be paid from Approved Accounts of the House upon approval of the Speaker with the advice and consent of the Chairman of the standing committees. The Speaker may adjust salary levels of employees of the House, to be paid for from funds carried forward from the Research Assistant Accounts.

54.6.   (LEG: Interim Expenses Allowance) The Chairman of the Standing House and Senate Committees shall each be allowed the sum of six hundred and fifty dollars for expenses during the interim, between sessions of the General Assembly, to be paid from the House or Senate approved accounts, with each body paying the expense allowance of the chairman in its membership.

54.8.   (LEG: Expense/Compensation Vouchers) All vouchers for the payment of the expenses and/or compensation of committees of the General Assembly shall be prepared by the Clerks of the two Houses.

54.11.   (LEG: Telephone Service) The Clerks of the Senate and the House, with the approval of the Senate Operations and Management Committee and the Speaker of the House, respectively, shall cause to be installed such telephone service as may be appropriate for use of the membership and presiding officer of each legislative body.

54.12.   (LEG: Research Directors Appointment) The Speaker of the House shall appoint the Executive Director of Research. The Speaker, with the advice and consent of the individual committee chairman, shall appoint the Director of Research for each standing committee.

54.14.   (LEG: Sergeant-At-Arms & Director of Security Duties) The duties of the Sergeant-at-Arms and Director of Security of the respective Houses and/or Assistant Sergeant-at-Arms shall be those provided by the Code, the Rules of the respective Houses, those designated by the President Pro Tempore of the Senate or the Speaker of the House, the security of personnel and property of the respective Houses, and in addition the Sergeant-at-Arms and Director of Security of the respective Houses and/or Assistant Sergeant-at-Arms shall meet and escort visitors in and about their respective bodies and shall, during the hours of duty, be dressed in a distinctive manner so as to be easily identified as Sergeant-at-Arms and Director of Security of the respective Houses.

54.16.   (LEG: State House Renovation) Any improvements and additions to the State House must be recommended or approved by the State House Committee of the General Assembly, and that bidding, executing, and carrying out of contracts shall be in accord with


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standing regulations and procedures for any other work of the same type applicable to agencies and institutions of state government.

54.20.   (LEG: Legislative Carry Forward) In addition to the funds appropriated in this section, the funds appropriated under Sections 54A, 54B, 54C, and 54D, and 54E for the prior fiscal year which are not expended during that fiscal year may be carried forward to be expended for the same purposes in the current fiscal year.

54.22.   (LEG: Nurses) The State shall provide to the nurses pursuant to this section the same leave time and basic health and accident insurance coverage as is provided other state employees pursuant to law.

54.24.   (LEG: Copy of Act to Counties) Notwithstanding any other provision of law, the Clerk of the House is required to send only one copy of each Act to the Clerk of the Court of the various counties.

54.26.   (LEG: Additional House Support Personnel) The funds provided for Legislative/Constituent Services are appropriated for the purpose of providing additional support personnel to assist House members who are not already being furnished with direct legislative assistance in the conduct of their legislative responsibilities. This amount shall be used for staffing requirements where necessary for part time personnel. The additional personnel may be used only in compliance with 8-13-1346(A) of the South Carolina Code of Laws. At a member's request, the House Operations and Management Committee may use any unexpended portion of a member's allotment to purchase equipment for a member's office. The amount herein appropriated for additional support personnel shall be allocated to eligible members as follows: For fiscal years beginning in even years, an eligible member is allowed an allocation of $1,000 $500 beginning July 1, as approved by the Speaker of the House. An additional $2,000 $1,500 allotment, as approved by the Speaker of the House, is allowed when the eligible member's election to the upcoming General Assembly is certified or at the time the member is unopposed for the general election, whichever occurs first. A member elected to a full term in the House of Representatives, who did not serve in the General Assembly preceding the election, is allowed an allocation of $2,000 $1,500, as approved by the Speaker of the House, from the time the member's election is certified until the end of the then current fiscal year. For fiscal years beginning in odd years, eligible members are allowed an allocation of $3,000 $2000, as approved by the Speaker of the House. Provided however, for Fiscal Year 2002-03, eligible members are allowed an allocation of $2,000. Whenever a member is


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elected to fill an unexpired term, the allotment must be prorated on a monthly basis. The amounts provided above as allotments for members are provided for an aide's compensation, exclusive of employer contributions. Each member may choose to expend his allocation for an individual legislative aide or may choose to combine his allocation with allocations of other House members for a legislative aide to assist each of the members contributing to the expense of that aide.

54.27.   (LEG: Per Diem) No per diem may be paid to any person from more than one source for any one calendar day.

54.30.   (LEG: House/Senate Staff Outside Employment) Full-time employees of the House of Representatives and the Senate are prohibited from outside employment during normal working hours, except with the permission of an employee's department head, and annual leave must be taken for any approved outside employment.

54.32.   (LEG: Sales Tax on Copies of Legislation) No sales tax is required to be charged or paid on copies of or access to legislation or other informational documents provided to the general public or any other person by a legislative agency when a charge for these copies is made reflecting the agency's cost thereof. Funds received as revenue from the sale of materials or as reimbursements for the cost of providing certain supplies or services or refunds must be remitted to the State Treasurer as collected, but in no event later than twelve (12) working days from the date of the receipt of any such funds.

54.33.   (LEG: House Postage/Telephone Allocation) Any member of the House who has not used all of his annual allocation for postage or all of his annual allocation for telephone expenses may use the remaining funds in one category in the other category during that year.

54.34.   (LEG: House Personnel BPI/Merit/Bonus Compensation) Notwithstanding any limitation or other provisions of law to the contrary, the Speaker shall authorize and allocate any base pay increase, merit pay, or bonus among House staff in the manner that the Speaker determines after consultation with the Operations and Management Committee and the chairmen of the standing committees of the House.

54.35.   (LEG: General Assembly Exemption) Notwithstanding any other provision of law or regulation, or any limitation or provision contained in this act, each branch of the General Assembly is exempt from any provision which requires the approval of the Budget and Control Board or any other executive branch agency for the expenditure, management, or transfer of any authorized appropriations.


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54.36.   (LEG: Prohibit General Assembly Compensation - Felony Conviction) No member of the General Assembly who has been convicted of a felony under state or federal law or who has pled guilty or nolo contendere to these offenses may receive compensation or reimbursable expenses provided for members of the General Assembly in this act. However, this item does not apply to a person who has been pardoned under state or federal law of the disqualifying felony.

54.39.   (LEG: House Funds) Funds in the amount of $75,252.38 appropriated to the House of Representatives pursuant to Act 66 of 2001 may be retained and carried forward into the current fiscal year and expended for the purpose of covering expenses of the House's programs and operations and for Fiscal Year 2002-03, $50,793 of the above mentioned funds shall be used for Council of State Government dues.

54.40.   (LEG: LPITS) Legislative Printing, Information and Technology Systems (LPITS) shall operate under the supervision and administrative direction of the Clerks of the respective Houses. The director of LPITS shall be appointed with the concurrence of the Clerk of the Senate and the Clerk of the House. LPITS shall perform the functions of the former LIS and LPITR.

SECTION 55 - ADMINISTRATIVE LAW JUDGE DIVISION (C05)

55.3.   (ALJ: Filing Fees) Each request for a contested case hearing, notice of appeal, or request for injunctive relief before the division must be accompanied by a filing fee equal to that charged in circuit court for filing a summons and complaint, unless another filing fee schedule is established by rules which shall be promulgated by the division, and shall be subject to review as are rules of procedure promulgated by the Supreme Court under Article V of the Constitution. (Article V, Section 4A requires submission to the Judiciary Committee of each House and are effective 90 days from submission unless disapproved by the General Assembly.) This fee must be retained by the division in order to help defray the costs of the proceedings. The filing fee for administrative appeals by inmates from final decisions of the Department of Corrections shall be $25.00. If an inmate filing an appeal in such a matter has been declared indigent by a court of competent jurisdiction and provides proof of the declaration at the time of filing, the fee will automatically be waived. No filing fee shall be required in administrative appeals by inmates from final decisions of the Department of Corrections. If the presiding administrative law judge determines at the conclusion of the proceeding that the case was


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frivolous or taken solely for the purpose of delay, the judge may impose such sanctions as the circumstances of the case and discouragement of like conduct in the future may require.

SECTION 56DD - GOVERNOR'S OFFICE (D21)

56DD.14.   (GOV: SLED - Witness Fee) The State Law Enforcement Division is hereby authorized to charge a witness fee of $130.00 per hour up to $1,000 per day for each criminalist employee testifying in civil matters which do not involve the State as a party in interest. This fee shall be charged in addition to any court prescribed payment due as compensation or reimbursement for judicial appearances and deposited into a designated revenue account.

56DD.31.   (GOV: OEPP - Child Treatment Facility Providers) The Division of Children Services of the Governor's Office is directed to convene and coordinate a group of representatives from various state agencies to review the licensing system for child treatment facility providers. The purpose of this group effort is to assess the current licensure system, including all relevant monitoring regulations, and make recommendations to streamline the licensure process, eliminate duplication, identify inconsistencies in regulations, and clearly define the roles and responsibilities for all monitoring and regulatory entities. Representatives from the Department of Health and Environmental Control, Department of Social Services, State Fire Marshal, and Continuum of Care along with provider agencies must be included in this group effort. These recommendations shall be submitted to the Ways and Means Committee and the Senate Finance Committee by January 2, 2003.

56DD.33.   (GOV: SLED - Sex Offender Registry Fee) Each Sheriff is authorized to charge and collect an annual amount of one hundred dollars from each sex offender required to register by law. If such sex offender has been declared indigent by a court of competent jurisdiction the Clerk of Court of the county in which the offender must register and provides proof of the declaration at the time of registration, the fee will automatically be waived. If an offender is not declared indigent and fails to pay the fee, he is officially declared unregistered. This fee shall be equally divided between the Sheriffs and the State Law Enforcement Division. Sheriffs shall remit the appropriate portion of these funds to SLED on a quarterly basis. These funds must be used to support the Statewide Sex Offender Registry.

SECTION 57 - LIEUTENANT GOVERNOR'S OFFICE (E04)

57.1.   (LTG: Personnel Administration Exemption) The staff of the Lieutenant Governor's Office shall be exempt from the provisions of


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Article 3, Chapter 11, Title 8 of the 1976 Code of Laws, as amended. In addition, the staff of the Lieutenant Governor's Office shall be exempt from the provisions of Article 5, Chapter 17, Title 8 of the 1976 Code of Laws, as amended.

SECTION 58 - SECRETARY OF STATE'S OFFICE (E08)

58.1.   (SS: Records Fee/Computer & Telephone Equipment) The Secretary of State may establish and collect fees not to exceed the actual cost of searching for or making copies of records. Such records shall be furnished at the lowest possible cost to the person requesting the records. The agency may retain these funds for the purposes of purchasing and maintaining computer and telephone facsimile equipment and rent. The agency may charge a reasonable hourly rate for making records available to the public and require a reasonable deposit of such costs prior to searching for or making copies of the records.

58.2.   (SS: Insufficient Check Recovery Fines/Retention and Carry Forward) The Secretary of State may establish, collect and retain fines to recover the costs associated with the collection of dishonored checks returned to this agency due to insufficient funds. Such funds shall be retained and expended by this agency in accordance with this purpose and any unused amount shall be carried forward.

SECTION 59 - COMPTROLLER GENERAL (E12)

59.2.   (CG: GAAP Implementation & Refinement) It is the intent of the General Assembly that the State of South Carolina issue financial statements in conformance with Generally Accepted Accounting Principles (GAAP). To this end, the Comptroller General is directed, as the State Accounting Officer, to maintain a Statewide Accounting and Reporting System that will result in proper authorization and control of agency expenditures, including payroll transactions, and in the preparation and issuance of the official financial reports for the State of South Carolina. Under the oversight of the General Assembly, the Comptroller General is given full power and authority to issue accounting policy directives to state agencies in order to comply with GAAP. The Comptroller General is also given full authority to conduct surveys, acquire consulting services, and implement new procedures required to fully implement fully changes required by GAAP.

Likewise, it It is also the intent of the General Assembly to pursue the development implementation of a statewide financial management system and resource planning system for all agencies, with the exception of lump-sum agencies. All Any of these agencies desiring new financial management purchasing, financial, human


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resources, payroll, or budgeting management systems will be encouraged to utilize the are urged to procure the statewide financial management and resource planning system overseen by the South Carolina Enterprise Information System Oversight Committee and endorsed and supported as a common statewide system by the Comptroller General and to use the common equipment and software located in used and supported by the Budget and Control Board's Consolidated Data Center Division of the State CIO. If an agency determines that it is necessary to deviate from the statewide system, the agency will be assessed a one-time charge payable to the Budget and Control Board to develop the interface to the Comptroller General's systems. Any agency desiring to implement a system other than the approved statewide financial management and resource planning system must first obtain approval from the Budget and Control Board's Division of the State CIO and the Comptroller General. Once such approval is obtained, the agency will be assessed a one-time charge payable to the Budget and Control Board to develop interfaces to the statewide system superintended by the Comptroller General.

59.5.   (CG: Lump Sum Agencies GAAP Implementation) The Comptroller General's Office, in conjunction with lump sum agencies, is hereby directed to implement appropriate accounting procedures to consolidate accounts where necessary for proper accounting and thereby facilitate financial reporting in accordance with Generally Accepted Accounting Principles.

59.8.   (CG: GASB #34 Implementation) The Comptroller General's Office is authorized to transfer appropriations or cash between accounts as necessary to assure adequate funding for South Carolina's required implementation of annual compliance with the Governmental Accounting Standards Board's (GASB) Statement #34.

SECTION 60 - STATE TREASURER'S OFFICE (E16)

60.6.   (TREAS: Health Care Funding) The State Treasurer's Office shall transfer the entire balance from the State Treasurer's Office Subfund 4123 to the Healthcare Tobacco Settlement Trust Fund to be used along with interest earnings for funding of health related issues as determined by the General Assembly.

60.7.   (TREAS: Excess Debt Service Funds) The State Treasurer's Office must carry forward $2,581,138 of Excess Debt Service from FY 2001-02 and credit such amount to the General Fund in FY 2002-03 to be used as a source to support appropriations.

60.8.   (TREAS: Unclaimed Property) Notwithstanding Section 27-18-190(A) the State Treasurer shall be required to publish a notice not


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later than April thirtieth of the calendar year immediately following the report required by Section 27-18-180 by electronic means in this State and at least once in a newspaper of general circulation in the county of this State in which is located the last known address of any person named in the notice until such time as the diennial census reveals that seventy-five (75%) percent of the homes in each county are equipped with computers having access to the Internet. When the census reveals that seventy-five (75%) percent of the homes in a county are equipped with a computer having access to the Internet, the State Treasurer may publish the notice electronically for such county and will not be required to publish the notice in a newspaper of general circulation in that county or in urban counties which have a population over 100,000.

SECTION 61 - ADJUTANT GENERAL'S OFFICE (E24)

61.11.   (ADJ: National Guard Lease Payment Exemption) In the calculation of any across-the-board cut mandated by the Budget and Control Board or the General Assembly, the amount of the appropriation for the National Guard Lease Payment shall be excluded from the Adjutant General's base budget.

61.12.   (ADJ: EPD Payment of Compensatory Time) When a State of Emergency is declared by the Governor, exempt employees of the Emergency Preparedness Division may be paid for actual hours worked in lieu of compensatory time, at the discretion of the Agency Director, provided agency funds are available.

SECTION 62 - ELECTION COMMISSION (E28)

62.2.   (ELECT: Elections Managers & Clerks Per Diem) Managers and clerks of state and county elections shall receive a per diem of $50.00; but managers shall not be paid for more than two days for any election and clerks for not more than three days for any election. The commission may adjust the per diem of $50.00 for the managers and clerks of the statewide election to a higher level only to the extent that the appropriation for the statewide election is sufficient to bear the added cost of increasing the per diem and the cost of the statewide election. Three Up to three additional managers per county may be appointed to assist county registration boards with the absentee/fail safe voting process prior to, on election day, and immediately following statewide elections. Managers assisting the registration board in the absentee/fail safe process may receive a per diem of $50.00 per day for not more than five days a total of fifteen days regardless of whether one, two, or three additional managers are used.

62.12.   (ELECT: Election Support Services) The State Election Commission provides election support services to county election


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commissions by providing election databases and ballots. Up to $75,000 of revenue generated by charging a fee for these services may be retained and expended by the South Carolina Election Commission to help cover the costs of providing election support services.

62.13.   (ELECT: Help America Vote Act) Of funds appropriated to the commission for primary elections, the commission shall utilize any excess funds to match the Help America Vote Act program to the greatest extent possible.

SECTION 63 - BUDGET AND CONTROL BOARD (F03)

63.2.   (BCB: Performance Excellence) It is the intent of the General Assembly to adequately train the state's work force to enable agencies to achieve their missions and to serve their customers. The Budget and Control Board will be responsible for coordinating the quality training effort for state government agency leaders. The Budget and Control Board shall be responsible for development of an approach that is based on criteria used for the Malcolm Baldrige National Quality Award. State agency heads should ensure that employees asked to improve administrative and managerial functions will be trained fully in performance improvement tools and techniques. Measurements of performance for the requirements of this provision must be included in the agency's Annual Accountability Report. The Budget and Control Board is authorized to carry forward any unspent funds designated for Malcolm Baldrige training.

The Budget and Control Board shall provide for a process that allows each agency to obtain feedback and improvement suggestions on its annual accountability report. In acknowledgement of the significant improvement that the Department of Revenue exhibited in its Fiscal Year 2000-01 Accountability Report, the Budget and Control Board is directed to consult with the Department of Revenue in the design of the process and improvements that may be recommended to the accountability reports required by this proviso. Agency feedback will be based on the Malcolm Baldrige Criteria for Performance Excellence and related questions found in the applicable Accountability Report Guidelines. Feedback results should be used by each agency to develop short and long-term improvement plans. The Board shall seek the support of key stakeholder agencies to ensure that a sufficient number of properly trained staff are available to perform assessments in a timely manner. Agencies shall provide staff volunteers who are knowledgeable in process improvement to become trained in the assessment process, and allow these volunteers sufficient time for training and for the assessment process.


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63.4.   (BCB: Computer Services Consolidation) It is the intent of the General Assembly to consolidate management of computing services and computer support services under the Budget and Control Board. The Executive Director of the Budget and Control Board developed a long-term strategic plan to accomplish this consolidation and to centralize all State Data Centers. The Executive Director of the Budget and Control Board, in consultation with the Governor, Chairman of the Senate Finance Committee, and the Chairman of the Ways and Means Committee, implemented the Data Center Consolidation Plan as presented to and approved by the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee on January 15, 1997. The plan is structured in phases with a final implementation date no later than July 2001. All agencies affected by this plan are required to comply with the directives and mandates inherent in this planning document and must transfer any needed fixed assets, staff, and associated FTEs to the Budget and Control Board at such time as they are requested. The Legislature General Assembly, Judiciary, higher education institutions, and technical education institutions are exempt from this proviso. The Board board shall report annually in its Agency Accountability Report appropriate performance measures relative to the operation of the Consolidated Data Center.

Likewise, it It is also the intent of the General Assembly to pursue application consolidation, where feasible, as referenced in the Consolidation Plan. The Board is authorized to assist in implementing the implementation of a statewide financial management and resource planning system for all agencies, with the exception of lump-sum agencies. All Any of these agencies desiring new financial management purchasing, financial, human resources, payroll, or budgeting systems will be encouraged to utilize the are urged to procure the statewide financial management and resources planning system overseen by the South Carolina Enterprise Information System Oversight Committee and endorsed and supported as a common statewide system by the Comptroller General and to use the common equipment and software located in used and supported by the Budget and Control Board's Consolidated Data Center Division of State CIO. If an Any agency determines that it is necessary to deviate from the statewide system, desiring to implement a system other than the approved statewide financial management and resource planning system must first obtain the approval from the Budget and Control Board's Division of the State CIO and the Comptroller General and


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once approval is obtained the agency will be assessed a one-time charge payable to the Budget and Control Board to develop the interface interfaces to the statewide system superintended by the Comptroller General's systems General.

63.5.   (BCB: EFA Litigation Carry Forward) Any unexpended balance from the funds authorized and/or appropriated for EFA litigation in previous fiscal years shall be carried forward to be expended in the same manner and for the same purposes in the current fiscal year.

63.6.   (BCB: BCB Realignment) The Budget and Control Board shall be authorized to realign its Fiscal Year 2002-03 2003-04 detailed budget and division structures into a revised structure to reflect actual agency operations. Where a proviso contained in the appropriations bill for the current year references either an Office or Division of the Budget and Control Board, the Office of State Budget is directed to change that reference to "Budget and Control Board."

63.10.   (BCB: Fleet Management Program) The Division of Operations shall establish a cost allocation plan to recover the cost of operating the comprehensive statewide Fleet Management Program. The division shall collect, retain and carry forward funds to ensure continuous administration of the program.

63.11.   (BCB: State House Operation & Maintenance Account) Of the funds Funds appropriated in to the Budget and Control Board -General Services, $957,339 for State House Maintenance & Operations & Renovations must be set aside in a separate account for the operation and maintenance of the State House. The Budget and Control Board shall report annually to the State House Committee on the amount expended from this fund.

63.12.   (BCB: Health Plan Reserve) Notwithstanding any other provision of law, the State Health Plan is only required to seek a zero day reserve fund by the end of calendar year 2002 2003. When devising a plan for the method and schedule of payment for the employee share of contributions for the State Health and Dental Plan Year for 2004, the Budget and Control Board shall not increase the employee contribution rates nor decrease benefits for State Health Plan participants.

63.17.   (BCB: BEA Membership, Compensation, Duties) Notwithstanding the provisions of 11-9-820 of the 1976 Code, the Board of Economic Advisors shall consist of the following members:

(1)   one member, appointed by the Governor, who shall serve as chairman and shall receive the sum of $10,000 annually;


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(2)   one member appointed by the Chairman of the Senate Finance Committee who shall receive the sum of $8,000 annually;

(3)   one member appointed by the Chairman of the Ways and Means Committee of the House of Representatives who shall receive the sum of $8,000 annually;

(4)   Director of the Department of Revenue, ex officio with no voting rights.

The appointed members shall serve at the pleasure of their appointers. The Chairman of the Board of Economic Advisors shall report directly to the Budget and Control Board to establish policy governing economic trend analysis. The Board of Economic Advisors shall provide for its staffing and administrative support from funds appropriated by the General Assembly.

The Executive Director of the Budget and Control Board shall assist the Governor, Chairman of the Board of Economic Advisors, Chairman of the Senate Finance Committee, and Chairman of the Ways and Means Committee of the House of Representatives in providing an effective system for compiling and maintaining current and reliable economic data. The Board of Economic Advisors is considered a public body under the provisions of Section 30-4-20(a) of the 1976 Code. The Board of Economic Advisors may establish an advisory board to assist in carrying out its duties and responsibilities. All state agencies, departments, institutions and divisions shall provide such information and data as the board may require.

The Department of Commerce shall provide to the Board of Economic Advisors by November tenth the public document prepared pursuant to Section 12-10-100(C) of the 1976 Code itemizing each revitalization agreement concluded during the prior calendar year. The Department of Revenue shall provide to the Board of Economic Advisors by November tenth a report of the amount of each tax credit claimed in the previous tax year pursuant to Title 12 of the 1976 Code. The report must individually list the total amount claimed and the number of filings for each tax credit. The Department of Revenue must also provide to the Board of Economic Advisors by November tenth magnetic tapes containing data from all state individual and corporate income tax filings, excluding any confidential identifying information, from the previous tax year.

63.21.   (BCB: Artifacts Disposition) No artifacts owned by the State in the permanent collections of the Confederate Relic Room shall be permanently removed or disposed of except by a Concurrent Resolution of the General Assembly.


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63.22.   (BCB: Research/Copy Fee) The Confederate Relic Room is authorized to collect, retain and expend fees from research and photographic processing requests and from the sale of promotional items.

63.23.   (BCB: Appointment of Director) The Director of the Confederate Relic Room shall be appointed, after consultation with the South Carolina Division Commander of the Sons of the Confederate Veterans and the President of the South Carolina Chapter of the United Daughters of the Confederacy, by the Executive Director of the South Carolina Budget and Control Board and shall serve at his pleasure.

63.24.   (BCB: Donations) The Confederate Relic Room is authorized to receive donations of funds, artifacts and admission fees and to expend these donations and fees for the restoration, preservation, acquisition, display, and support operation of the collection to supplement state monies appropriated for such purposes.

63.25.   (BCB: Confederate Museum Relocation) The Confederate Museum shall be retained as a separate and distinct entity under the State Budget and Control Board.

63.28.   (BCB: Hazardous Weather Emergency Leave) Notwithstanding any other provisions of law, when the Governor declares a state of emergency for the State or any portion of the State, he can provide state employees with leave with pay for absences from work due to the state of emergency for hazardous weather of up to five days for each declaration of a state of emergency.

63.29.   (BCB: Carry Forward - BCB Grant Program, Special Projects & EPA Grant Match Funds Local Government Assistance) Funds appropriated under Section 63, Division of Regional Development, "Aid to Entities": The Budget and Control Board Grant Program Funds, Special Projects and EPA Grant Match Funds which are not expended in the prior fiscal year may be carried forward to be expended in the current fiscal year may carry forward from the prior fiscal year to the current fiscal year funds appropriated for the purpose of providing financial assistance to local governments with water, wastewater, and sewer projects. Of the Grant Funds appropriated under the Division of Regional Development for such purposes, $400,000 may be used for operating costs of the division in order to enhance the relevant technical assistance capabilities of the Office of Local Government board.

63.30.   (BCB: Carry Forward - State Water Pollution Control Revolving Fund) If any funds accumulated by the Budget and Control Board, Division of Regional Development from loan fees are not


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expended during the preceding fiscal years, such funds may be carried forward and expended for the costs associated with conducting the State Revolving Fund programs for wastewater or drinking water.

63.33.   (BCB: Retirement Benefits Limits Increase) Notwithstanding any other provision of law, except as provided below, retirees and beneficiaries under the State Retirement Systems receiving Medicaid (Title XIX) sponsored nursing home care as of June 30, of the prior fiscal year shall receive no increase in retirement benefits during the current fiscal year. However, a retired employee affected by the above prohibition may receive the scheduled increase if he is discharged from the nursing home and does not require admission to a hospital or nursing home within six months. The Department of Health & Human Services, the Department of Social Services, and the State Retirement Systems must share the information needed to implement this proviso.

63.34.   (BCB: Retirement Contributions - Monthly Transfers) Notwithstanding the amounts appropriated in Subsection 63 of this section as "State Employer Contributions," the State Treasurer and Comptroller General are hereby authorized and directed to transfer from the General Fund of the State to the proper Retirement System Accounts, month by month, during the current fiscal year, such funds as are necessary to comply with the terms of the Retirement Act as amended, with respect to contributions by the State of South Carolina to the Retirement System.

63.35.   (BCB: Career Growth Opportunity) In order to prepare and plan for a professional workforce, the Budget and Control Board is directed to provide policy recommendations for creating additional career growth opportunities and succession planning for state employees based upon skills, education, experience, and performance or other significant factors. At a minimum, these recommendations shall include an analysis of current career growth opportunities within agencies, priority needs within and between agencies, current resources used to provide career advancement, determination of additional funding needs, and an implementation plan. Such recommendations shall be provided to the Office of the Governor, Senate Finance Committee, and Ways and Means Committee by December 1, 2002.

63.36.   (BCB: Mandatory Furlough) Notwithstanding Section 8-11-195 of the 1976 Code, or any other provision of law, in a fiscal year in which the general funds appropriated for a state agency, institution, or department are less than the general funds appropriated for that state agency, institution, or department in the preceding fiscal year, or whenever the General Assembly or the Budget and Control Board


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implements a midyear an across-the-board budget reduction, agency heads may institute employee furlough programs of not more than ten working days in the fiscal year in which the deficit is projected to occur. The furlough must be inclusive of all employees in an agency or within a designated department or program regardless of source of funds or place of work and must include employees in classified positions and unclassified positions as well as agency heads. The furlough must include all classified and unclassified employees in the designated area. If the furlough includes the entire agency, the furlough must include the agency head. Scheduling of furlough days, or portions of days, shall be at the discretion of the agency head, but under no circumstances should the agency close completely. During this furlough, affected employees shall be entitled to participate in the same state benefits as otherwise available to them except for receiving their salaries. As to those benefits that which require employer and employee contributions, including but not limited to contributions to the South Carolina Retirement System or the optional retirement program, the state agencies, institutions, and departments will be responsible for making both employer and employee contributions if coverage would otherwise be interrupted; and as to those benefits which require only employee contributions, the employee remains solely responsible for making those contributions. Placement of an employee on furlough under this provision does not constitute a grievance or appeal under the State Employee Grievance Procedure Act. In the event the reduction for the state agency, institution, or department is due solely to the General Assembly transferring or deleting a program, this provision does not apply. The implementation of a furlough program authorized by this provision shall be on an agency-by-agency basis. Agencies may allocate the employee's reduction in pay over the balance of the fiscal year for payroll purposes regardless of the pay period within which the furlough occurs. The Budget and Control Board shall promulgate guidelines and policies, as necessary, to implement the provisions of this proviso. State agencies shall report information regarding furloughs to the Office of Human Resources of the Budget and Control Board.

63.41.   (BCB: Technology and Other Initiatives) The Budget and Control Board shall use $500,000 $100,000 to support partnerships that further initiatives to align higher educational programs with the needs of technology-intensive industries and $221,727 for NCSL and CSG dues.


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63.43.   (BCB: State Health Insurance Plan Financing Advisory Study Committee) The Executive Director of the Budget and Control Board shall convene a study committee to evaluate the financial structure of the State Health Insurance Plan and make recommendations on methods to financially stabilize the Plan. The committee must include persons with expertise in evaluating financial management systems. The committee shall provide a report to the Budget and Control Board and to the Chairmen of the Senate Finance and House Ways and Means Committees by January 1, 2003.

63.46.   (BCB: Family Sick Leave) For Fiscal Year 2002-2003 the current fiscal year, state employees who earn sick leave as provided in Section 8-11-40 of the 1976 Code may use ten days rather than eight days of sick leave to care for ill members of their immediate family. Immediate family is defined as the employee's spouse and children, and the following relations to the employee or the spouse of the employee: mother, father, brother, sister, grandparent, legal guardian, and grandchildren.

63.48.   (BCB: Forgive PRT Loan Repayment) The Budget and Control Board is directed to forgive the loan repayment of $2 million that is due to be repaid by July 31, 2002 pursuant to the loan agreement between the Budget and Control Board and the Department of Parks, Recreation and Tourism dated November 6, 2001.

63.49.   (BCB: Election to Participate in State ORP) An eligible employee hired by an employer during the current fiscal year has fifteen days rather than sixty days after entering into service to make the election to participate in the State Optional Retirement Program (ORP). Failure by such person to make this election within fifteen days after entering into service is considered an election by the employee for membership in the SCRS. The definitions provided in Section 9-20-10 of the 1976 Code apply for purposes of this paragraph.

63.50.   (BCB: State Health Plan Savings) The Budget and Control Board is directed to review the final report of the State Health Plan Financing Advisory Study Committee and is further directed to consider these and any other proposals with a goal of limiting the impact on participants.

63.51.   (BCB: MoneyPlus) In order to lessen the effect of any potential increase in employee rates for the State Health Plan for calendar year 2004, the Budget and Control Board is directed to: (a) develop an aggressive outreach program for the purpose of enrolling employees in the "MoneyPlus" flexible benefits program to assist employees in off-setting medical expenses. The board shall report to


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the Chairmen of the Senate Finance and House Ways and Means Committees the number of new enrollees to the program and the estimated savings to employees as a result of this effort by February 1, 2004; and (b) develop an aggressive outreach program for the purpose of educating members of the State Health Plan in programs that compliment the state health programs, and employee and plan costs with alternative revenue or funding sources. The board is also authorized to use funds from the State Health Plan to match alternative revenue or funding sources.

63.52.   (BCB: Military Quarterly Filing Relief) No interest, penalties, or other sanctions may be imposed on the active duty income of members of the National Guard and Reserves activated as a result of the conflict in Iraq and the war on terrorism with regard to payment of state estimated quarterly individual income tax payments of the active duty income if the federal government is unable to properly withhold State of South Carolina income taxes due on their active duty pay.

63.53.   (BCB: Military Service) Notwithstanding the provisions of Section 8-11-610 of the 1976 Code, a permanent full-time state employee who serves on active duty as a result "Operation Enduring Freedom" or "Operation Noble Eagle," or in a unit federalized for duty in connection with potential or actual hostilities in Iraq, or any combination of these duties, and performs such duty may use up to forty-five days of accumulated annual leave and may use up to ninety days of accumulated sick leave in a calendar year as if it were annual leave.

63.56.   (BCB: Eligibility to Participate in State ORP) An employee hired on or after January 1, 2003, but before July 1, 2003, by the State who is not covered by the State Employee Grievance Procedure but who is eligible to participate in either the SC Retirement System or the Police Officers Retirement System may elect to join the State Optional Retirement Program (State ORP) by July 31, 2003. An employee electing to participate in the State ORP is eligible to participate in the State ORP retroactive to their date of hire.

63.58.   (BCB: Commerce Loan Repayment) The Budget and Control Board shall postpone for Fiscal Year 2003-04 the loan repayment of $3,500,000 by the Department of Commerce pursuant to the loan agreement dated March 1, 2002. In addition, the board shall forgive the repayment of $3,000,000 pursuant to the same loan agreement.

63.59.   (BCB: Employee Pay) The amounts appropriated to the Budget and Control Board for Employee Pay Increases must be


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allocated by the Board to the various state agencies to provide for employee pay increases in accordance with the following plan:

1. With respect to classified, unclassified, non judge judicial classified, non-judicial unclassified and unclassified executive compensation employees, effective on the first pay date that occurs on or after July 1 of the current fiscal year, the compensation of all employees enumerated in this item shall be increased by 2.0%.

2. With respect to agency heads, compensation shall be in accordance with proviso 63.15.

3. With respect to local health care providers, the funds provided for compensation increases shall be based on an annual average 2.0% increase, effective on the first pay date that occurs on or after July 1 of the current fiscal year.

SECTION 63A - BUDGET AND CONTROL BOARD - STATE AUDITOR (F27)

63A.1.   (BCB/AUD: Access of Records) Notwithstanding any other provision of law, for the purposes of carrying out his duties, the State Auditor and his assistants or designees shall have access to all records and facilities of every state agency during normal operating hours. Furthermore, the State Auditor and his assistants or designees shall have access to all relevant records and facilities of any private organization which is appropriated state monies, relating to the management and expenditures of such funds, during the organization's normal operating hours. In the performance of his official duties, the State Auditor and his assistants or designees are subject to the statutory provisions and penalties regarding the confidentiality of records of the respective agency, or organization, under review. All audit working papers and memoranda of the State Auditor, with the exception of final audit reports, are confidential and not subject to public disclosure.

63A.4.   (BCB/AUD: Medical Assistance Audit) The Department of Health and Human Services shall remit to the general fund an amount representing fifty percent (allowable Federal Financial Participation) of the cost of the Medical Assistance Audit as established in the State Auditor's Office of the Budget and Control Board Section 63A such amount to also include appropriated salary adjustments and employer contributions allowable to this program. Such remittance to the general fund shall be made monthly and based on invoices as provided by the State Auditor's Office of the Budget and Control Board.

SECTION 63B - BUDGET AND CONTROL BOARD - EMPLOYEE BENEFITS (F30)


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63B.1.   (BCB/EB: Benefits - Proportionate Payment) It is the intent of the General Assembly that any agency of the State Government whose operations are covered by funds from other than general fund appropriations shall pay from such other sources a proportionate share of the employer costs of retirement, social security, workmen's compensation insurance, unemployment compensation insurance, health and other insurance for active and retired employees, and any other employer contribution provided by the State for the agency's employees.

63B.2.   (BCB/EB: Unemployment Compensation Account) Unemployment Compensation premiums collected from state agencies will be deposited into a separate account and used to pay Unemployment Compensation benefits to eligible employees of the State. Premiums will be based on experience ratings provided by private consultants and the Budget and Control Board. The Unemployment Compensation Funds' contribution level must be reviewed no less than biennially to ensure that premiums are commensurate with the cost of operating the Unemployment Compensation Fund. All interest earned on this account must be retained by the Unemployment Compensation Fund and used to offset costs.

63B.3.   (BCB/EB: Unemployment Compensation Insurance Claims) Notwithstanding the amounts appropriated in Subsection 63B of this section as "Unemployment Compensation Insurance" to cover unemployment benefit claims paid to employees of the State Government who are entitled under federal law, the State Treasurer and the Comptroller General are hereby authorized and directed to pay from the General Fund of the State to the South Carolina Employment Security Commission such funds as are necessary to cover actual benefit claims paid during the current fiscal year which exceed the amounts paid in for this purpose by the various agencies, departments and institutions subject to unemployment compensation claims. The Employment Security Commission shall certify quarterly to the Budget and Control Board the state's liability for such benefit claims actually paid to claimants who were employees of the State of South Carolina and entitled under federal law. The amount so certified shall be remitted to the Employment Security Commission.

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Government who are entitled under state law, the State Treasurer and the Comptroller General are hereby authorized and directed to pay from the General Fund of the State to the State Accident Fund such funds as are necessary to cover actual benefit claims paid and expenses relating to the operations of the agency during the current fiscal year which exceed the amounts paid in for this purpose by the various agencies, departments, and institutions. The State Accident Fund shall certify quarterly to the Budget and Control Board the state's liability for such benefit claims actually paid to claimants who are employees of the State of South Carolina and entitled under state law. The amount so certified shall be remitted to the State Accident Fund.

SECTION 63C - BUDGET AND CONTROL BOARD - CAPITAL RESERVE FUND (F31)

63C.1.   (BCB/CRF: Deficit Projected - Use of CRF) If the Board of Economic Advisors revenue forecast to the Budget and Control Board at any time during the current fiscal year projects that revenues for the current fiscal year will be less than appropriated expenditures for this year, the Budget and Control Board in mandating necessary cuts during the current fiscal year to eliminate the projected deficit must first reduce to the extent necessary the appropriation herein contained to the Capital Reserve Fund, prior to mandating any cuts in operating appropriations.

SECTION 64 - DEPARTMENT OF REVENUE (R44)

64.1.   (DOR: Cost Recovery Fee) The Department of Revenue may collect fees to recover the costs of the production, purchase, handling and mailing of documents, publications, records and data sets, and such funds shall be retained by the agency.

64.3.   (DOR: Bingo Revenue) As to revenue derived from the provisions of Chapter 21, Title 12, which is collected from bingo, the Department of Revenue may withhold from the general fund portion of this revenue the actual costs of bingo audit activity and of criminal record checks pursuant to the evaluation of applications for bingo licenses.

64.6.   (DOR: Professional Designation or License Cost) Whenever a professional designation or license is a legislatively mandated requirement for employment by the Department of Revenue, the department shall be responsible for the annual cost to maintain that required designation or license and provide for examination cost associated with such designation or license if not outside his/her normal duties.


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64.14.   (DOR: County Allocation Adjustments) Notwithstanding the limitations set forth on adjustments of local option sales tax collections, the Department of Revenue is allowed to make adjustments within the county allocations for Fiscal Year 2001-02 during Fiscal Year 2002-03.

64.16.   (DOR: Tax Return Information) Notwithstanding the provisions of Section 12-54-240 of the 1976 Code or any other provision of law, nothing prevents the disclosure of any information on any return that has been filed with the Department of Revenue to the Department of Health and Human Services for the purpose of verifying Medicaid eligibility.

SECTION 66 - PROCUREMENT REVIEW PANEL (S60)

SECTION 69A - AID TO SUBDIVISIONS, COMPTROLLER GENERAL (X120)

69A.1.   (AS-CG: Salary Supplements) Of the amount The amounts appropriated in this section Part IA, Section 69A, for Aid Cnty-Clerks of Court, Aid Cnty-Probate Judges, and Aid Cnty-Sheriffs for clerks of court, probate judges, and county sheriffs, $4,725 shall be distributed by the Comptroller General to each county treasurer equally, which and shall be used as a $1,575 salary supplement for each clerk of court, probate judge, and county sheriff. The amounts appropriated in this section Part IA, Section 69A, for Aid Cnty-Register of Deeds, for registers of deeds shall be equally distributed by the Comptroller General to the appropriate county treasurer, which and shall be used as a $1,575 salary supplement for registers of deeds. The State shall pay $16,899 amount appropriated in Part IA, Section 69A, for Aid Cnty-Auditors and Aid Cnty-Treasurers, shall be equally distributed as a salary supplement to each county auditor and county treasurer as a salary supplement in addition to any amounts presently being provided by the county for these positions. It is the intent of the General Assembly that the amount appropriated by the county as salaries for these positions shall not be reduced as a result of the appropriation and that such appropriation shall not disqualify each county auditor and each county treasurer for salary increases that they might otherwise receive from county funds in the future. The salary supplement for each county auditor and county treasurer shall be paid in accordance with the schedule and method of payment established for state employees.

SECTION 72 - GENERAL PROVISIONS (X90)

72.2.   (GP: Use of Funds) It is the intent of the General Assembly to appropriate all state funds and to authorize and/or appropriate the use of all federal and other funds for the operations of State agencies and


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institutions for the current fiscal year. Transfers of funds may be approved by the Budget and Control Board under its authority or by the agency as set forth herein in Section 72.14. Any agency which requests or transfers personal service funds must indicate on the transfer document whether or not a reduction in force is involved. To the extent practicable, all agencies and institutions having federal or other funds available for the financing of their operation shall expend such funds in accordance with the intent of this act. The authorization to spend federal and other funds shall be decreased to the extent that receipts from these sources do not meet the estimates as reflected in each section of this act; and any increase shall be authorized through the review process as set forth in Act 651 of 1978 as amended.

72.4.   (GP: Fiscal Year Definitions) For purposes of the appropriations made by this part, "current fiscal year" means the fiscal year beginning July 1, 2002 2003, and ending June 30, 2003 2004, and "prior fiscal year" means the fiscal year beginning July 1, 2001 2002, and ending June 30, 2002 2003.

72.8.   (GP: Credit Cards for Goods & Services) Notwithstanding any other provision of law, the State Treasurer may enter into contracts whereby the agency or institution may accept credit cards as payment for goods or services provided.

72.9.   (GP: Warrant Requisitions, Deposits) The expenditure of money appropriated in this act shall be by warrant requisitions directed to the Comptroller General. Upon receipt of the requisition, accompanied by invoices or other satisfactory evidence of the propriety of the payment, and itemized according to standard budget classifications, the Comptroller General shall issue his warrant on the State Treasurer to the payee designated in the requisition. No requisitions for warrants shall be processed for any amounts less than one dollar. Upon approval and designation by the State Budget and Control Board, state institutions may requisition funds in favor of their own treasurer, itemized only to the extent of the purpose of the appropriation as expressed in this act, and may deposit such funds in the name of the institution, in such bank or banking institutions as shall be designated by the State Treasurer, and disburse same by check to meet the purposes of the appropriation, but strict account shall be kept of all such expenditures according to standard budget classifications. All money shall be drawn only when actually owing and due. The Comptroller General shall establish rules and regulations for the uniform reimbursement, remittance and transfers of funds to the General Fund of the State required by law.


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72.11.   (GP: Federal Funds, Donations, Deposited in State Treasury) All federal funds received shall be deposited in the State Treasury, if not in conflict with federal regulations, and withdrawn therefrom as needed, in the same manner as that provided for the disbursement of state funds. If it shall be determined that federal funds are not available for, or cannot be appropriately used in connection with, all or any part of any activity or program for which state funds are specifically appropriated in this act to match federal funds, the appropriated funds may not be expended and shall be returned to the general fund, except upon specific written approval of the Budget and Control Board. Donations or contributions from sources other than the Federal Government, for use by any state agency, shall be deposited in the State Treasury, but in special accounts, and shall be withdrawn from the treasury as needed to fulfill the purposes and conditions of the said donations, or contributions, if specified, and, if not specified, as may be directed by the proper authorities of the department. The expenditure of funds by agencies of the State Government from sources other than general fund appropriations shall be subject to the same limitations and provisions of law applicable to the expenditure of appropriated funds with respect to salaries, wages or other compensation, travel expense, and other allowance or benefits for employees.

72.15.   (GP: Bank Procedures - State Treasury A Bank) In any instances where federal laws or regulations, relating to funds allotted to state government agencies, include requirements relating to banking procedures, the State Treasury shall be deemed to meet the definition of a bank.

72.21.   (GP: Employer Contributions Cost of Agencies) It is the intent of the General Assembly that the amount so provided to each agency or institution for employee benefits shall be sufficient to pay the employer contribution costs of that agency. The Budget and Control Board is directed to devise a plan for the expenditure of the funds appropriated for employer contributions and may require transfers of funds within an agency or institution if it becomes evident that the employer contribution costs will exceed the funds available for that purpose.

72.22.   (GP: Dual Employment) Any employee who is approved for dual employment must be paid in a timely manner. The secondary agency is required to make payment of funds approved for and earned under dual employment within forty-five days of the beginning of the employment.


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72.23.   (GP: Payroll Schedule & Compensation Restrictions) Except as otherwise provided in this act, all appropriations for compensation of state employees shall be paid in twice-monthly installments to the person holding such position. In order to provide a regular and permanent schedule for payment of employees, it is hereby established that the payroll period shall begin on June 2, of the prior fiscal year with the first pay period ending on June 16, of the prior fiscal year. The payroll period shall continue thereafter on a twice-monthly schedule as established by the Budget and Control Board. It is the intent of the General Assembly that this schedule, thus established, will continue from one fiscal year to another without interruption, on a twice monthly basis. The Budget and Control Board is authorized to approve any changes to this schedule where circumstances are deemed justifiable.

The appropriated salaries for specified positions shall mean the maximum compensation for such position, except as specifically provided in other provisions of this act, and in any case where the head of any department can secure the services for a particular position or work at a lower rate than the salary specified in this act, authority for so doing is hereby given.

No employee of any state department or institution shall be paid any compensation from any other department of the state government except those approved under the provisions of Regulation 19-702.09 of the 1976 Code, as amended, and no employee of any department or institution shall be paid travel expenses by any other department or institution without approval of the agency by which he is regularly employed. The Comptroller General shall report, after June thirtieth of each year, to the Senate Finance Committee and the House Ways and Means Committee the names of all employees receiving dual compensation and the amounts received. The report shall list information under the employing (primary) agency, as well as in the current format which lists employees under the requesting (secondary) agency.

The provisions of Regulation 19-707.02 and Section 8-5-10 of the 1976 Code, as amended, shall not apply to employees hired for 120 days or less.

72.26.   (GP: Temporary Grant Funded or Time Limited Funded Positions) Notwithstanding any other provision of law or this act, state agencies and institutions may, at their discretion, hire employees to fill temporary grant positions specified in federal grants, public charity grants, private foundation grants, research grants and positions with


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time limited funding approved or authorized by the appropriate state authority in accordance with the following provisions:

A.   Only those funds authorized within the approved federal grant, public charity grant, private foundation grant, research grant, or time limited funds for a specified project, or grant generated revenue can be used to pay the salaries and/or benefits of temporary employees hired under this provision.

B.   Temporary grant or time limited positions, employees, and the conditions of their employment shall be reported in accordance with provisions developed by the Division of Budget and Analyses of the Budget and Control Board.

C.   Positions established under this provision must be limited to and must not exist beyond the duration of the time limited project or grant or any subsequent renewal of it; however, at the discretion of the public institutions of higher education, including the technical colleges and schools, grant generated revenue may be used to fund continued employment between the expiration of one grant and the subsequent renewal of the same or similar grant. When the grant, time limited project or any subsequent renewal ends, temporary grant or time limited project employees must be terminated and their positions will cease to exist. Temporary grant or time limited project employees will be exempt from the provisions of Sections 8-17-310 through 8-17-380 of the 1976 Code, as amended. State agencies and institutions must terminate all temporary grant or time limited project positions at any time funding is terminated or is insufficient to continue payments under the conditions of the grant or time limited project.

D.   Temporary grant or time limited project employees may be eligible for benefits, excluding permanent or probationary employment status, not to exceed those benefits available to permanent state employees provided that such funds are available within the grant or time limited project or that the use of grant generated revenue is deemed appropriate by the agency or institution.

E.   Temporary grant or time limited project employees shall be deemed to be employed at will. The use of grant generated revenue shall not alter the at will employment relationship of temporary grant or time limited project employees. The temporary grant or time limited project employee shall not be entitled to any compensation beyond the date of termination, other than for such part of the grant or time limited project that has been performed.


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F.   Discretionary determinations by a state agency or institution as to whether to hire an employee pursuant to this proviso are final and not subject to administrative or judicial appeal.

72.27.   (GP: Personal Service Reconciliation, FTEs) In order to obtain provide the necessary control over the number of employees, the Budget and Control Board is hereby directed to maintain close supervision over the number of state employees, and to require specifically the following:

1.   That no state agency exceed the total authorized number of full-time equivalent positions and those funded from state sources as provided in each section of this act except by majority vote of the Budget and Control Board.

2.   That the Division of Budget and Analyses Budget and Control Board shall maintain and make, as necessary, periodic adjustments thereto, an official record of the total number of authorized full-time equivalent positions by agency for state and total funding sources.

(a)   That within thirty (30) days of the passage of the Appropriation Act or by August 1, whichever comes later, each agency of the State must have established on the Budget and Control Board records all positions authorized in the act Act. After that date, the Board shall delete any nonestablished positions immediately from the official record of authorized full-time equivalent positions. No positions shall be established by the board in excess of the total number authorized in the board record of authorized full-time equivalent positions. Each agency may, upon notification to the Budget and Control Board, change the funding source of state FTE positions established on the Budget and Control Board records as necessary to expend federal and other sources of personal service funds in an effort to conserve or stay within the state appropriated personal service funds. No agency shall change funding sources that will cause the agency to exceed the authorized number of state or total full-time equivalent positions. Each agency may, upon notification to the Budget and Control Board, transfer FTEs between programs as needed to accomplish the agency mission. No agency shall change funding sources that will cause the agency to exceed the authorized number of state or total full-time equivalent positions.

(b)   By That by September 30, the board shall prepare a personal service detail analysis, by agency, which shows each position established the number of established positions for the fiscal year and the amount of funds required, by source of funds, to support the position FTE's for the fiscal year at a funding level of 100%. and the


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The board shall then reconcile each agency's personal service detail with the agency's personal service appropriation as contained in the act Act adjusted for any pay increases, and any other factors necessary to reflect the agency's personal service funding level. The board shall provide a copy of each agency's personal service reconciliation to the Senate Finance and House Ways and Means Committees.

(c)   Any That any position which is shown by the reconciliation to be unfunded or significantly underfunded may be deleted at the direction of the Budget and Control Board.

3.   (d)   Full-time That full-time equivalent (FTE) positions shall be determined under the following guidelines:

(a)   1.   The annual work hours for each FTE shall be the agency's full-time standard annual work hours.

(b)   2.   The state FTE shall be derived by multiplying the state percentage of budgeted funds for each position by the FTE for that position.

(c)   3.   All institutions of higher education shall use a value of 0.75 FTE for each position determined to be full-time faculty with a duration of nine (9) months.

The FTE method of accounting shall be utilized for all authorized positions.

3. 4.   That the number of positions authorized in this act shall be reduced in the following circumstances:

(a)   Upon request by an agency.

(b)   When anticipated federal funds are not made available.

(c)   When the Budget and Control Board, through study or analysis, becomes aware of any unjustifiable excess of positions in any state agency.

4. 5.   The That the Budget and Control Board shall annually reconcile personal service funds with full-time employee count. to determine unfunded Unfunded positions which will be eliminated no later than January 15 of the current fiscal year unless specifically exempted elsewhere in this act or by the State Budget and Control Board. The State Budget and Control Board must report the full-time employee count and unfunded position status to the Senate Finance Committee and the Ways and Means Committee by February 1 of the current fiscal year.

5. 6.   That no new permanent positions in state government shall be funded by appropriations in acts supplemental to this act but temporary positions may be so funded.


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6. 7.   The That the provisions of this section shall not apply to personnel exempt from the State Classification and Compensation Plan under item I of Section 8-11-260 of the 1976 Code.

The Governor, in making his appropriation recommendations to the Ways and Means Committee, must provide that the level of personal service appropriation recommended for each agency is at least 97% of the funds required to meet 100% of the funds needed for the full-time equivalents positions recommended by the Governor (exclusive of new positions).

The requirements of subitem 2(c) and subitem 4 5 contained in this provision are suspended for Fiscal Year 2002-03 2003-04.

72.28.   (GP: Allowance for Residences & Compensation Restrictions) That salaries paid to officers and employees of the State, including its several boards, commissions, and institutions shall be in full for all services rendered, and no perquisites of office or of employment shall be allowed in addition thereto, but such perquisites, commodities, services or other benefits shall be charged for at the prevailing local value and without the purpose or effect of increasing the compensation of said officer or employee. The charge for these items may be payroll deducted at the discretion of the Comptroller General or the chief financial officer at each agency maintaining its own payroll system. This shall not apply to the Governor's Mansion, nor for department-owned housing used for recruitment and training of Mental Health Professionals, nor to guards at any of the state's penal institutions and nurses and attendants at the Department of Mental Health, and the Department of Disabilities & Special Needs, and registered nurses providing clinical care at the MUSC Medical Center, nor to the Superintendent and staff of John de la Howe School, nor to the cottage parents and staff of Wil Lou Gray Opportunity School, nor to full-time or part-time staff who work after regular working hours in the SLED Communications Center or Maintenance Area, nor to adult staff at the Governor's School for Science and Mathematics who are required to stay on campus by the institution because of job requirements or program participation. The presidents of those state institutions of higher learning authorized to provide on-campus residential facilities for students may be permitted to occupy residences on the grounds of such institutions without charge.

Any state institution of higher learning may provide a housing allowance to the president in lieu of a residential facility, the amount to be approved by the Budget and Control Board.


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That the following may be permitted to occupy residences owned by the respective departments without charge: the Commissioner of the Department of Corrections, the Director of the Department of Mental Health, the Farm Director, Farm Managers, and Specialists employed at the Wateree River Correctional Institution, Walden Correctional Institution, MacDougall Youth Correctional Center, and Givens Youth Correctional Center; the S. C. State Commission of Forestry fire tower operators, forestry aides, and caretaker at central headquarters; the Department of Natural Resources' Game Management Personnel, Fish Hatchery Superintendents, Lake Superintendent, and Fort Johnson Superintendent; the Department of Parks, Recreation and Tourism field personnel in the State Parks Division; Director of Wil Lou Gray Opportunity School; President of the School for the Deaf and the Blind; houseparents for the Commission for the Blind; S.C. Department of Health and Environmental Control personnel at the State Park Health Facility and Camp Burnt Gin; Residence Life Coordinators at Lander University; Residence Life Directors at Winthrop University; Farm Superintendent at Winthrop University; Clemson University's Head Football Coach; the Department of Disabilities & Special Needs' physicians and other professionals at Whitten Center, Clemson University Off-Campus Agricultural Staff and Housing Area Coordinators; and University of South Carolina's Manager of Bell Camp Facility, Housing Maintenance Night Supervisors, Residence Life Directors, temporary and transition employees, and emergency medical personnel. Except in the case of elected officials, the fair market rental value of any residence furnished to a state employee shall be reported by the state agency furnishing the residence to the Agency Head Salary Commission, and the Division of Budget and Analyses by October 1, of each fiscal year.

All salaries paid by departments and institutions shall be in accord with a uniform classification and compensation plan, approved by the Budget and Control Board, applicable to all personnel of the State Government whose compensation is not specifically fixed in this act. Such plan shall include all employees regardless of the source of funds from which payment for personal service is drawn. The Division of Budget and Analyses of the Budget and Control Board is authorized to approve temporary salary adjustments for classified and unclassified employees who perform temporary duties which are limited by time and/or funds. When approved, a temporary salary adjustment shall not be added to an employee's base salary and shall end when the duties are completed and/or the funds expire. Academic personnel of the


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institutions of higher learning and other individual or group of positions that cannot practically be covered by the plan may be excluded therefrom but their compensations as approved by the Division of Budget and Analyses shall, nevertheless, be subject to review by the Budget and Control Board. Salary appropriations for employees fixed in this act shall be in full for all services rendered, and no supplements from other sources shall be permitted or approved by the State Budget and Control Board. With the exception of travel and subsistence, legislative study committees shall not compensate any person who is otherwise employed as a full-time state employee. Salaries of the heads of all agencies of the State Government shall be specifically fixed in this act and no salary shall be paid any agency head whose salary is not so fixed. Commuter mileage on non-exempt state vehicles shall be considered as income and reported by the Comptroller General in accordance with IRS regulations. As long as there is no impact on appropriated funds, state agencies and institutions shall be allowed to spend public funds and/or other funds for designated employee award programs which shall have written criteria approved by the agency governing board or commission. For purposes of this section, monetary awards, if any, shall not be considered a part of an employee's base salary, a salary supplement, or a perquisite of employment. The names of all employees receiving monetary awards and the amounts received shall be reported annually to the South Carolina Division of Budget and Analyses.

In the case of lodging furnished by certain higher education institutions to employees, the prevailing local rate does not apply if the institution meets the exceptions for inadequate rent described in the current Internal Revenue Code Section 119(d)(2). To meet the exception, rental rates must equal the lesser of five percent of the appraised value of the qualified campus lodging, or the average of the rentals paid by individuals (other than employees or students of the educational institution) during the calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over the rent paid by the employee for the qualified campus lodging during the calendar year. The appraised value shall be determined as of the close of the calendar year in which the taxable year begins, or, in the case of a rental period not greater than one year, at any time during the calendar year in which the period begins.

72.35.   (GP: Travel - Subsistence Expenses & Mileage) Travel and subsistence expenses, whether paid from state appropriated, federal,


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local or other funds, shall be allowed in accordance with the following provisions:

F.   No subsistence reimbursement shall be allowed to a Justice of the Supreme Court or Judge of the Court of Appeals while traveling in the county of his official residence. When traveling on official business of said court within 50 miles outside the county of his official residence, a Supreme Court Justice and a Judge of the Court of Appeals shall be allowed subsistence expenses in the amount of $35 per day plus such mileage allowance for travel as is provided for other employees of the State. When traveling on official business of said court 50 or more miles outside the county of his official residence, each Justice and Judge of the Court of Appeals shall be allowed subsistence expenses in the amount as provided in this act for members of the General Assembly plus such mileage allowance for travel as is provided for other employees of the State. The Chief Justice, or such other person as he the Chief Justice designates, while attending the Conference of Chief Justices and one member of the Supreme Court while attending the National Convention of Appellate Court Judges, and three Circuit Judges while attending the National Convention of State Trial Judges shall be allowed actual subsistence and travel expenses.

72.36.   (GP: Rental Charges, Collections State Offices) The Budget and Control Board is hereby directed to assess and collect a rental charge from all departments and agencies of the State Government occupying Budget and Control Board space in state-controlled office buildings. The amount charged each department or agency shall be calculated on a square foot, or other equitable basis of measurement, and at such rates as will yield sufficient total annual revenue to cover the annual principal and interest due or anticipated on the Capital Improvement Obligations for projects administered or planned by the Office of General Services, and maintenance and operation costs of Budget and Control Board-controlled office buildings under the supervision of the Office of General Services. The amount so collected shall be deposited in a special account and shall be expended only for payment on Capital Improvement Obligations and maintenance and operations costs of the buildings under the supervision of the Office of General Services.

All departments and agencies against which rental charges are assessed and whose operations are financed in whole or in part by federal and/or other nonappropriated funds are directed to apportion the payment of such charges equitably among all such funds, so that each shall bear its proportionate share.


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72.39.   (GP: Printing Costs Disclosure on State Publications) All agencies using appropriated funds shall print on the last page of all bound publications the following information:

(1)   Total printing cost

(2)   Total number of documents printed

(3)   Cost per unit

The President Pro Tempore of the Senate, the Speaker of the House, Legislative Printing, Information and Technology Systems, the presidents of each institution of higher education, and the State Board for Technical and Comprehensive Education may exempt from this requirement, documents published by their respective agencies. Agency publications which are produced for resale are also exempt from this requirement.

Publications of public relations nature, produced by Parks, Recreation and Tourism, and the Division of State Development are exempt from this requirement.

72.41.   (GP: Carry Forward) Each agency is authorized to carry forward unspent general fund appropriations from the prior fiscal year into the current fiscal year, up to a maximum of ten percent of its original general fund appropriations less any appropriation reductions for the current fiscal year. In addition, any remaining appropriation reduction account balances shall be returned to state agencies and carried forward into the current fiscal year in the event the total appropriation reduction amount exceeds the amount needed to avoid a general fund deficit in the prior fiscal year. Agencies shall not withhold services in order to carry forward general funds. This provision shall be suspended if necessary to avoid a fiscal year-end general fund deficit. For purposes of this proviso, the amount of the general fund surplus/deficit must be considered after all appropriations from the Capital Reserve Fund have been allowed and before any transfers from the General Reserve. The amount of general funds needed to avoid a year-end deficit shall be reduced proportionately from each agency's carry forward amount. Agencies which have separate general fund carry forward authority must exclude the amount carried forward by such separate authority from their base for purposes of calculating the ten percent carry forward authorized herein. Any funds that are carried forward as a result of this provision are not considered part of the base of appropriations for any succeeding years. Notwithstanding any other provision of law, state State agencies and institutions are allowed to spend carry-forward monies from the previous fiscal year so as to provide selected employees a one-time


Printed Page 2590 . . . . . Wednesday, May 14, 2003

lump sum bonus, not to exceed one two thousand dollars, based on objective guidelines established by the Budget and Control Board. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to respective retirement systems.

In addition, each agency is authorized to carry forward unspent funds set aside as a result of the Littlefield case. Any funds carried forward to pay former state employees for annual leave in excess of forty-five working days that was lost, should be used only for this purpose.

72.43.   (GP: Regulatory Audit) Each agency shall conduct a jurisdictional audit for the purpose of identifying laws, regulations and provisos which are not being used or no longer need to be regulated. After identifying these laws, repeals are to be drafted for submission to the appropriate standing committee of the General Assembly by January 31, 2003.

72.51.   (GP: Professional Dues) State agencies and institutions are prohibited from paying or reimbursing professional dues payments for individuals to the American Bar Association.

72.52.   (GP: Federal/Other Funded Employee Bonus) Notwithstanding any other provision of law, state agencies and institutions shall be allowed to spend federal and other sources of revenue to provide selected employees a one-time lump sum bonus not to exceed $1,000 based on objective guidelines established by the Budget and Control Board. Agencies affected by this proviso shall maintain documents verifying that the bonuses funded were from savings resulting from increased efficiency in their operations. Also, agencies using federal funds for the bonus must show that the use of these funds is in compliance with federal law. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to respective retirement systems.

72.54.   (GP: Joint Victim/Witness Personnel Services Study Committee) The Senate Finance Committee and the House Ways and Means Committee is directed to coordinate a panel to study publicly funded Victim Assistance/Victim Witness Services. The purpose of the Joint Committee is to monitor the implementation of findings and to study the other issues raised in the Joint/Witness Personnel Services Study. The panel shall consist of the following members: two from the Senate Finance Committee, two from the House Ways and Means Committee, two Governor's appointees, one of which is the Director of the Division of Victims' Assistance, one from the Attorney General's


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Office, one from the Department of Public Safety (Grants Administration), and one from the Department of Probation, Parole and Pardon Services. Ex-Officio members shall include the Governor's Advisory Victim Services Coordinating Committee who shall be non voting members.

72.56.   (GP: Aid to Subdivisions Withholding to Recover Charges) Any local government entity which demands payment of rent or lease payments from a state agency or institution, unless approved by that state agency, must have deducted from that local government's State Aid to Subdivisions allocation an amount equal to 110 percent of the amount charged. From the withheld allocation, the state agency must be reimbursed the actual amount paid and the balance must be credited to the General Fund of the State.

72.60.   (GP: State Agencies - Alternate Work Locations) It is the intent of the General Assembly to allow state agencies to use alternate work locations, including telecommuting, that result in greater efficiency and cost savings.

72.62.   (GP: Court Revenue Study) The Senate Finance Committee and the House Ways and Means Committee are directed to coordinate a panel to study statutory provisions for the distribution of revenue generated by the state's various courts. The purpose of the panel is to assess the effectiveness of existing processes and consider alternative methods of accounting for and distributing court fines and fees. In conducting this study, the panel may determine the amounts of court revenues distributed to various entities, however it is not the purpose of the panel to recommend changes to the existing distribution shares. The panel shall consist of the following members: one from the Senate Finance Committee, one from the House Ways and Means Committee, one Governor's appointee, one from the State Treasurer's Office, one from the Division of Court Administration, one from the State Auditor's Office, one from the Association of Counties, and one from the Municipal Association. Staff support shall be provided by the Senate Finance Committee, the House Ways and Means Committee, and the Division of Court Administration. The panel shall submit a report to the Governor, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee.

72.63.   (GP: Voluntary Separation Incentive Program) State agencies may implement, in consultation with the Office of Human Resources of the Budget and Control Board, a program to realign resources to include provisions for a separation incentive payment for employees which may include the employer portion of health and


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dental benefits not to exceed one year. Employees participating in such program shall not be eligible to participate in the Teacher and Employee Retention Incentive (TERI) program. Employees participating in such program shall be considered to have voluntarily quit their employment without good cause and be subject to the provisions of Section 41-35-120(1) of the S.C. Employment Security Law. Any program developed under this provision will involve voluntary participation from employees and will be funded within existing appropriations. The program must be approved by the agency head and the Director of the Division of Budget and Analyses based on ability to demonstrate recurring cost savings for realignment and/or permanent downsizing. State agencies shall report the prior year's results to the Budget and Control Board by August 15, of the current fiscal year. The Budget and Control Board shall report to the Senate Finance Committee and the House Ways and Means Committee on these results.

72.68.   (GP: Accrual Accounting) In addition to those taxes and fees subject to accrual accounting pursuant to Section 11-9-85 of the 1976 Code, the revenues of the deed recording fee imposed pursuant to Chapter 24, Title 12 of the 1976 Code must be similarly accrued for accounting purposes.

72.69.   (GP: Federal Matching Funds) All state agencies shall conduct a study to determine what federal matching funds are or may be available to the agency and shall report its findings to the Senate Finance Committee and the Ways and Means Committee before October 1, 2002 2003.

72.71.   (GP: Audits of County Records) The council shall provide for an independent annual audit of all financial records and transactions of the county and an agency funded in whole by county funds and may provide for more frequent audits as it considers necessary. Special audits may be provided for an agency receiving any portion of its funding from county funds as the county governing body considers necessary. The audits must be made by a certified public accountant or public accountant or firm of these accountants who have no personal interest, direct or indirect, in the fiscal affairs of the county government or its officers. Without requiring competitive bids, the council may designate the accountant or firm annually or for a period not exceeding one year. The designation for a particular fiscal year must be made no later than thirty days after the beginning of the fiscal year. The report of the audit must be made available for public inspection. A copy of the report of audit must be submitted to the Comptroller General no


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later than January first each year following the close of the books of the previous fiscal year; except that the Comptroller General may extend the time for good cause. If the report is not timely filed, including any extension, funds distributed by the Comptroller General to the county in the current fiscal year must be withheld pending receipt of a copy of the report.

72.75.   (GP: Deferred Compensation Loan) An employee participating in any plan under the Deferred Compensation Program may repay a plan loan made by the employee through payroll deductions from the employee's compensation.

72.76.   (GP: MIS Cost Savings) The Budget and Control Board must contract for a feasibility study for the development of a Health and Human Services Enterprise IT System. The study must determine the functionality, features, architectural design, and costs associated with developing an integrated enterprise-wide system for assessing all health related data and information across state health agencies. The goal of the system is to add operational efficiencies, reduce redundant IT costs, and to enable state health agencies to deliver client services in a more focused, efficient, and cost-effective manner. A priority area for the integrated enterprise system is eligibility determination and coordination. The board is authorized to charge agencies for all costs associated with the study. The following agencies are directed to cooperate and participate in the study: the Departments of Health and Human Services, Mental Health, Disabilities and Special Needs, Health and Environmental Control, Social Services, Alcohol and Other Drug Abuse Services, Vocational Rehabilitation and the Commission for the Blind. The study must be provided to the Governor and the Chairmen of the Senate Finance and House Ways and Means Committees no later than January 10, 2003.

72.79.   (GP: Healthcare Tobacco Settlement Trust Fund Transfer) Notwithstanding any other provision of law, for FY 2002-2003 only, and contingent upon the approval of the Tobacco Settlement Revenue Management Authority and parties to the trust agreement, an amount equal to $101 million must be transferred from the unrestricted taxable proceeds portion of the principal of the Healthcare Tobacco Settlement Trust Fund established pursuant to Section 11-11-170(B)(1) of the 1976 Code to the following agency and used for the purposes stated: J12-Department of Mental Health: $4,000,000; and J02-Department of Health and Human Services: $97,000,000 to be expended for Medicaid and up to $7,500,000 needed to continue the nursing home rate increases made possible by the annual franchise fee on nursing homes


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implemented by the joint resolution of 2002 bearing ratification number 176. The joint resolution of 2002, which imposed an annual franchise fee on nursing homes and bearing ratification number 176 is repealed. The State's CIO is authorized to charge state agencies in Sections 7, 8, 9, 10, 11, 12, 13, and 14 for the implementation of an Integrated Health and Human Services Management Information System Plan after approval of the Budget and Control Board.

72.80.   (GP: Redirect Funds) Recognizing the fiscal difficulties facing South Carolina for the current Budget year, the General Assembly intends to exercise its authority to redirect an amount of funds equivalent to the interest accrued or accruing on the herein named restricted accounts held by agencies of state government. Amounts transferred pursuant to this paragraph represent funds equivalent to the interest accrued or accruing only on state fund balances in restricted accounts and if it is determined that any portion of the amount transferred is attributable to federal dollars that amount must be made up from the state fund restricted fund balance. Notwithstanding any other provisions of law, the State Treasurer shall transfer funds to the General Fund from the following accounts: Governor's Office - Office of Executive Policies & Programs: $79,485 must be transferred to the General Fund from Subfund 4649 USDA-TLAP; Governor's Office - Office of Executive Policies & Programs: $1,801 must be transferred to the General Fund from Subfund 4892 Legacy Trust Fund; State Treasurer's Office: $1,250 must be transferred to the General Fund from Subfund 4066 Disaster Trust Fund; State Treasurer's Office: $892,569 must be transferred to the General Fund from Subfund 4070 SC Housing Trust Fund; State Treasurer's Office: $596,616 must be transferred to the General Fund from Subfund 43A8 Barnwell Economic Dev Fd; State Treasurer's Office: $164,114 must be transferred to the General Fund from Subfund 4455 SVA Cumulative Snkg Fd 88; State Treasurer's Office: $66,074 must be transferred to the General Fund from Subfund 4557 SVA Special Tax Fund 1988; State Treasurer's Office: $21,125 must be transferred to the General Fund from Subfund 4612 Asbestos Expense Trust; State Treasurer's Office: $1,278,710 must be transferred to the General Fund from Subfund 4694 Loan Fund-St. Ed Ast Auth; State Treasurer's Office: $48,711,248 must be transferred to the General Fund from Subfund 4693 Atmc Wste Brl Fd-Chm Nclr; State Treasurer's Office: $10,078 must be transferred to the General Fund from Subfund 4731 General Ser Ds-Gen Fund; State Treasurer's Office: $3,188 must be transferred to the General Fund from Subfund


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4732 General Ser Ds-Ins Res Fund; State Treasurer's Office: $163,568 must be transferred to the General Fund from Subfund 4843 Local Option Sales Tax; State Treasurer's Office: $4,761 must be transferred to the General Fund from Subfund 4895 Confiscated Cash; State Treasurer's Office: $470,345 must be transferred to the General Fund from Subfund 4955 911 Phone Surcharge; Commission on Indigent Defense: $78,553 must be transferred to the General Fund from Subfund 4313 Indigent Def Services Fund; Budget and Control Board: $1,737 must be transferred to the General Fund from Subfund 4153 Funded Debt-Sinking Fund; Budget and Control Board: $54,717 must be transferred to the General Fund from Subfund 4154 Ordinary Sinking Fund; Budget and Control Board: $22,937,800 must be transferred to the General Fund from Subfund 4161 Insurance Reserve Fund Trust; Budget and Control Board: $5,374 must be transferred to the General Fund from Subfund 4190 Fed Surplus Property Fd; Budget and Control Board: $2,099,594 must be transferred to the General Fund from Subfund 4202 State Life & Ltd; Budget and Control Board: $824,318 must be transferred to the General Fund from Subfund 4343 SC Infrastructure Loan Fund; Budget and Control Board: $11,066 must be transferred to the General Fund from Subfund 4821 PVE-First Stage Restitution; Dept. of Health & Human Services: $61,724 must be transferred to the General Fund from Subfund 4176 Nursing Home Sanctions; Dept. of Health & Human Services: $223,942 must be transferred to the General Fund from Subfund 4508 Sr Cit Ctrs Perm Imp Fund; Dept. of Health & Environmental Control: $541,329 must be transferred to the General Fund from Subfund 4545 Waste Tire Grant Trust Fund; Dept. of Health & Environmental Control: $280,891 must be transferred to the General Fund from Subfund 4546 Petroleum Fund; Dept. of Health & Environmental Control: $942,290 must be transferred to the General Fund from Subfund 4641 Haz Waste-Permitted Site Fd; Dept. of Health & Environmental Control: $103,919 must be transferred to the General Fund from Subfund 4865 Solid Waste Mgmt Trust Fund; Dept. of Health & Environmental Control: $154,266 must be transferred to the General Fund from Subfund 4906 Superb Fin Responsibility; Dept. of Health & Environmental Control: $21,414 must be transferred to the General Fund from Subfund 4971 Infectious Waste Contingency Fd; Dept. of Health & Environmental Control: $4,773 must be transferred to the General Fund from Subfund 4977 Infectious Waste Cnty Entitle Fd; Dept. of Health & Environmental Control: $941,340 must be transferred to the General Fund from Subfund 4984 SUPERB Account; Dept. of Alcohol & Other

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Drug Abuse Services: $9,919 must be transferred to the General Fund from Subfund 4784 Revolving Loan Fund; Dept. of Public Safety: $70,904 must be transferred to the General Fund from Subfund 4547 Uninsured Enforcement Fund; Housing Finance & Development Authority: $1,617,784 must be transferred to the General Fund from Subfund 4797 SHA Program Fund; Dept. of Agriculture: $241,499 must be transferred to the General Fund from Subfund 4308 Whse Receipts Guarantee; Dept. of Agriculture: $269,410 must be transferred to the General Fund from Subfund 4358 Grain Producers Guaranty Fund; Dept. of Natural Resources: $16,913 must be transferred to the General Fund from Subfund 4189 SC Aquatic Plant Man Tr Fd; Dept. of Natural Resources: $9,794 must be transferred to the General Fund from Subfund 4373 Nongame Wildlife & Natural Areas; Dept. of Natural Resources: $439,291 must be transferred to the General Fund from Subfund 4395 Mitigation Trust Fund; Dept. of Natural Resources: $212,643 must be transferred to the General Fund from Subfund 4520 Heritage Land Trust Fund; Dept. of Natural Resources: $17,002 must be transferred to the General Fund from Subfund 4795 Jocassee Gorges Trust Fund; Dept. of Parks, Recreation & Tourism: $276,379 must be transferred to the General Fund from Subfund 4126 PRT Development Fund; Dept. of Parks, Recreation & Tourism: $159,337 must be transferred to the General Fund from Subfund 4278 Recreation Land Trust; Dept. of Parks, Recreation & Tourism: $41,334 must be transferred to the General Fund from Subfund 4279 Gifts & Endowments Trust; Patriots Point Development Authority: $14,225 must be transferred to the General Fund from Subfund 4049 Donations-Restricted; Patriots Point Development Authority: $59,842 must be transferred to the General Fund from Subfund 4133 Admissions Revenue; State Accident Fund: $1,769,012 must be transferred to the General Fund from Subfund 4033 Workers' Comp Fund-Trust; State Accident Fund: $22,257 must be transferred to the General Fund from Subfund 4168 Escrow Funds; Patients' Compensation Fund: $1,499,559 must be transferred to the General Fund from Subfund 4484 Patients Compensation Fund; Dept. of Labor, Licensing, & Regulation: $7,982 must be transferred to the General Fund from Subfund 4592 Auctioneer Recovery Fund; Public Railways Commission: $129,804 must be transferred to the General Fund from Subfund 4813 E Cooper & Berkeley RR; Public Railways Commission: $245,277 must be transferred to the General Fund from Subfund 4814 Operating & Maintenance; and Public Railways Commission: $26,591 must be transferred to the General Fund from

Printed Page 2597 . . . . . Wednesday, May 14, 2003

Subfund 4816 Capital Improvement. In order to provide maximum flexibility to maintain critical programs, for these transfers identified above to the general fund, an agency may, in lieu of the specific accounts identified above, opt to transfer an equal amount of funds from any agency earmarked or restricted account designated as "special revenue funds" as defined by the Comptroller General's records.

72.81.   (GP: Statewide Funding) The sources of general fund revenues appropriated in this provision are as follows: E16-State Treasurer's Office: $3,400,000 must be transferred to the general fund from Unclaimed Property Subfund 3879; E16-State Treasurer's Office: $5,000,000 must be transferred to the general fund from 911 Phone Surcharge Subfund 4955; E16-State Treasurer's Office: $2,000,000 must be transferred to the general fund from Governor's Teaching School Loan Program Subfund 4019; F03-Budget and Control Board: $2,000,000 must be transferred to the general fund from State Life & LTD Subfund 4202; Y14-Ports Authority: $1,300,000 must be transferred to the general fund from funds held by the State Treasurer for the disposal of fill material from the Daniel Island Harbor Deepening Project; Y08-Public Railways Commission: $2,000,000 must be transferred to the general fund from E Cooper & Berkeley RR Subfund 4813; Y08-Public Railways Commission: $500,000 must be transferred to the general fund from operating and maintenance Subfund 4814; and R04-Public Service Commission: $1,400,000 must be transferred to the general fund. Notwithstanding any other provision of law restricting the use of earned revenue, the Public Service Commission, in order to provide maximum flexibility in absorbing this transfer, is authorized for FY 2002-03 to spend from agency earmarked or restricted accounts an amount equal to this transfer. The above listed funds are transferred to the General Fund of the State, and by this provision, these transfers are deemed to have occurred and, notwithstanding any other provision of law, these general fund revenues are available for appropriation as provided in this paragraph. Any restrictions concerning specific utilization of these funds are lifted for the specified fiscal year. From the revenue sources previously identified, there is appropriated or transferred for the fiscal year beginning July 1, 2002, and ending June 30, 2003, from the General Fund of the State, the following sums for the purposes stated: F03-Budget and Control Board: Baldrige Training $75,000; H03-Commisison on Higher Education: Leadership Center Annualization $50,000; H63-Department of Education: Education Finance Act $12,975,000; and P28-Department of Parks, Recreation and Tourism:


Printed Page 2598 . . . . . Wednesday, May 14, 2003

Advertising/Repay Loan $4,500,000. The appropriations in this provision are contingent and therefore all items are to be funded on a pro-rata basis should revenue fall below the anticipated amount. Unexpended funds appropriated pursuant to this part may be carried forward to succeeding fiscal years and expended for the same purposes. No appropriation in this provision may be paid before the later of September 1, 2002, or the date the Comptroller General closes the state's books on Fiscal Year 2001-02. Due to unanticipated costs associated with the legal defense of reapportionment legislation and other civil litigation and the resulting impact on the budgets of the House and the Senate, the Budget and Control Board is directed to transfer the amount of $1.3 million from Board reserve accounts to A01 Senate reserve account and the amount of $1.3 million from Board reserve accounts to A05 House revenue reserve account. The Comptroller General shall establish expenditure authorization for the amount transferred. The Budget and Control Board is required to suspend the payment of annual premiums for all Insurance Reserve Fund insurance lines that would otherwise be paid by State agencies as defined in by this proviso during Fiscal Year 2002-03. This suspension of annual renewal premium applies to coverages that were in effect in Fiscal Year 2001-02 and would be subject to renewal in Fiscal Year 2002-03. Any new coverages or additional coverages insured with the Insurance Reserve Fund during FY 2002-03 are subject to premium collection. Each state agency, as so classified by the Insurance Reserve Fund for purposes of providing insurance, is directed to remit the amount of premium savings, as reported by the Insurance Reserve Fund, to the Budget and Control Board for deposit in an account established by the State Treasurer to the credit of the general fund. Each state agency is authorized to use funds from any revenue source except federal funds for this payment. Section 1-1-1020 (B) and (C) of the South Carolina Code of Laws, as amended, is suspended. By this provision, these remittances are deemed to have occurred and be available for appropriation in the amount of $27,900,000. In order to provide maximum flexibility to maintain critical programs, for these transfers identified above to the general fund, an agency may, in lieu of the specific accounts identified above, opt to transfer an equal amount of funds from any agency earmarked or restricted account designated as "special revenue funds" as defined by the Comptroller General's records. From the amount recouped from state agencies and transferred to the general fund pursuant to this proviso, there is appropriated for the fiscal year beginning July 1, 2002 and ending June 30, 2003, the

Printed Page 2599 . . . . . Wednesday, May 14, 2003

following sums for the stated purposes: H03-Commission on Higher Education: GEAR-UP Non-Recurring Funding $600,000; H27-University of South Carolina-Columbia: Materials Research Science & Engineering Center (Nano Technology) $1,000,000; H63-Department of Education: Education Finance Act $25,700,000; P32-Department of Commerce: SEUS International Trade Show $600,000.

72.82.   (GP: SC Adoptions Procedures Study Committee) There is created the South Carolina Adoptions Procedures Study Committee to review South Carolina adoption processes and procedures for the purpose of strengthening the integrity of adoptions. The committee shall be comprised of: two senators, appointed by the President Pro Tempore of the Senate, who shall serve ex officio; two representatives, appointed by the Speaker of the House of Representatives, who shall serve ex officio; a county director of the Department of Social Services, appointed by the Director of the Department of Social Services; an adoptive parent or interested citizen, appointed by the Governor; an adoption administrator of the Department of Social Services, appointed by the Director of the Department of Social Services; an attorney in private practice, appointed by the Governor on the recommendation of the President of the South Carolina Bar Association; a family court judge, appointed by the Chief Justice of the South Carolina Supreme Court; an attorney with the Department of Social Services, appointed by the Director of the Department of Social Services; the Director of the Foster Care Review Board; a member of a local foster care review board, appointed by the Governor; the Director of the South Carolina Guardian ad Litem Program; the Director of the Richland County Guardian ad Litem Program; and a representative of a private adoption agency, appointed by the Governor.

The committee's review shall include, but is not limited to, what effect a voluntary relinquishment of parental rights should have on a parent's duty to pay child support before the adoption is finalized and in whose custody is a child whose parents' voluntary relinquishment of parental rights was obtained by a private attorney. The committee's review shall further include, but is not limited to, issues concerning the necessity of a putative father registry and problems relating to adoption subsidies, parental consent requirements, relinquishment of parental rights issues, licensing of persons facilitating adoptions, providing adequate notice of hearings to foster parents regarding their foster child and providing them with an opportunity to address the court, and the length of time required for foster parents to complete an adoption.


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The members of the committee may not receive compensation but are entitled to receive mileage, per diem, and subsistence, from approved accounts of the House of Representatives and the Senate, as provided by law for members of state boards, committees, and commissions.

The committee must be staffed by personnel as provided and assigned by the President Pro Tempore of the Senate, by the Speaker of the House of Representatives, and by the Governor.

The committee shall submit a report containing its findings and recommendations to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives before January 1, 2003. Upon submission of the report the committee is abolished.

72.83.   (GP: Accommodations Tax) For Fiscal Year 2002-2003 the current fiscal year the word 'tourist', as used in Section 6-4-10, does not apply to museums or to festivals, arts and cultural events, or the sponsoring organization of these events.

72.85.   (GP: School Choice Programs) The State Department of Education is directed to conduct a study of the feasibility of using funding provided by the U.S. Department of Education's Magnet Schools Assistance Program to strengthen school choice programs in South Carolina and report back to the General Assembly by December 1, 2002.

72.88.   (GP: Children's Study Committee) There is created a study committee to review, assess, and evaluate the current system of care for children. The Committee is composed of the following members: two members appointed by the President Pro Tempore of the Senate, two members appointed by the Speaker of the House, and three members appointed by the Governor, one of whom must be a family member of a disabled child or consumer of disability services. The Governor shall designate one of his appointees to serve as Chairperson of the Committee. Committee members shall serve without pay.

The committee shall (1) review and assess all laws of the state that bear upon the current delivery system; (2) identify any systemic problems and gaps in the delivery of services to children resulting from the statutory organization of services; (3) compare the systems of care and services for children of other states to that of South Carolina; and (4) determine the standards of best practices which are available for children's care and services in South Carolina.

The Committee must make specific recommendations to the Governor and General Assembly pertaining to any reorganization of children services, changes in statutes and policies, and reallocation of


Printed Page 2601 . . . . . Wednesday, May 14, 2003

funding which would provide better coordination of services, promote greater efficiency and cost effectiveness in service delivery, maximize the utilization of federal and other sources of funding, and eliminate duplication of services. A report of the committee's recommendations shall be submitted to the Governor, Senate Finance and the Ways and Means Committee by January 15, 2003.

Professional and clerical staff for the committee must be provided jointly by the staffs of the Governor's Office, Senate, and House of Representatives. In addition, staffs of the following state agencies are to provide support staff or any other assistance deemed necessary by the Committee to carry out its duties and responsibilities: Continuum of Care, the Departments of Social Services, Disabilities and Special Needs, Mental Health, Education and Juvenile Justice.

72.89.   (GP: Restore Barnwell Funding) It is the intent of the General Assembly, that beginning in Fiscal Year 2003-04 2004-05 the General Assembly shall begin to restore funding to the Extended Care Maintenance Fund as defined in Section 13-7-10 by appropriating $5,000,000 each year until such time as the amount in the Fund is restored to the FY 2000-01 level, plus interest. If at any time the Extended Care Maintenance Fund is insufficient due to a reduction in funding in the Fiscal Year 2001-2002 and/or 2002-2003 appropriations bill to cover the costs of the uses of the fund, the State shall be solely and exclusively responsible for repaying an amount to restore funding to the Extended Care Maintenance Fund.

72.97.   (GP: DMV/County Treasurer's Study) The Budget and Control Board, in conjunction with the Association of Counties and the Director of the Department of Public Safety, shall study the method used by county treasurers to communicate with the Division of Motor Vehicles of the Department of Public Safety regarding non-payment of property taxes on a motor vehicle. The Director of the Department of Public Safety shall lead the study which shall include, but not be limited to, the feasibility of electronic communication between the entities for motor vehicle law enforcement purposes. A report shall be submitted to the Governor, the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee by January 30, 2004.

72.98.   (GP: DMV Data) The Department of Public Safety shall provide access, in compliance with all state and federal privacy protection statues, to the following data and reports without charge to the South Carolina Department of Transportation:

(1)   all collision data and collision reports;


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(2)   registration information used for toll enforcement; and

(3)   driver records of employees or prospective employees.

72.99.   (GP: Administrative Hearings) Any administrative state agency performing administrative hearings within the State of South Carolina may make use of existing video conferencing capabilities. There must be evidence that a cost savings will be recognized by using video conferencing, as opposed to holding an administrative hearing where all parties must be in attendance at one particular location. A report of video conferencing activities and any related cost savings must be submitted annually, before January 15, to the House Ways and Means Committee and the Senate Finance Committee.

72.100.   (GP: Fee for Motions Disbursement) For Fiscal Year 2003-04, the revenue collected pursuant to Section 8-21-320 of the 1976 Code shall be distributed by the State Treasurer in the following manner: (1) The first $300,000 of these funds must be transferred to the Prosecution Coordination Commission. The funds shall be distributed equally to the third and eleventh judicial circuits to fund drug courts. (2) Any remaining funds must be transferred to the Judicial Department for operating purposes.

72.101.   (GP: Parking Fees) State agencies shall not impose additional parking fees or increases in current fees for state employees during Fiscal Year 2003-04.

72.102.   (GP: RIF-Break in Service) Notwithstanding any other provision of law, any state employee who is terminated as a result of an agency reduction in force caused by a mandated reduction in the agency budget who is subsequently re-employed in state government within a two-year period must have his state employment benefits calculated as if there had been no break in state service. After re-employment an employee has the option to purchase the retirement service credit for this period of time as an approved leave of absence. Within thirty days of being re-employed, an employee also has the option to repurchase from the hiring agency any or all of the leave previously paid to the employee at the same per-day rate as the former employee was compensated.

SECTION 73 - X91

73.1.   (Year End Expenditures) Unless specifically authorized herein, the appropriations provided in Part I of this Act as ordinary expenses of the State Government shall lapse on July 31, 2003 2004. State agencies are required to submit all current fiscal year input documents to the Comptroller General's Office by July 18, 2003 16, 2004. Appropriations for Permanent Improvements, now outstanding


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or hereafter provided, shall lapse at the end of the second fiscal year in which such appropriations were provided, unless definite commitments shall have been made, with the approval of the State Budget and Control Board and Joint Bond Review Committee, toward the accomplishment of the purposes for which the appropriations were provided. Appropriations for other specific purposes aside from ordinary operating expenses, now outstanding or hereafter provided, shall lapse at the end of the second fiscal year in which such appropriations were provided, unless definite commitments shall have been made, with the approval of the State Budget and Control Board, toward the accomplishment of the purposes for which the appropriations were provided.

73.__   (Temporary Sales Tax, Income Tax, Special Homestead, and Cigarette Tax provisions)   A.(1) For the tax year beginning after 2002:

(a) for returns filed and reporting taxable income equal to or less than fifteen thousand dollars, no tax shall be due; and

(b) for returns filed and reporting taxable income in excess of fifteen thousand dollars, a tax equal to seven percent of the taxable income is imposed on the South Carolina taxable income reported of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under the corporate income tax, the income tax for exempt organizations and cooperatives, and corporations exempt from either of the foregoing.

(2) The department may prescribe tax tables consistent with the rates set pursuant to subsection (1).

B.   For the tax year beginning after 2002, a maximum rate of five percent of South Carolina taxable income applies to income received by or attributed to a taxpayer as a result of the taxpayer's status as a:

(1) sole proprietor of a business;

(2) shareholder of a subchapter 'S' corporation;

(3) partner in a partnership; or

(4) member of a limited liability company.

The special rate allowed by this section does not apply for a guaranteed payment to a partner for personal service rendered by the partner for the partnership. Any credits allowed or authorized under law which are credits against the taxes imposed pursuant to Item A of the section also apply to the tax imposed in this item.

C.   (1) Effective July 1, 2003 through June 30, 2004, in addition to the tax imposed, there is levied, assessed, collected, and paid upon all cigarettes made of tobacco or any substitute for tobacco, an additional


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license tax equal to 2.65 cents on each cigarette made of tobacco or any substitute for tobacco. The amount imposed pursuant to this section must be reported, paid, collected, and enforced in the same manner as the license tax currently imposed.

(2) There is created in the state treasury the Medicaid Match Fund. The revenue of the tax imposed pursuant to this section must be credited to the Medicaid Match Fund. This fund must be separate and distinct from the general fund of the State. Monies in the fund must be appropriated to and used by the Department of Health and Human Services solely as the state match for federal Medicaid funding. The fund is exempt from any budgetary cuts or reductions which result form or which are required by statute when there is a decrease or shortfall in estimated general fund revenues. Earnings on investments of monies in the fund must be credited to the fund and used for the same purposes as other monies in the fund.

D.   Effective January 1, 2004 through June 30, 2004, the license taxes imposed on cigarettes by this section must be paid by affixing stamps to each individual package in the manner and at the time set forth in this section. A stamp evidencing the taxes imposed may not be of a denomination of less than one cent and whenever the tax computed at the rate prescribed is a specified amount plus a fractional part of one cent, the package must be stamped for the next full cent. The Department of Revenue may authorize wholesale dealers in cigarettes to store cigarettes intended to be sold and shipped out of this State in separate compartments of their business without affixing revenue stamps. However, a wholesale dealer making shipments of cigarettes to locations out of this State shall apply to the department for a license that allows the wholesale dealer to maintain the separate compartments authorized by this item. A wholesale dealer in cigarettes violating the rules and regulations permitting the storage of cigarettes without affixing the stamps is liable for the penalties established for a violation of the license tax law. The stamps must be affixed to each individual package by wholesalers within seventy-two hours after the products are received by them and by retailers within twenty-four hours of receipt by them of these products. In all cases, these goods must be stamped before being sold. Cigarettes manufactured within the State and sold directly to consumers must be stamped by the manufacturer when and as sold. Each person or distributor of taxable cigarettes first receiving untaxed cigarettes for sale or distribution in this State is subject to the taxes imposed by law governing tax on tobacco products. Each person or distributor required to pay the taxes by affixing stamps must also


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make a report to the department, in the form and manner prescribed by the department, of all cigarettes and cigarette tax stamps in inventory at the beginning and end of the month, all cigarettes and cigarette tax stamps purchased during the month, all cigarettes disposed of in this State during the month, and other information required by law or considered necessary by the department. If the report indicates that the person or distributor did not stamp all cigarettes disposed of, the person or distributor shall pay the additional taxes with the report. The report and taxes, if any additional taxes are due with the report, are due no later than the twentieth day of the month next succeeding the month of the purchase or disposition. Cigarettes held in inventory on January 1, 2004, by the person or distributor who first received the cigarettes into this State must be stamped as provided by this section. Credit must be allowed for any taxes previously paid on the cigarettes. The Department may retain a portion of the collections resulting from the administration of the tax stamp, not to exceed three hundred thousand dollars, to defray the cost of material and supplies.

E.   Except for food items eligible for purchase with United States Department of Agriculture food coupons, on and after July 1, 2003 and continuing through June 30, 2004, a sales tax, equal to seven percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail.

F.   (1) On and after July 1, 2003 and continuing through June 30, 2004, (a) a sales tax equal to nine percent is imposed on the gross proceeds derived from the rental or charges for any rooms, campground spaces, lodgings, or sleeping accommodations furnished to transients by any hotel, inn, tourist court, tourist camp, motel, campground, residence, or any place in which rooms, lodgings, or sleeping accommodations are furnished to transients for a consideration. This tax does not apply where the facilities consist of less than six sleeping rooms, contained on the same premises, which is used as the individual's place of abode. The gross proceeds derived from the lease or rental of sleeping accommodations supplied to the same person for a period of ninety continuous days are not considered proceeds from transients. The tax imposed by this subsection (a) does not apply to additional guest charges as defined in subsection (b).

(b) A sales tax of seven percent is imposed on additional guest charges at any place where rooms, lodgings, or accommodations are furnished to transients for a consideration, unless otherwise taxed under


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this chapter. The term additional guest charges includes, but is not limited to:

(i) room service;

(ii) amenities;

(iii) entertainment;

(iv) special items in promotional tourist packages;

(v) laundering and dry cleaning services;

(vi) in-room movies;

(vii) telephone charges;

(viii) rentals of meeting rooms; and

(ix) other guest services.

(2) Real estate agents, brokers, corporations, or listing services required to remit taxes under this section shall notify the department if rental property, previously listed by them, is dropped from their listings.

(3) When any business is subject to the sales tax on accommodations and the business has more than one place of business in the State, the licensee shall report separately in his sales tax return the total gross proceeds derived from business done within and without the corporate limits of municipalities. A taxpayer who owns or manages rental units in more than one county or municipality shall report separately in his sales tax return the total gross proceeds from business done in each county or municipality.

(4) The taxes imposed by this section are imposed on every person engaged or continuing within this State in the business of furnishing accommodations to transients for consideration."

G.   (1) Effective July, 2003 through June 30, 2004 each retailer may add to the sales price as a result of the seven percent state sales tax:

(a) no amount on sales of ten cents or less;

(b) one cent on sales of eleven through twenty-five cents;

(c) two cents on sales of twenty-six through forty cents;

(d) three cents on sales of forty-one through fifty-five cents;

(e) four cents on sales of fifty-sixty through seventy cents;

(f) five cents on sales of seventy-one cents through eighty-five cents;

(g) six cents on sales of eighty-six cents through ninety cents;

(h) seven cents on sales of ninety cents through one dollar; and

(i) one cent additional for each fifteen cents or major fraction of it over one dollar.

(2) The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect them from the purchaser does not relieve the taxpayer from the tax levied by this article.


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(3) For purposes of the state sales tax on accommodations and applicable combined state sales and local tax for counties imposing a local sales tax collected by the department on their behalf, retailers may add to the sales price an amount equal to the total state and local sales tax rate times the sales price. The amount added to the sales price may not be less than the amount added pursuant to subsection (1). In calculating the tax due, retailers may round a fraction of more than one-half of a cent to the next whole cent and a fraction of a cent of one-half or less must be eliminated. The inability, impracticability, refusal, or failure to add the tax to the sales price as allowed by this subsection and collect them from the purchaser does not relieve the taxpayer of his responsibility to pay tax.

H.   Effective July 1, 2003 and continuing through June 30, 2004, a use tax is imposed on the storage, use, or other consumption in this State of tangible personal property purchased at retail for storage, use, or other consumption in this State, at the rate of seven percent of the sales price of the property, regardless of whether the retailer is or is not engaged in business in this State.

I.   Effective July 1, 2003 and continuing through June 30, 2004, the rate of tax imposed on transient construction property shall be seven percent.

J.   For Fiscal Year 2003-2004, in addition to the sales of items taking place during a period beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday which are exempt from imposition of the sales tax, the sale of reading glasses and prescription glasses shall also be exempt from the imposition of the sales tax during this same period.

K.   Effective July 1, 2003 and continuing through June 30, 2004, in addition to all other fees prescribed by law there is imposed an excise tax for the issuance of every certificate of title, or other proof of ownership, for every motor vehicle, motorcycle, boat, motor, or airplane, required to be registered, titled, or licensed. The tax is seven percent of the fair market value of the motor vehicle, motorcycle, airplane, boat, and motor.

L.   For Fiscal Year 2003-2004 the additional sales and use tax imposed by this section must be credited to the general fund.

M.   The sales and use taxes imposed by law also extend to gross proceeds accruing or proceeding from the business of providing 900/976 telephone service except that the applicable rate of the tax is twelve percent. All revenues derived from the tax imposed by this section must be credited to the general fund of the State.


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N.   The Department of Revenue is authorized to publish necessary administrative guidelines as are necessary for the efficient administration of this section.

O.   Effective July 1, 2003 and continuing through June 30, 2004, the gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this section, 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 for in this section if a verified copy of the contract is filed with the South Carolina Department of Revenue within six months after the imposition of the sales and use tax under this section.

P.   During Fiscal Year 2003-2004, the payment of license tax on cigarettes by reporting method shall change to the tax stamp method effective January 1, 2004.

Q.   For the tax year beginning after 2002, the homestead tax exemption for taxpayers sixty-five and over or those totally and permanently disabled or legally blind is increased to fifty-five thousand dollars.

R.   The provision of this section take effect upon approval of the governor and are effective for Fiscal Year 2003-2004. /

SECTION 2.   This act takes effect upon approval by the Governor. //

Renumber sections to conform.

Amend title and totals and Section 71 to conform.

Senator MOORE argued in favor of the adoption of the amendment.

Point of Quorum

At 3:05 P.M., Senator DRUMMOND made the point that a quorum was not present. It was ascertained that a quorum was present.
The Senate resumed.

Senator MOORE argued in favor of the adoption of the amendment.

Point of Order

Senator MARTIN raised a Point of Order that the amendment was out of order inasmuch as it was violative of Rule 24A.

Senators MOORE, HUTTO and McCONNELL spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.


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Amendment No. 206A was ruled out of order.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 5A.27 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 5A, COMMISSION ON HIGHER EDUCATION, page 370, beginning on line 16, by striking Proviso 5A.27 and inserting:

/     5A.27.   (CHE: Research Universities Matching Resources) Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50 of the 1976 Code, to meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided for below that are derived from private, federal, municipal, county, or local government sources, excluding state appropriations to the institution, tuition or fees. Subject to the restrictions below and outlined herein, only federal dollars received during the current fiscal year may be used to meet the endowed professorships matching requirement. Provided further, that such matching funds may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other such sciences and research that create well-paying jobs and enhanced economic opportunities for the people of South Carolina and that are approved by the Centers of Research Excellence Review Board.     /

The PRESIDENT sustained the Point of Order.

Proviso 5A.27 was ruled out of order.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 5A.30 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 5A, COMMISSION ON HIGHER EDUCATION, page 370, after line 34, by adding Proviso 5A.30 to read:

/       5A.30.   (CHE: Antenna and Tower Placement) Notwithstanding any other provision of law, all leases for antenna and tower operations within institutions of higher learning campuses must


Printed Page 2610 . . . . . Wednesday, May 14, 2003

conform to the present and any future master plans for such property, as determined solely by the institution of higher learning.     /

The PRESIDENT sustained the Point of Order.

Proviso 5A.30 was ruled out of order.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 21.6 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 21, FORESTRY COMMISSION, page 400, after line 21, by adding Proviso 21.6 to read:

/     21.6.   (FC: Personnel Procedures) Notwithstanding any other provision of law, and in an effort to better manage human resources statewide, the hiring, retention, and dismissal of all employees of the Forestry Commission, who are covered by the State Employee Grievance Procedure Act, will be at the direction of the agency director.     /

The PRESIDENT sustained the Point of Order.

Proviso 21.6 was ruled out of order.

Objection

Senator RICHARDSON asked unanimous consent to make a motion to take up Amendment No. 201 for immediate consideration.

Senator HUTTO objected.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 24.17 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 24, DEPARTMENT OF NATURAL RESOURCES, page 405, after line 21, by adding Proviso 24.17 to read:

/     24.17.   (DNR: Failure to Pay Fines) Upon the issuance of a bench warrant by a court for a person convicted of a charge brought by the Department of Natural Resources who has failed to pay a fine or restitution, the department must suspend the hunting, fishing, and boating privileges and all licenses, permits, stamps, tags, and


Printed Page 2611 . . . . . Wednesday, May 14, 2003

registrations issued to the individual. Upon payment of the fine or restitution and payment of the reinstatement fee, the suspension for failure to pay shall end.     /

The PRESIDENT sustained the Point of Order

Proviso 24.17 was ruled out of order.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 24.18 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 24, DEPARTMENT OF NATURAL RESOURCES, page 405, after line 21, by adding Proviso 24.18 to read:

/     24.18.   (DNR: Privilege Reinstatement Fee) After serving a statutory, point system, bench warrant, or court ordered suspension, a person must pay a $100 reinstatement fee to the Department of Natural Resources. After the mandatory suspension period, and receipt of the reinstatement fee, the department shall reinstate the privilege or license, permit, stamp, tag, or registration.     /

The PRESIDENT overruled the Point of Order .

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 26.7 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 26, DEPARTMENT OF PARKS, RECREATION AND TOURISM, page 406, beginning on line 16, by striking Proviso 26.7 and inserting:

/     26.7.   (PRT: Study Fee Structure) Notwithstanding Section 51-3-60, the Department of Parks, Recreation and Tourism is directed to study the current fee structure of the State Park System. If the study determines that adjustments are needed in order to maintain the fiscal soundness and continued maintenance and operations of the State Park System, the department shall notify the Senate Finance Committee and the House Ways and Means Committee prior to implementing adjustments to the fee structure.       /

The PRESIDENT sustained the Point of Order.

Proviso 26.7 was ruled out of order.


Printed Page 2612 . . . . . Wednesday, May 14, 2003

RECESS

At 3:54 P.M., on motion of Senator SETZLER, the Senate receded from business not to exceed two minutes.

At 3:58 P.M., the Senate resumed.

RECESS

At 3:58 P.M., on motion of Senator SETZLER, the Senate receded from business not to exceed five minutes.

At 4:30 P.M., the Senate resumed.

Senator McCONNELL spoke on the report.

Sense of the Senate Motion Adopted

Senator McCONNELL made a Sense of the Senate motion that any proviso or amendment thereto contained within the House Appropriation Bill, H. 3749, be considered as before the body for purposes of Points of Order pursuant to Rule 24A and B now and prior to second reading. This does not affect application of Rule 24A and B for amendments proposed prior to third reading.

Point of Order

Senator THOMAS raised a Point of Order that the Sense of the Senate motion required unanimous consent.

Expression of Personal Interest

Senator J. VERNE SMITH rose for an Expression of Personal Interest.

The Point of Order raised by Senator THOMAS was overruled.

The Sense of the Senate motion was adopted.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 69A.2 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24.

Amend the bill further, as and if amended, Part IB, Section 69A, AID TO SUBDIVISIONS, COMPTROLLER GENERAL, page 471, Proviso 69A.2, by striking line 18 and inserting:


Printed Page 2613 . . . . . Wednesday, May 14, 2003

/   seniors' homestead exemption and manufacturer's depreciation. A local taxing entity's reimbursement for manufacturer's depreciation provided in Section 12-37-935(B) shall not be less than the reimbursement received in the prior fiscal year.     /

The PRESIDENT sustained the Point of Order.

Proviso 69A.2 was ruled out of order.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 36.27 of the House passed version of H. 3749 was out of order inasmuch as it was violative of Rule 24.
36.27. (DPS: Ten Year Driver's License) Notwithstanding Section 56-1-210 of the 1976 Code, a license issued or renewed before July 1, 2003, expires on the licensee's birth date on the fifth calendar year after the calendar year in which it is issued. A license issued or renewed on or after July 1, 2003, expires on the licensee's birth date on the tenth calendar year after the calendar year in which it is issued. However, once a licensee becomes sixty-five years of age or older, the license expires on the licensee's birth date on the fifth calendar year after the calendar year in which it is issued. Notwithstanding Section 56-1-140 of the 1976 Code, the fee for a license that is valid for five years is twelve dollars and fifty cents and the fee for a license that is valid for ten years is twenty-five dollars. During the fifth year of a ten-year license, the licensee must submit by mail to the department a certificate from a person authorized by law in this State to screen eyes or appear in person at a department office to complete a vision screening. If a licensee fails to submit a certificate or fails to appear in person, the licensee must be fined fifty dollars. The department shall waive the fine if the person completes the requirements of this section within ninety days after the end of the fifth year of a ten-year license. This fine must be placed by the Comptroller General into a special restricted account to be used by the department to defray the expenses incurred by this section. Interest accrued by this account must remain in this account. A vision screening will not be required before October 1, 2008, if a licensee is less than sixty-five years of age, his license expires on his birth date on the fifth calendar year after the calendar year in which it was issued, and his license is renewed for an additional five years by mail or electronically. If a licensee is sixty-five years of age or older and his license expires on his birth date on the fifth calendar year after


Printed Page 2614 . . . . . Wednesday, May 14, 2003

the calendar year in which it is issued, then he may renew his license by mail for an additional five years upon submission of a certificate from a person authorized by law in this State to screen eyes.

The PRESIDENT sustained the Point of Order.

Proviso 36.27 was ruled out of order.

Senator LAND asked unanimous consent to make a motion to take up Amendment No. 201 for immediate consideration and, upon the disposition of Amendment No. 201, the Senate would take up for immediate consideration Amendment No. 214.

There was no objection.

Amendment No. 201

Senator RICHARDSON proposed the following Amendment 201 (20594SD03.DOC), which was ruled out of order:

Amend the Senate Finance Committee amendment, as and if amended, page 3749-64, by adding an appropriately numbered section to read:

// Section   _____.   (A)   The 1976 Code is amended by adding Section 12-36-1115:

"Section 12-36-1115.   For fiscal year 2003-2004 only, and notwithstanding Section 12-36-910, the State shall impose a new sales tax, equal to one percent of the gross proceeds of sale on every person engaged or continuing within this State in the business of selling tangible personal property at retail. The new one percent sales tax imposed for fiscal year2003-2004 only does not apply to food or foodstuffs sold at retail.

(B)   The 1976 Code is amended by adding Section 12-21-625:

"Section 12-21-625.   (A)   Effective for fiscal year 2003-2004 and in addition to the tax imposed pursuant to Section 12-21-620(1), there is levied, assessed, collected, and paid upon all cigarettes made of tobacco or any substitute for tobacco, a new license tax equal to 2.65 cents on each cigarette made of tobacco or any substitute for tobacco. The amount imposed pursuant to this section must be reported, paid, collected, and enforced in the same manner as the tax imposed pursuant to Section 12-21-620(1). There is created in the state treasury the Medicaid Match Fund. The revenue of the tax imposed pursuant to this section must be credited to the Medicaid Match Fund.


Printed Page 2615 . . . . . Wednesday, May 14, 2003

This fund must be separate and distinct from the general fund of the State. Monies in the fund must be used by the Department of Health and Human Services solely as the state match for federal Medicaid funding. The fund is exempt from any budgetary cuts or reductions caused by the lack of general fund revenues. Earnings on investments of monies in the fund must be credited to the fund and used for the same purposes as other monies in the fund. Monies in the fund must be expended during fiscal year 2003-2004.

(B)   Effective July 1, 2003, and effective until June 30, 2004, only, the license taxes imposed on cigarettes by Article 5, Chapter 21, Title 12 of the 1976 Code and this section must be paid by affixing stamps to each individual package in the manner and at the time set forth in this section. A stamp evidencing the taxes imposed may not be of a denomination of less than one cent and whenever the tax computed at the rate prescribed is a specified amount plus a fractional part of one cent, the package must be stamped for the next full cent. The Department of Revenue may authorize wholesale dealers in cigarettes to store cigarettes intended to be sold and shipped out of this State in separate compartments of their business without affixing revenue stamps. However, a wholesale dealer making shipments of cigarettes to locations out of this State shall apply to the department for a license that allows the wholesale dealer to maintain the separate compartments authorized by this item. A wholesale dealer in cigarettes violating the rules and regulations permitting the storage of cigarettes without affixing the stamps is liable for the penalties contained in Title 12 of the 1976 Code. The stamps must be affixed to each individual package by wholesalers within seventy-two hours after the products are received by them and by retailers within twenty-four hours of receipt by them of these products. In any event, these goods must be stamped before being sold. If cigarettes are manufactured within the State and sold directly to consumers, they must be stamped by the manufacturer when and as sold. Each person or distributor of taxable cigarettes first receiving untaxed cigarettes for sale or distribution in this State is subject to the taxes imposed by Article 5, Chapter 21, Title 12 of the 1976 Code and subsection (A) of this section. Each person or distributor required to pay the taxes by affixing stamps must also make a report to the department, in the form the department prescribes, of all cigarettes and cigarette tax stamps in inventory at the beginning and end of the month, all cigarettes and cigarette tax stamps purchased during the month, all cigarettes disposed of in this State during the month, and other information required by law or considered necessary


Printed Page 2616 . . . . . Wednesday, May 14, 2003

by the department. If the report indicates that the person or distributor did not stamp all cigarettes disposed of, the person or distributor shall pay the additional taxes with the report. The report and taxes, if any additional taxes are due with the report, are due no later than the twentieth day of the month next succeeding the month of the purchase or disposition. Cigarettes held in inventory on July 1, 2003, by the person or distributor who first received the cigarettes into this State must be stamped as provided by this section. Credit must be allowed for any taxes previously paid on the cigarettes.

(C)   Section 12-21-735 is suspended effective July 1, 2003, for the remainder of fiscal year 2003-2004.

(D)(1)   This subsection may be cited as the Economic Recovery Tax Relief Act.

(2)   For purposes of this subsubsection:

(a)   "Board of Economic Advisors" means the Board of Economic Advisors of the State Budget and Control Board established pursuant to Section 11-9-820 of the 1976 Code.

(b)   "Board of Economic Advisors revenue estimate" means a Board of Economic Advisors estimate of revenues made by October tenth of each year as required by this subsection.

(c)   "Individual income tax revenue" means total state individual income tax revenue for a fiscal year.

(d)   "Individual income tax general fund revenue" means individual income tax revenue reduced by amounts required to be deducted and credited to the Trust Fund for Tax Relief pursuant to Section 11-11-150. In determining individual income tax general fund revenue, the amount deducted from individual income tax revenue for credit to the Trust Fund for Tax Relief must be an amount which bears the same ratio to the total Trust Fund for Tax Relief amount for a fiscal year as individual income tax revenue bears to the sum of individual income tax revenue and corporate income tax revenue for the fiscal year.

(e)   "Base revenue" means $2,092,691,000 adjusted upward by one and one-half percent a fiscal year beginning with the fiscal year immediately succeeding the fiscal year in which individual income tax general fund revenue first equals or exceeds $2,092,691,000.

(f)   "Economic recovery revenue" means the amount by which the Board of Economic Advisors revenue estimate for individual income tax general fund revenue exceeds base revenue.

(g)   "Cigarette tax increase" means a state tax on cigarettes in excess three and one-half mills a cigarette.


Printed Page 2617 . . . . . Wednesday, May 14, 2003

(h)   "Cumulative cigarette tax increase" means the sum of state revenues derived from a cigarette tax increase for each completed fiscal year since inception.

(3)   Effective for fiscal year 2003-2004, the Comptroller General shall certify to the Board of Economic Advisors by October first following the close of the fiscal year base revenue, individual income tax revenue for the fiscal year that just ended, individual income tax general fund revenue for the fiscal year that just ended, and the cumulative cigarette tax increase.

(4)   The individual income tax liability for the taxable year beginning after December 31,2003, there is allowed an Economic Recovery Tax Credit allocated among the individual income taxpayers of South Carolina as provided in item (5) of this subsection. The Economic Recovery Tax Credit is nonrefundable for individual income taxpayers. The total Economic Recovery Tax Credit allowed is an amount equal to eighty percent of the economic recovery revenue for fiscal year 2003-2004.

(5)   The Board of Economic Advisors shall calculate and certify the total amount of the Economic Recovery Tax Credit to the Department of Revenue by October tenth of fiscal year 2003-2004. The Department of Revenue shall establish a method to apply the Economic Recovery Tax Credit to individual income tax returns that meets each of the following criteria:

(a)   the amount of the Economic Recovery Tax Credit realized by an individual taxpayer must be an amount which bears the same ratio to the total amount of the Economic Recovery Tax Credit as the income tax due as shown on the taxpayer's income tax return before taking the Economic Recovery Tax Credit bears to the individual income tax revenue for the fiscal year;

(b)   the Economic Recovery Tax Credit realized by individual taxpayers must be determined by a formula that calculates the Economic Recovery Tax Credit in terms of a percentage reduction to the state income tax liability of each individual; and,

(c)   the Economic Recovery Tax Credit does not produce a negative income tax liability for individual income taxpayers.

(6)   The Economic Recovery Tax Credit provided by this subsection terminates effective June 30, 2004.

(7)   The Department of Revenue shall apply the income tax rate reductions to the applicable rates, and these rates as reduced, apply in lieu of the former rates. After the income tax rate reductions.


Printed Page 2618 . . . . . Wednesday, May 14, 2003

C,     Revenues raised as result of the provisions of this section must be deposited in the general fund of the State and allocated to the following areas as provided in Part 1A of the general appropriations act:

Base Student Cost; State Employee Insurance and Salary Increase; Departments of Corrections, Juvenile Justice, and Public Safety, Prosecution, SLED, Judicial; Departments of Health and Human Services, DHEC, DSS, Department of Mental Health, and Disabilities and Special Needs; ESOL (English as a Second Language) - per student funding; Medical University of South Carolina Nursing School Expansion and Islet Diabetes Research Program; Charleston Harbour; Higher Education Equalization Program; Trident Technical Culinary Program; Technical College of the Low Country Nursing School Expansion Program; and USC - Beaufort Teacher Quality Training Institute. //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RICHARDSON explained the amendment.

Point of Order

Senator McCONNELL raised a Point of Order that the amendment was out of order inasmuch as it was violative of Rule 24A.

Senators WALDREP, MARTIN, RICHARDSON and LEATHERMAN spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Amendment No. 201 was ruled out of order.

Amendment No. 214

Senator MOORE proposed the following Amendment No. 214 (AMD3749TLMFC39), which was not adopted:

Amend the committee amendment, as and if amended, by adding after the last Part IB section, the following:

/                         PART II

  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.


Printed Page 2619 . . . . . Wednesday, May 14, 2003

  SECTION 2

TO AMEND SECTION 12-6-510 OF THE 1976 CODE, RELATING TO INCOME TAX RATES FOR INDIVIDUALS, ESTATES, AND TRUSTS SO AS TO ELIMINATE INCOME TAX FOR RETURNS FILED AND REPORTING TAXABLE INCOME EQUAL OR LESS THAN FIFTEEN THOUSAND DOLLARS BEGINNING IN TAX YEARS AFTER 2002.

A.   Section 12-6-510 of the 1976 Code is amended to read:

"Section 12-6-510. (A) For taxable years beginning after 19942002:

(1) for returns filed and reporting taxable income equal to or less than fifteen thousand dollars, no tax shall be due; and

(2) for returns filed and reporting taxable income in excess of fifteen thousand dollars, a tax equal to seven percent of the taxable income is imposed on the South Carolina taxable income reported of individuals, estates, and trusts and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 computed at the following rates with the income brackets indexed in accordance with Section 12-6-520:

Not over $2,220 2.5 percent of taxable income

Over $2,220 but $56 plus 3 percent of

not over $4,440 the excess over $2,220;

Over $4,440 but $123 plus 4 percent of

not over $6,660 the excess over $4,440;

Over $6,660 but $212 plus 5 percent of

not over $8,880 the excess of $6,660;

Over $8,880 but $323 plus 6 percent of

not over $11,100 the excess over $8,880;

Over $11,100 $456 plus 7 percent of

the excess over $11,100.

(B) The department may prescribe tax tables consistent with the rates set pursuant to subsection (A)."

B. This section takes effect July 1, 2003.

  SECTION 3

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-515 SO AS TO PROVIDE A MAXIMUM FIVE PERCENT STATE INCOME TAX RATE ON SOUTH CAROLINA TAXABLE INCOME RECEIVED BY A TAXPAYER IN THE TAXPAYER´S   CAPACITY AS A SOLE PROPRIETOR OF A BUSINESS, A SHAREHOLDER OF A SUBCHAPTER ´S´   CORPORATION, PARTNER IN A


Printed Page 2620 . . . . . Wednesday, May 14, 2003

PARTNERSHIP, OR MEMBER OF A LIMITED LIABILITY COMPANY.

A.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-515. Notwithstanding the rates imposed pursuant to Section 12-6-510, for tax years beginning after 2002 a maximum rate of five percent of South Carolina taxable income applies to income received by or attributed to a taxpayer as a result of the taxpayer's status as a:

(1) sole proprietor of a business;

(2) shareholder of a subchapter 'S' corporation;

(3) partner in a partnership; or

(4) member of a limited liability company.

The special rate allowed by this section does not apply for a guaranteed payment to a partner for personal service rendered by the partner for the partnership. Any credits allowed or authorized under the provisions of Title 12 which are credits against the taxes imposed pursuant to Sections 12-6-510 also apply to the tax imposed in this section"

B. This section takes effect July 1, 2003.

  SECTION 4

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-625 SO AS TO IMPOSE AN ADDITIONAL TAX ON CIGARETTES AND TO CREATE A MEDICAID MATCH FUND IN The STATE TREASURY.

A.   Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-625.   (A) Effective July 1, 2003, in addition to the tax imposed pursuant to Section 12-21-620(1), there is levied, assessed, collected, and paid upon all cigarettes made of tobacco or any substitute for tobacco, an additional license tax equal to 2.65 cents on each cigarette made of tobacco or any substitute for tobacco. The amount imposed pursuant to this section must be reported, paid, collected, and enforced in the same manner as the tax imposed pursuant to Section 12-21-620(1).

(B)There is created in the state treasury the Medicaid Match Fund. The revenue of the tax imposed pursuant to this section must be credited to the Medicaid Match Fund. This fund must be separate and distinct from the general fund of the State. Monies in the fund must be appropriated to and used by the Department of Health and Human Services solely as the state match for federal Medicaid funding. The


Printed Page 2621 . . . . . Wednesday, May 14, 2003

fund is exempt from any budgetary cuts or reductions which result form or which are required by statute when there is a decrease or shortfall in estimated general fund revenues. Earnings on investments of monies in the fund must be credited to the fund and used for the same purposes as other monies in the fund. Any monies in the fund not expended during a fiscal year must be carried forward to the succeeding fiscal year and appropriated and used for the same purposes."

B. This section takes effect upon approval of the act.

  SECTION 5

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-630 SO AS TO REQUIRE THE USE OF A TAX STAMP EFFECTIVE JANUARY 1, 2004 TO IMPOSE THE LICENSE TAX ON CIGARETTES.

A.   Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-630.   Effective January 1, 2004, the license taxes imposed on cigarettes by this Article must be paid by affixing stamps to each individual package in the manner and at the time set forth in this section. A stamp evidencing the taxes imposed may not be of a denomination of less than one cent and whenever the tax computed at the rate prescribed is a specified amount plus a fractional part of one cent, the package must be stamped for the next full cent. The Department of Revenue may authorize wholesale dealers in cigarettes to store cigarettes intended to be sold and shipped out of this State in separate compartments of their business without affixing revenue stamps. However, a wholesale dealer making shipments of cigarettes to locations out of this State shall apply to the department for a license that allows the wholesale dealer to maintain the separate compartments authorized by this item. A wholesale dealer in cigarettes violating the rules and regulations permitting the storage of cigarettes without affixing the stamps is liable for the penalties contained in Title 12 of the 1976 Code. The stamps must be affixed to each individual package by wholesalers within seventy-two hours after the products are received by them and by retailers within twenty-four hours of receipt by them of these products. In all cases, these goods must be stamped before being sold. Cigarettes manufactured within the State and sold directly to consumers must be stamped by the manufacturer when and as sold. Each person or distributor of taxable cigarettes first receiving untaxed cigarettes for sale or distribution in this State is subject to the taxes imposed by Article 5, Chapter 21, Title 12 of the 1976 Code. Each person or distributor required to pay the taxes by affixing stamps must


Printed Page 2622 . . . . . Wednesday, May 14, 2003

also make a report to the department, in the form and manner prescribed by the department, of all cigarettes and cigarette tax stamps in inventory at the beginning and end of the month, all cigarettes and cigarette tax stamps purchased during the month, all cigarettes disposed of in this State during the month, and other information required by law or considered necessary by the department. If the report indicates that the person or distributor did not stamp all cigarettes disposed of, the person or distributor shall pay the additional taxes with the report. The report and taxes, if any additional taxes are due with the report, are due no later than the twentieth day of the month next succeeding the month of the purchase or disposition. Cigarettes held in inventory on January 1, 2004, by the person or distributor who first received the cigarettes into this State must be stamped as provided by this section. Credit must be allowed for any taxes previously paid on the cigarettes. The Department may retain a portion of the collections resulting from the administration of the tax stamp, not to exceed three hundred thousand dollars, to defray the cost of material and supplies."

B. This section takes effect July 1, 2003.

  SECTION 6

TO AMEND SECTION 12-36-910 (A) OF THE 1976 CODE, RELATING TO THE FIVE PERCENT TAX ON TANGIBLE PERSONAL PROPERTY, LAUNDRY SERVICES, ELECTRICITY, COMMUNICATION SERVICES, AND MANUFACTURER CONSUMED GOODS SO AS TO INCREASE THE TAX FROM FIVE PERCENT TO SEVEN PERCENT ON COVERED TRANSACTIONS EXCEPT FOR THE SALE OF FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS.

A.   Section 12-36-910 (A) of the 1976 Code is amended to read:

"Section 12-36-910   (A) (1) On and before June 30, 2003 A a sales tax, equal to five percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail.

(2) Except for food items eligible for purchase with United States Department of Agriculture food coupons, on and after July 1, 2003 a sales tax, equal to seven percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail.

B. This section takes effect upon approval of the act.


Printed Page 2623 . . . . . Wednesday, May 14, 2003

  SECTION 7

TO AMEND SECTION 12-36-920 OF THE 1976 CODE, RELATING TO THE TAX ON ACCOMMODATIONS FOR TRANSIENTS SO AS TO INCREASE THE TAX FROM SEVEN PERCENT TO NINE PERCENT ON COVERED TRANSACTIONS AND FROM FIVE PERCENT TO SEVEN PERCENT FOR OTHER TRANSACTIONS.

A.   Section 12-36-920 of the 1976 Code is amended to read:

"Section 12-36-920   (A) On and before June 30, 2003 (1) A sales tax equal to seven percent is imposed on the gross proceeds derived from the rental or charges for any rooms, campground spaces, lodgings, or sleeping accommodations furnished to transients by any hotel, inn, tourist court, tourist camp, motel, campground, residence, or any place in which rooms, lodgings, or sleeping accommodations are furnished to transients for a consideration. This tax does not apply where the facilities consist of less than six sleeping rooms, contained on the same premises, which is used as the individual's place of abode. The gross proceeds derived from the lease or rental of sleeping accommodations supplied to the same person for a period of ninety continuous days are not considered proceeds from transients. The tax imposed by this subsection (A) does not apply to additional guest charges as defined in subsection (B) (2).

(B)(2) A sales tax of five percent is imposed on additional guest charges at any place where rooms, lodgings, or accommodations are furnished to transients for a consideration, unless otherwise taxed under this chapter. The term additional guest charges includes, but is not limited to:

(1)(a) room service;

(2)(b) amenities;

(3)(c) entertainment;

(4)(d) special items in promotional tourist packages;

(5)(e) laundering and dry cleaning services;

(6)(f) in-room movies;

(7)(g) telephone charges;

(8)(h) rentals of meeting rooms; and

(9)(i) other guest services.

(B) On and after July 1, 2003 (1) A sales tax equal to nine percent is imposed on the gross proceeds derived from the rental or charges for any rooms, campground spaces, lodgings, or sleeping accommodations furnished to transients by any hotel, inn, tourist court, tourist camp, motel, campground, residence, or any place in which rooms, lodgings,


Printed Page 2624 . . . . . Wednesday, May 14, 2003

or sleeping accommodations are furnished to transients for a consideration. This tax does not apply where the facilities consist of less than six sleeping rooms, contained on the same premises, which is used as the individual's place of abode. The gross proceeds derived from the lease or rental of sleeping accommodations supplied to the same person for a period of ninety continuous days are not considered proceeds from transients. The tax imposed by this subsection (A) does not apply to additional guest charges as defined in subsection (2).

(2) A sales tax of seven percent is imposed on additional guest charges at any place where rooms, lodgings, or accommodations are furnished to transients for a consideration, unless otherwise taxed under this chapter. The term additional guest charges includes, but is not limited to:

(a) room service;

(b) amenities;

(c) entertainment;

(d) special items in promotional tourist packages;

(e) laundering and dry cleaning services;

(f) in-room movies;

(g) telephone charges;

(h) rentals of meeting rooms; and

(i) other guest services.

(C) Real estate agents, brokers, corporations, or listing services required to remit taxes under this section shall notify the department if rental property, previously listed by them, is dropped from their listings.

(D) When any business is subject to the sales tax on accommodations and the business has more than one place of business in the State, the licensee shall report separately in his sales tax return the total gross proceeds derived from business done within and without the corporate limits of municipalities. A taxpayer who owns or manages rental units in more than one county or municipality shall report separately in his sales tax return the total gross proceeds from business done in each county or municipality.

(E) The taxes imposed by this section are imposed on every person engaged or continuing within this State in the business of furnishing accommodations to transients for consideration."

B. This section takes effect upon approval of the act.

  SECTION 8

TO AMEND SECTION 12-36-940 (A) OF THE 1976 CODE, RELATING TO THE AMOUNTS THAT MAY BE ADDED TO


Printed Page 2625 . . . . . Wednesday, May 14, 2003

SALES PRICE BECAUSE OF TAX. SO AS TO INCREASE THE AMOUNTS TO CORRESPOND TO THE INCREASE IN THE SALES TAX FROM FIVE TO SEVEN PERCENT.

A.   Section 12-36-940. (A) of the 1976 Code is amended to read:

"(A) Each retailer may add to the sales price as a result of the fiveseven percent state sales tax:

(1) no amount on sales of ten cents or less;

(2) one cent on sales of eleven through twenty-five cents;

(3) two cents on sales of twenty-onesix through forty cents;

(4) three cents on sales of forty-one through sixtyfifty-five cents;

(5) four cents on sales of fifty-sixty-one through eightyseventy cents;

(6) five cents on sales of eightyseventy-one cents through one dollareighty-five cents;

(7) six cents on sales of eighty-six cents through ninety cents;

(8) seven cents on sales of ninety cents through one dollar; and

(79) one cent additional for each twentyfifteen cents or major fraction of it over one dollar."

B. This section takes effect July 1, 2003.

  SECTION 9

TO AMEND SECTION 12-36-1310 (A) OF THE 1976 CODE, RELATING TO THE IMPOSITION AND RATE OF THE USE TAX SO AS TO INCREASE THE RATE FROM FIVE TO SEVEN PERCENT.

A.   Section 12-36-1310. (A) of the 1976 Code is amended to read:

"Section 12-36-1310.   (A) (1) On and before June 30, 2003 A a use tax is imposed on the storage, use, or other consumption in this State of tangible personal property purchased at retail for storage, use, or other consumption in this State, at the rate of five percent of the sales price of the property, regardless of whether the retailer is or is not engaged in business in this State.

(2) On and after July 1, 2003 a use tax is imposed on the storage, use, or other consumption in this State of tangible personal property purchased at retail for storage, use, or other consumption in this State, at the rate of seven percent of the sales price of the property, regardless of whether the retailer is or is not engaged in business in this State."

B. This section takes effect upon approval of the act.

  SECTION 10

TO AMEND SECTION 12-36-1320 OF THE 1976 CODE, RELATING TO THE IMPOSITION AND RATE OF THE TAX ON TRANSIENT CONSTRUCTION PROPERTY SO AS TO INCREASE THE RATE FROM FIVE TO SEVEN PERCENT.


Printed Page 2626 . . . . . Wednesday, May 14, 2003

A.   Section 12-36-1320 of the 1976 Code is amended by adding:

"(I) On and after July 1, 2003 the rate of tax imposed by this section shall be seven percent."

B. This section takes effect upon approval of the act.

  SECTION 11

TO AMEND SECTION 12-36-1710 (A) OF THE 1976 CODE, RELATING TO THE IMPOSITION AND RATE OF THE CASUAL EXCISE TAX SO AS TO INCREASE THE RATE FROM FIVE TO SEVEN PERCENT.

A.   Section 12-36-1710 (A) of the 1976 Code is amended to read:

"Section 12-36-1710.   (A) (1) On and before June 30, 2003, Iin addition to all other fees prescribed by law there is imposed an excise tax for the issuance of every certificate of title, or other proof of ownership, for every motor vehicle, motorcycle, boat, motor, or airplane, required to be registered, titled, or licensed. The tax is five percent of the fair market value of the motor vehicle, motorcycle, airplane, boat, and motor.

(2) On and after July 1, 2003, in addition to all other fees prescribed by law there is imposed an excise tax for the issuance of every certificate of title, or other proof of ownership, for every motor vehicle, motorcycle, boat, motor, or airplane, required to be registered, titled, or licensed. The tax is seven percent of the fair market value of the motor vehicle, motorcycle, airplane, boat, and motor."

B. This section takes effect upon approval of the act.

  SECTION 12

TO AMEND SECTION 12-36-2120 (57) (a) OF THE 1976 CODE, RELATING TO EXEMPTIONS FROM SALES TAX SO AS TO INCLUDE READING GLASSES AND PRESCRIPTION GLASSES IN THE EXEMPTION ON 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.

A.   Section 12-36-2120(57)(a) of the 1976 Code, as added by Act 387 of 2000, is amended 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;


Printed Page 2627 . . . . . Wednesday, May 14, 2003

(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;

(vi) reading glasses and prescription glasses."

B. This section takes effect July 1, 2003.

  SECTION 13

TO AMEND SECTION 12-36-2620 OF THE 1976 CODE, RELATING TO THE REVENUE COMPONENTS OF THE SALES AND USE TAX SO AS ADD A NEW COMPONENT TO BE CREDITED TO THE GENERAL FUND.

A.   Section 12-36-2620 of the 1976 Code is amended to read:

"Section 12-36-2620.   The taxes imposed by Sections 12-36-910, 12-36-920(B), 12-36-1310, and 12-36-1320 are composed of twothree taxes as follows:

(1) a four percent tax, which must be credited as provided in Section 59-21-1010(A), and;

(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item does not apply to sales to an individual eighty-five years of age or older purchasing tangible personal property for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age.; and

(3) a two percent tax which must be credited to the general fund."

B. This section takes effect July 1, 2003.

  SECTION 14

TO AMEND SECTION 12-36-2630 OF THE 1976 CODE, RELATING TO THE REVENUE COMPONENTS OF THE SALES TAX ON ACCOMMODATIONS FOR TRANSIENTS SO AS ADD A NEW COMPONENT TO BE CREDITED TO THE GENERAL FUND.

A.   Section 12-36-2630 of the 1976 Code is amended to read:

"Section 12-36-2630. The tax imposed by Section 12-36-920(A) is composed of threefour taxes as follows:

(1) a four percent tax which must be credited as provided in Section 59-21-1010(A); and

(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item (2) does not apply to sales to an individual eighty-five years of age or older purchasing tangible personal property for his own personal use, if at the


Printed Page 2628 . . . . . Wednesday, May 14, 2003

time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age; and

(3) a two percent tax which must be credited to the general fund; and

(34) a two percent local accommodations tax, which must be credited to the political subdivisions of the State in accordance with Chapter 4 of Title 6. The proceeds of this tax, less the department's actual increase in the cost of administration and the expenses of the Tourism Expenditure Review Committee established pursuant to Section 6-4-35, must be remitted quarterly to the municipality or the county in which it is collected. The two percent tax provided by this item may not be increased except upon approval of two-thirds of the membership of each House of the General Assembly. However, the tax may be decreased or repealed by a simple majority of the membership of each House of the General Assembly.

The tax imposed by Section 12-36-920 must be billed and paid in a single item listed as tax, without itemizing the taxes referred to in this section.

B. This section takes effect July 1, 2003.

  SECTION 15

TO AMEND SECTION 12-36-2640 OF THE 1976 CODE, RELATING TO THE REVENUE COMPONENTS OF THE CASUAL EXCISE TAX SO AS ADD A NEW COMPONENT TO BE CREDITED TO THE GENERAL FUND.

A.   Section 12-36-2640 of the 1976 Code is amended to read:

"Section 12-36-2640. The tax imposed by Section 12-36-1710 is composed of twothree taxes as follows:

(1) a four percent tax which must be credited to the general fund of the State; and

(2) a one percent tax which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item does not apply to the issuance of certificates of title or other proof of ownership to an individual eighty-five years of age or older titling or registering a motor vehicle, motorcycle, boat, motor, or airplane for his own personal use, if at the time of sale, the individual requests the one percent exclusion from tax and provides the retailer with proof of age.; and

(3) a two percent tax which must be credited to the general fund."

B. This section takes effect July 1, 2003.

  SECTION 16

TO AMEND SECTION 12-36-2645 OF THE 1976 CODE, RELATING TO THE IMPOSITION AND RATE OF THE TAX


Printed Page 2629 . . . . . Wednesday, May 14, 2003

APPLICABLE TO PROCEEDS OF 900/976 TELEPHONE SERVICE SO AS TO INCREASE THE RATE FROM TEN TO TWELVE PERCENT.

A.   Section 12-36-2645 of the 1976 Code is amended to read:

"Section 12-36-2645. The sales and use taxes imposed by this chapter also extend to gross proceeds accruing or proceeding from the business of providing 900/976 telephone service except that the applicable rate of the tax is tentwelve percent. All revenues derived from the tax imposed by this section must be credited to the general fund of the State."

B. This section takes effect July 1, 2003.

  SECTION 17

TO AMEND SECTION 12-37-250 OF THE 1976 CODE, RELATING TO THE HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER OR THOSE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND BY INCREASING THE AMOUNT OF THE EXEMPTION FORM FIFTY THOUSAND TO FIFTY-FIVE THOUSAND DOLLARS.

A.   Section 12-37-250 of the 1976 Code is amended to read:

"Section 12-37-250.   The first fifty-five thousand dollars of the fair market value of the dwelling place of a person is exempt from county, municipal, school, and special assessment real estate property taxes when the person has been a resident of this State for at least one year and has reached the age of sixty-five years on or before December thirty-first, the person has been classified as totally and permanently disabled by a state or federal agency having the function of classifying persons, or the person is legally blind as defined in Section 43-25-20, preceding the tax year in which the exemption is claimed and holds complete fee simple title or a life estate to the dwelling place. A person claiming to be totally and permanently disabled, but who has not been classified by one of the agencies, may apply to the State Agency of Vocational Rehabilitation. The agency shall make an evaluation of the person using its own standards. The exemption includes the dwelling place when jointly owned in complete fee simple or life estate by husband and wife, and either has reached sixty-five years of age, or is totally and permanently disabled, or legally blind under this section, before January first of the tax year in which the exemption is claimed, and either has been a resident of the State for one year. The exemption must not be granted for the tax year in which it is claimed unless the person or his agent makes written application for the exemption before July sixteenth of that tax year. If the person or his agent makes written


Printed Page 2630 . . . . . Wednesday, May 14, 2003

application for the exemption after July fifteenth, the exemption must not be granted except for the succeeding tax year for a person qualifying under this section when the application is made. However, if application is made after July fifteenth of that tax year but before the first penalty date on property taxes for that tax year by a person qualifying under this section when the application is made, the taxes due for that tax year must be reduced to reflect the exemption provided in this section. The application for the exemption must be made to the auditor of the county and to the governing body of the municipality in which the dwelling place is located upon forms provided by the county and municipality and approved by the Comptroller General, and a failure to apply constitutes a waiver of the exemption for that year. The auditor, as directed by the Comptroller General, shall notify the municipality of all applications for a homestead exemption within the municipality and the information necessary to calculate the amount of the exemption. 'Dwelling place' means the permanent home and legal residence of the applicant.

When any person would be entitled to a homestead tax exemption under this section except that he does not own the real property on which his dwelling place is located and his dwelling place is a mobile home owned by him located on property leased from another, such mobile home shall be exempt from personal property taxes to the same extent and obtained in accordance with the same procedures as is provided for in this section for an exemption from real property taxes; provided, however, that no person shall receive such an exemption from both real and personal property taxes in the same year.

When a dwelling house and legal residence is located on leased or rented property and such dwelling house is owned and occupied by the owner even though at the end of the lease period the lessor becomes owner of the residence, the owner lessee shall qualify for and be entitled to a homestead exemption in the same manner as though he owned a fee simple or life estate interest in the leased property on which his dwelling house is located.

When any person who was entitled to a homestead tax exemption under this section dies or any person who was not sixty-five years of age or older, blind, or disabled on or before December thirty-first preceding the application period, but was at least sixty-five years of age, blind, or disabled at the time of his death and was otherwise entitled dies and the surviving spouse is at least fifty years of age and acquires complete fee simple title or a life estate to the dwelling place within nine months after the death of the spouse, the dwelling place is


Printed Page 2631 . . . . . Wednesday, May 14, 2003

exempt from real property taxes to the same extent and obtained in accordance with the same procedures as are provided for in this section for an exemption from real property taxes so long as the spouse remains unmarried and the dwelling place is utilized as the permanent home and legal residence of the spouse. A surviving spouse who disposes of the dwelling place and acquires another residence in this State for use as a dwelling place may apply for and receive the exemption on the newly acquired dwelling place. The spouse shall inform the county auditor of the change in address of the dwelling place.

The term "permanently and totally disabled" as used herein shall mean the inability to perform substantial gainful employment by reason of a medically determinable impairment, either physical or mental, which has lasted or is expected to last for a continuous period of twelve months or more or result in death.

The Comptroller General shall reimburse the state agency of Vocational Rehabilitation for the actual expenses incurred in making decisions relative to disability from funds appropriated for homestead reimbursement.

The Comptroller General shall promulgate such rules and regulations as may be necessary to carry out the provisions herein.

Nothing herein shall be construed as an intent to cause the reassessment of any person's property.

The provisions of this section apply to life estates created by will and also to life estates otherwise created.

The homestead tax exemption must be granted in the amount in this paragraph to those persons who own a dwelling in part in fee or in part for life when the persons satisfy the other conditions of the exemption. The amount of the exemption must be determined by multiplying the percentage of the fee or life estate owned by the person by the full exemption. For purposes of the calculation required by this paragraph, a percentage of ownership less than five percent is considered to be five percent. The exemption may not exceed the value of the interest owned by the person."

B. This section takes effect July 1, 2003.

  SECTION 18

TO PROVIDE FOR THE MANNER OF APPLICATION OF THE INCREASE IN THE SALES AND USE TAX ON CONSTRUCTION CONTRACTS.

The gross proceeds of sales of tangible personal property delivered after the imposition date of the additional tax levied under various


Printed Page 2632 . . . . . Wednesday, May 14, 2003

sections of this Part, 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 for in this section if a verified copy of the contract is filed with the South Carolina Department of Revenue within six months after the imposition of the sales and use tax under this section.

  SECTION 19

TO REPEAL SECTION 12-21-735 OF THE 1976 CODE, RELATING TO THE METHOD OF PAYMENT OF LICENSE TAX ON CIGARETTES SO AS TO REPEAL THE SECTION EFFECTIVE JANUARY 1, 2004.

A. Section 12-21-735 is repealed effective January 1, 2004.

B. This section takes effect July 1, 2003.

  SECTION 20

TO AUTHORIZE THE DEPARTMENT OF REVENUE TO PUBLISH GUIDELINES TO CONFORM THE ADMINISTRATION OF THE INCREASE IN THE SALES AND USE TAX TO APPLICABLE PROVISIONS OF THE CODE OF LAWS.

The Department of Revenue is authorized to publish necessary administrative guidelines to conform the application of the various tax changes in this Part to other provisions of the Code of Laws as are necessary for the efficient administration of this section until such time as it is able to publish regulations pursuant to Chapter 23 of Title 1 of the Code.

B. This section takes effect July 1, 2003.

  END OF PART II

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

Senator COURSON spoke on the amendment.

Senator McCONNELL spoke on the amendment.

ACTING PRESIDENT PRESIDES

At 5:59 P.M., Senator MARTIN assumed the Chair.

Senator McCONNELL spoke on the amendment.


Printed Page 2633 . . . . . Wednesday, May 14, 2003

Point of Order

Senator McCONNELL raised a Point of Order that Section 4 of the amendment was out of order inasmuch as it was violative of Section 11-11-440 of the S. C. Code of Laws, 1976, as amended.

The ACTING PRESIDENT sustained the Point of Order.

Section 4 of Amendment No. 214 was ruled out of order.

Point of Order

Senator McCONNELL raised a Point of Order that Sections 6, 7, 8, 9, 10 and 11 of the amendment were out of order inasmuch as they were violative of Section 11-11-440 of the S. C. Code of Laws, 1976, as amended.

The ACTING PRESIDENT took the Point of Order under advisement.

Point of Order

Senator HUTTO raised a Point of Order that the Points of Order raised by Senator McCONNELL under Section 11-11-440 were out of order inasmuch as Points of Order should be based on the Rules of the Senate and not specific provisions of the S.C. Code of Laws.

Senators HUTTO and McCONNELL spoke on the Point of Order.

The ACTING PRESIDENT overruled the Point of Order.

Senator HUTTO argued in favor of the adoption of the amendment.

Senator LEVENTIS argued in favor of the adoption of the amendment.

Senator KUHN argued contra to the adoption of the amendment.

The question then was the adoption of the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 15; Nays 30

AYES

Anderson                  Drummond                  Ford
Glover                    Holland                   Hutto

Printed Page 2634 . . . . . Wednesday, May 14, 2003

Jackson                   Land                      Leventis
Matthews                  McGill                    Moore
Patterson                 Pinckney                  Short

Total--15

NAYS

Alexander                 Branton                   Courson
Cromer                    Elliott                   Fair
Giese                     Gregory                   Grooms
Hawkins                   Hayes                     Knotts
Kuhn                      Leatherman                Malloy
Martin                    McConnell                 Mescher
O'Dell                    Peeler                    Rankin
Ravenel                   Richardson                Ritchie
Ryberg                    Setzler                   Smith, J. Verne
Thomas                    Verdin                    Waldrep

Total--30

The amendment was not adopted.

Statement by Senators LEATHERMAN, GIESE, GREGORY COURSON, HAYES, BRANTON, GROOMS, RICHARDSON MESCHER, RYBERG, VERDIN, RAVENEL, KNOTTS THOMAS, CROMER, PEELER, ALEXANDER, J. VERNE
SMITH, RITCHIE, KUHN, HAWKINS, MARTIN
FAIR and McCONNELL

We voted "nay" on Amendment No. 214 because it is the largest tax increase on the citizens of South Carolina ever. South Carolinians cannot afford the tax increases that this amendment would have levied during these very difficult financial times. Our people simply cannot fund this almost one billion dollar tax increase and still make ends meet.

Senator LEVENTIS asked unanimous consent to make a motion to take up Amendment No. 58 for immediate consideration.

Senator LEATHERMAN spoke on the motion.

Senator RICHARDSON objected.


Printed Page 2635 . . . . . Wednesday, May 14, 2003

Point of Order

Senator HUTTO raised a Point of Order that Proviso 60.9 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 60, STATE TREASURER'S OFFICE, page 451, Proviso 60.9, by striking line 12 and inserting:

/     operating and management costs associated with the investment management of various state funds and programs, with the exception of funds administered by the S.C. Retirement System, and further,     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 9.49 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 9, DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, page 388, Proviso 9.49, line 30, by adding after / Carolina. / the following:

/     In accordance with Section 48-20-100 of the S.C. Mining Act, the following mining and reclamation fee schedules are established:

(1)   Mining Permit Application fee                     $600;

(2)   Mining Permit Conversion fee                     $600
(in lieu of permit renewal);

(3)   Mining Permit Substantial Modification fee           $600;

(4)   Mining Permit Transfer fee                       $600;
and

(5)   Certification of Exploration fee                     $300. /

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 9.50 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 9, DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, page 388, after line 30, by adding Proviso 9.50 to read:


Printed Page 2636 . . . . . Wednesday, May 14, 2003

/     9.50.   (DHEC: Drinking Water Construction Application Fees) The department is authorized to charge a fee for review and approval of applications to construct treatment facilities and distribution systems for public drinking water activities. The schedule for fees is as follows:

A.   Distribution systems and related components

1.   1,000 feet or less of line                                 $150

2.   1,001 feet to 9,999 feet                           $400

3.   10,000 feet or greater                             $600

4.   Distribution storage/pump stations                 $600

B.   Supply/Treatment from Groundwater Sources

1.   Well systems (test well)                           $500

2.   Well systems (follow-up, including

well head piping, storage                             $500

3.   Well Systems (one step)                         $1,000

4.   Treatment systems (except for chemical

feed systems)                                       $500

5.   Chemical feed systems                           $250

6.   Small water system permits                       $250

B.   Supply/Treatment from Surface Water Sources

1.   New Treatment Plants                         $2,000

2.   Expansions of existing facilities                   $1,500

3.   Plant storage, pumping and piping facilities           $500

4.   Chemical Feed Systems                           $250

C.   Drinking Water Dispensing

1.   Stations/Bottled Water Plants                     $500

D.   General Permit (which may include Delegated
Review Program Approval)

1.   Application for permit (not a renewal)             $1,000

2.   Delegated review permit                         $75

E.   Permit Extensions                                 $50

Revenue generated by these fees shall be retained by the department and cannot be transferred to other programs within the department's budget.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 1.73 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.


Printed Page 2637 . . . . . Wednesday, May 14, 2003

1.73. (SDE: Governor's Schools' Fees) Notwithstanding any other provision of law, the South Carolina Governor's School for the Arts and Humanities and the South Carolina Governor's School for Science and Mathematics are authorized to charge, collect, expend, and carry forward student fees as approved by their respective Board of Directors. The purpose and amount of any such fees will be to maintain program quality in both academics and residential support. No student will be denied admittance or participation due to financial inability to pay. The respective Board of Directors shall promulgate administrative policy governing the collection of all student fees.

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 32.8 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 32, ATTORNEY GENERAL'S OFFICE, page 412, after line 36, by adding Proviso 32.8 to read:

/       32.8.   (AG: Securities Fees Increase) The Office of the Attorney General is hereby authorized to collect the following Security Fees which shall remain in effect for all initial, renewal and notice filings described in subsections (A) and (B) of Section 35-1-480 unless and until the securities commissioner promulgates a rule or order establishing different fees:

(1)   Broker-dealer: five hundred dollars annually;

(2)   Broker-dealer agent: one hundred and fifty dollars annually;

(3)   Investment advisors:   three hundred dollars annually;

(4)   Investment adviser representatives:   one hundred dollars annually;

(5)   Federal covered securities (Mutual Funds): six hundred dollars annually.

The Office of the Attorney General is hereby authorized to collect, retain, expend, and carry forward one million five hundred thousand dollars from fee revenues collected pursuant to Section 35 to be used for the operations of the Securities Division. The Attorney General is authorized to transfer to the South Carolina Law Enforcement Division an additional two hundred thousand dollars collected from Security


Printed Page 2638 . . . . . Wednesday, May 14, 2003

Fees to be retained, expended, and carried forward for the provision of investigators for the State Grand Jury. The funds transferred to the State Law Enforcement Division shall be used only for purposes of the State Grand Jury and may not be transferred to any other program or used for any other purpose.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later sustained.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 36.25 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
36.25. (DPS: DPPA Compliance Audit) The Division of Motor Vehicles may charge fees to defray the costs associated with auditing and enforcing compliance of all Federal or State statutes and regulations pertaining to personal information for customers receiving information disseminated by the department as allowed by law. This provision does not pertain to state agencies. The Comptroller General shall place the funds into a special restricted account to be used by the department.

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 37.28 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
37.28. (CORR: Western Union Funding) All funds received by the S.C. Department of Corrections from the Western Union Quick Collect Revenue Sharing Program or similar private sector entities, which provides payment for processing electronic transfers into the E. H. Cooper Trust Fund, shall be retained by the S.C. Department of Corrections and credited to a fund entitled "Inmate Welfare Fund" to be expended for the benefit of the inmate population.

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.


Printed Page 2639 . . . . . Wednesday, May 14, 2003

Point of Order

Senator HUTTO raised a Point of Order that Proviso 56DD.35 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 56DD, GOVERNOR'S OFFICE, page 447, beginning on line 22, by striking Proviso 56DD.35 and inserting:

/     56DD.35.   (GOV: SLED - Compliance/Underage Alcohol/Tobacco Enforcement) Notwithstanding any other provision of law, all alcoholic liquor, beer, and wine filing fees shall be increased by nine hundred dollars. Provided, that when a person purchases more than one business location in a single transaction, only one additional nine hundred dollar fee is required. Provided further, that when a person licensed to sell alcoholic liquor or beer and wine moves his or her business to a new location in the same county that was licensed in the same manner within ninety days of the time of the move, the person may use his or her current license and is not required to initiate a new application upon approval by the department. The nine hundred dollar additional fee does not apply to daily or annual temporary permit applications. These additional funds shall be collected by the Department of Revenue and as soon as practicable allocated to the State Law Enforcement Division to offset the costs of inspections, investigation, and enforcement. SLED is authorized to receive, expend, and carry forward these funds.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later sustained.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 56DD.37 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
56DD.37. (GOV: SLED - Coin Operated Device Enforcement) The Department of Revenue is authorized to assess an additional fee of fifty dollars on each Class Two coin operated machine license authorized in Section 12-21-2720. These funds shall be collected by the Department of Revenue and sent to the State Law Enforcement Division to offset the cost of video gaming enforcement. The State Law Enforcement Division shall retain, expend, and carry forward these funds.

The ACTING PRESIDENT took the Point of Order under advisement, which was later sustained.


Printed Page 2640 . . . . . Wednesday, May 14, 2003

Point of Order

Senator HUTTO raised a Point of Order that Proviso 64.11 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
64.11. (DOR: Tax Amnesty) To encourage the payment of taxes owed to the State, and prior to the effective date of legislation allowing for assessment of the cost of collection, the General Assembly finds it desirable to establish a period during which the South Carolina Department of Revenue shall waive penalties and one-half of the interest imposed under Title 12 of the 1976 Code payable to the Department of Revenue for any taxpayer who pays all taxes, interest and costs owed. The General Assembly finds that the State's cost of collecting overdue tax debts exceeds twenty percent (20%) of the debts. The General Assembly finds that the cost of collecting overdue tax debts is currently borne by taxpayers who pay their taxes on time. It is the intent of the General Assembly that this cost be borne by the delinquent taxpayers who owe overdue tax debts.

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 64.18 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 64, DEPARTMENT OF REVENUE, page 470, after line 6, by adding Proviso 64.18 to read:

/     64.18.   (DOR: Cigarette Tax Stamp Program) The department must be reimbursed for the costs of cigarette stamps and the administration of the stamp program out of the tax imposed pursuant to Section 12-21-620.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 22.11 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
22.11. (AGRI: Private Sector Calibrations) Notwithstanding any other provision of law, the Department of Agriculture shall charge a fee of


Printed Page 2641 . . . . . Wednesday, May 14, 2003

$45.00 an hour based on a fee schedule for all calibrations performed for private sector entities by the Metrology Laboratory authorized by Section 39-9-68(3) of the 1976 Code of Laws. Revenues generated by these fees shall be for use by the Department of Agriculture to offset expenses incurred in operating the Metrology Laboratory.

The ACTING PRESIDENT took the Point of Order under advisement, which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 24.18 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 24, DEPARTMENT OF NATURAL RESOURCES, page 405, after line 21, by adding Proviso 24.18 to read:

/     24.18.   (DNR: Privilege Reinstatement Fee) After serving a statutory, point system, bench warrant, or court ordered suspension, a person must pay a $100 reinstatement fee to the Department of Natural Resources. After the mandatory suspension period, and receipt of the reinstatement fee, the department shall reinstate the privilege or license, permit, stamp, tag, or registration.     /

The ACTING PRESIDENT took the Point of Order under advisement which was later overruled.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 49.5 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 44, DEPARTMENT OF CONSUMER AFFAIRS, page 431, after line 34, by adding Proviso 49.5 to read:

/     49.5.   (CA: Registered Credit Grantor Notification and Fee) The Department of Consumer Affairs may collect a fee of one hundred twenty dollars for persons required to file Consumer Credit Grantor Notification under Section 37-6-203. The department may retain thirty dollars of the fee to offset the cost of administering and enforcing Chapter 6 of Title 37 of the S.C. Code of Laws. The department may collect a fee of forty dollars per location for persons required to file maximum rate schedules under Section 37-2-305 and Section 37-3-305. The department may retain thirty dollars of the maximum rate schedule


Printed Page 2642 . . . . . Wednesday, May 14, 2003

filing fee to offset the cost of administering and enforcing Chapters 2 and 3 of Title 37 of the S.C. Code of Laws. The revenue generated and retained for the department may be applied to the cost of operations, and any unexpended balances may be carried forward to the current fiscal year and utilized for the same purposes.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later sustained.

Point of Order

Senator HUTTO raised a Point of Order that Proviso 50.14 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 50, DEPARTMENT OF LABOR, LICENSING AND REGULATIONS, page 433, beginning after line 6, by adding Proviso 50.14 to read:

/     50.14.   (LLR: OVP-Labor Fines Surcharge) A twenty-five dollar surcharge is levied on all fines imposed by Division of Labor programs for violations of OSHA standards, Elevator and Amusement Ride, Payment of Wage, and Child Labor laws. A one thousand dollar surcharge is levied on all failure to abate citations. No portion of the surcharge may be waived, reduced, or suspended. The revenue collected will be retained by the agency and used to offset operating costs of the division.     /

The ACTING PRESIDENT took the Point of Order under advisement, which was later sustained.

Amendment No. 56

Senator WALDREP proposed the following Amendment No. 56 (DC33.NEW $100 SURCHARGE ON DRUG OFFENSES-2.DOC), which was adopted (#15):

Amend the committee amendment, as and if amended, page [3749-47] by inserting:

//   Amend the bill further, as and if amended, Part IB, Section 33, PROSECUTION COORDINATION COMMISSION, page 414, after line 3, by adding an appropriately numbered paragraph to read:

/ 33.___ (PCC: Drug Court Funding) (A) In addition to all other assessments and surcharges required to be imposed by law, during Fiscal Year 2003-04, a one hundred dollar surcharge is also levied on all fines, forfeitures, escheatments, or other monetary penalties imposed in the general sessions court or in magistrates' or municipal court for misdemeanor or felony drug offenses. No portion of the


Printed Page 2643 . . . . . Wednesday, May 14, 2003

surcharge may be waived, reduced, or suspended. (B) The revenue collected pursuant to subsection (A) must be retained by the jurisdiction which heard or processed the case and paid to the State Treasurer within thirty days after receipt. The State Treasurer shall transmit these funds to the Prosecution Coordination Commission which shall then apportion these funds among the sixteen judicial circuits on a per capita basis equal to the population in that circuit compared to the population of the State as a whole based on the most recent official United States census. The funds shall be used for drug treatment court programs only. (C) It is the intent of the General Assembly that the amounts generated by this paragraph shall be in addition to any amounts presently being provided for drug treatment court programs and may not be used to supplant funding already allocated for these services. (D) The State Treasurer may request the State Auditor to examine the financial records of any jurisdiction which he believes is not timely transmitting the funds required to be paid to the State Treasurer pursuant to subsection (B). The State Auditor is further authorized to conduct these examinations and the local jurisdiction is required to participate in and cooperate fully with the examination. /   //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator WALDREP explained the amendment.

The amendment was adopted.

Amendment No. 37

Senator ELLIOTT proposed the following Amendment No. 37 (DC36.RETIRED GENERAL ASSEMBLY LICENSE TAGS.DOC), which was ruled out of order:

Amend the bill, as and if amended, Part IB, Section 36, DEPARTMENT OF PUBLIC SAFETY, page 422, after line 9, by adding an appropriately numbered paragraph to read:

/ 36.___ (DPS: License Plates for Retired Members of General Assembly) The Division of Motor Vehicles is directed to issue special motor vehicle license plates to former members of the General Assembly who are eligible to receive retirement benefits under the General Assembly Retirement System for private passenger motor vehicles owned by them. The biennial fee for these special license plates is the same as the fee provided in Section 56-3-2020, and only


Printed Page 2644 . . . . . Wednesday, May 14, 2003

one plate may be issued to a member of the General Assembly who is receiving retirement benefits. The plate must be issued or revalidated biennially for the regular registration and licensing period. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator ELLIOTT explained the amendment.

Point of Order

Senator MOORE raised a Point of Order that the amendment was out of order inasmuch as it was violative of Rule 24A.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Objection

Senator RICHARDSON asked unanimous consent to make a motion to take up amendment No. 220A for immediate consideration.

Senator KNOTTS objected.

RECESS

At 7:20 P.M., on motion of Senator MOORE, the Senate receded from business not to exceed five minutes.

At 8:43 P.M., the Senate resumed.

Motion Adopted

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that, when the Senate adjourns, it stand adjourned to meet at 10:00 A.M. tomorrow.

Having voted on the prevailing side, Senator McCONNELL moved to reconsider the vote whereby Amendment No. 5 was adopted.

Senator HAWKINS spoke on the motion.

On motion of Senator McCONNELL, with unanimous consent, the motion to reconsider was withdrawn.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 60.9 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.


Printed Page 2645 . . . . . Wednesday, May 14, 2003

Amend the bill further, as and if amended, Part IB, Section 60, STATE TREASURER'S OFFICE, page 451, Proviso 60.9, by striking line 12 and inserting:

/     operating and management costs associated with the investment management of various state funds and programs, with the exception of funds administered by the S.C. Retirement System, and further,     /

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 9.49 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 9, DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, page 388, Proviso 9.49, line 30, by adding after / Carolina. / the following:

/     In accordance with Section 48-20-100 of the S.C. Mining Act, the following mining and reclamation fee schedules are established:

(1)   Mining Permit Application fee                     $600;

(2)   Mining Permit Conversion fee                     $600
(in lieu of permit renewal);

(3)   Mining Permit Substantial Modification fee           $600;

(4)   Mining Permit Transfer fee                       $600;
and

(5)   Certification of Exploration fee                     $300. /

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 9.50 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 9, DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, page 388, after line 30, by adding Proviso 9.50 to read:

/     9.50.   (DHEC: Drinking Water Construction Application Fees) The department is authorized to charge a fee for review and approval of applications to construct treatment facilities and distribution systems for public drinking water activities. The schedule for fees is as follows:

A.   Distribution systems and related components

1.   1,000 feet or less of line                                 $150


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2.   1,001 feet to 9,999 feet                           $400

3.   10,000 feet or greater                             $600

4.   Distribution storage/pump stations                 $600

B.   Supply/Treatment from Groundwater Sources

1.   Well systems (test well)                           $500

2.   Well systems (follow-up, including

well head piping, storage                             $500

3.   Well Systems (one step)                         $1,000

4.   Treatment systems (except for chemical

feed systems)                                       $500

5.   Chemical feed systems                           $250

6.   Small water system permits                       $250

B.   Supply/Treatment from Surface Water Sources

1.   New Treatment Plants                         $2,000

2.   Expansions of existing facilities                   $1,500

3.   Plant storage, pumping and piping facilities           $500

4.   Chemical Feed Systems                           $250

C.   Drinking Water Dispensing

1.   Stations/Bottled Water Plants                     $500

D.   General Permit (which may include Delegated
Review Program Approval)

1.   Application for permit (not a renewal)             $1,000

2.   Delegated review permit                         $75

E.   Permit Extensions                                 $50

Revenue generated by these fees shall be retained by the department and cannot be transferred to other programs within the department's budget.     /

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 1.73 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
1.73. (SDE: Governor's Schools' Fees) Notwithstanding any other provision of law, the South Carolina Governor's School for the Arts and Humanities and the South Carolina Governor's School for Science and Mathematics are authorized to charge, collect, expend, and carry forward student fees as approved by their respective Board of Directors. The purpose and amount of any such fees will be to maintain program quality in both academics and residential support. No student


Printed Page 2647 . . . . . Wednesday, May 14, 2003

will be denied admittance or participation due to financial inability to pay. The respective Board of Directors shall promulgate administrative policy governing the collection of all student fees.

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 32.8 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 32, ATTORNEY GENERAL'S OFFICE, page 412, after line 36, by adding Proviso 32.8 to read:

/       32.8.   (AG: Securities Fees Increase) The Office of the Attorney General is hereby authorized to collect the following Security Fees which shall remain in effect for all initial, renewal and notice filings described in subsections (A) and (B) of Section 35-1-480 unless and until the securities commissioner promulgates a rule or order establishing different fees:

(1)   Broker-dealer: five hundred dollars annually;

(2)   Broker-dealer agent: one hundred and fifty dollars annually;

(3)   Investment advisors:   three hundred dollars annually;

(4)   Investment adviser representatives:   one hundred dollars annually;

(5)   Federal covered securities (Mutual Funds): six hundred dollars annually.

The Office of the Attorney General is hereby authorized to collect, retain, expend, and carry forward one million five hundred thousand dollars from fee revenues collected pursuant to Section 35 to be used for the operations of the Securities Division. The Attorney General is authorized to transfer to the South Carolina Law Enforcement Division an additional two hundred thousand dollars collected from Security Fees to be retained, expended, and carried forward for the provision of investigators for the State Grand Jury. The funds transferred to the State Law Enforcement Division shall be used only for purposes of the State Grand Jury and may not be transferred to any other program or used for any other purpose.     /

The PRESIDENT sustained the Point of Order.

Proviso 32.8 was ruled out of order.


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Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 36.25 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
36.25. (DPS: DPPA Compliance Audit) The Division of Motor Vehicles may charge fees to defray the costs associated with auditing and enforcing compliance of all Federal or State statutes and regulations pertaining to personal information for customers receiving information disseminated by the department as allowed by law. This provision does not pertain to state agencies. The Comptroller General shall place the funds into a special restricted account to be used by the department.

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 37.28 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
37.28. (CORR: Western Union Funding) All funds received by the S.C. Department of Corrections from the Western Union Quick Collect Revenue Sharing Program or similar private sector entities, which provides payment for processing electronic transfers into the E. H. Cooper Trust Fund, shall be retained by the S.C. Department of Corrections and credited to a fund entitled "Inmate Welfare Fund" to be expended for the benefit of the inmate population.

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 56DD.35 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 56DD, GOVERNOR'S OFFICE, page 447, beginning on line 22, by striking Proviso 56DD.35 and inserting:

/     56DD.35.   (GOV: SLED - Compliance/Underage Alcohol/Tobacco Enforcement) Notwithstanding any other provision of law, all alcoholic liquor, beer, and wine filing fees shall be increased by nine hundred dollars. Provided, that when a person purchases more


Printed Page 2649 . . . . . Wednesday, May 14, 2003

than one business location in a single transaction, only one additional nine hundred dollar fee is required. Provided further, that when a person licensed to sell alcoholic liquor or beer and wine moves his or her business to a new location in the same county that was licensed in the same manner within ninety days of the time of the move, the person may use his or her current license and is not required to initiate a new application upon approval by the department. The nine hundred dollar additional fee does not apply to daily or annual temporary permit applications. These additional funds shall be collected by the Department of Revenue and as soon as practicable allocated to the State Law Enforcement Division to offset the costs of inspections, investigation, and enforcement. SLED is authorized to receive, expend, and carry forward these funds.     /

The PRESIDENT sustained the Point of Order.

Section 56DD.35 was ruled out of order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 56DD.37 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
56DD.37. (GOV: SLED - Coin Operated Device Enforcement) The Department of Revenue is authorized to assess an additional fee of fifty dollars on each Class Two coin operated machine license authorized in Section 12-21-2720. These funds shall be collected by the Department of Revenue and sent to the State Law Enforcement Division to offset the cost of video gaming enforcement. The State Law Enforcement Division shall retain, expend, and carry forward these funds.

The PRESIDENT sustained the Point of Order.

Section 56DD.37 was ruled out of order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 64.11 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
64.11. (DOR: Tax Amnesty) To encourage the payment of taxes owed to the State, and prior to the effective date of legislation allowing for assessment of the cost of collection, the General Assembly finds it desirable to establish a period during which the South Carolina


Printed Page 2650 . . . . . Wednesday, May 14, 2003

Department of Revenue shall waive penalties and one-half of the interest imposed under Title 12 of the 1976 Code payable to the Department of Revenue for any taxpayer who pays all taxes, interest and costs owed. The General Assembly finds that the State's cost of collecting overdue tax debts exceeds twenty percent (20%) of the debts. The General Assembly finds that the cost of collecting overdue tax debts is currently borne by taxpayers who pay their taxes on time. It is the intent of the General Assembly that this cost be borne by the delinquent taxpayers who owe overdue tax debts.

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 64.18 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 64, DEPARTMENT OF REVENUE, page 470, after line 6, by adding Proviso 64.18 to read:

/     64.18.   (DOR: Cigarette Tax Stamp Program) The department must be reimbursed for the costs of cigarette stamps and the administration of the stamp program out of the tax imposed pursuant to Section 12-21-620.     /

The PRESIDENT overruled the Point of Order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 22.11 of H. 3749 as passed by the House was out of order inasmuch as it was violative of Rule 24A.
22.11. (AGRI: Private Sector Calibrations) Notwithstanding any other provision of law, the Department of Agriculture shall charge a fee of $45.00 an hour based on a fee schedule for all calibrations performed for private sector entities by the Metrology Laboratory authorized by Section 39-9-68(3) of the 1976 Code of Laws. Revenues generated by these fees shall be for use by the Department of Agriculture to offset expenses incurred in operating the Metrology Laboratory.

The PRESIDENT overruled the Point of Order.


Printed Page 2651 . . . . . Wednesday, May 14, 2003

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 49.5 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 44, DEPARTMENT OF CONSUMER AFFAIRS, page 431, after line 34, by adding Proviso 49.5 to read:

/     49.5.   (CA: Registered Credit Grantor Notification and Fee) The Department of Consumer Affairs may collect a fee of one hundred twenty dollars for persons required to file Consumer Credit Grantor Notification under Section 37-6-203. The department may retain thirty dollars of the fee to offset the cost of administering and enforcing Chapter 6 of Title 37 of the S.C. Code of Laws. The department may collect a fee of forty dollars per location for persons required to file maximum rate schedules under Section 37-2-305 and Section 37-3-305. The department may retain thirty dollars of the maximum rate schedule filing fee to offset the cost of administering and enforcing Chapters 2 and 3 of Title 37 of the S.C. Code of Laws. The revenue generated and retained for the department may be applied to the cost of operations, and any unexpended balances may be carried forward to the current fiscal year and utilized for the same purposes.     /

The PRESIDENT sustained the Point of Order.

Proviso 49.5 was ruled out of order.

Decision by the PRESIDENT

The PRESIDENT took up the Point of Order raised by Senator HUTTO that Proviso 50.14 of the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24A.

Amend the bill further, as and if amended, Part IB, Section 50, DEPARTMENT OF LABOR, LICENSING AND REGULATIONS, page 433, beginning after line 6, by adding Proviso 50.14 to read:

/     50.14.   (LLR: OVP-Labor Fines Surcharge) A twenty-five dollar surcharge is levied on all fines imposed by Division of Labor programs for violations of OSHA standards, Elevator and Amusement Ride, Payment of Wage, and Child Labor laws. A one thousand dollar surcharge is levied on all failure to abate citations. No portion of the surcharge may be waived, reduced, or suspended. The revenue collected will be retained by the agency and used to offset operating costs of the division.     /

The PRESIDENT sustained the Point of Order.


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Proviso 50.14 was ruled out of order.

On motion of Senator LEATHERMAN, debate was interrupted by adjournment.

MOTION ADOPTED

On motion of Senators SETZLER, ALEXANDER, ANDERSON, BRANTON, COURSON, CROMER, DRUMMOND, ELLIOTT, FAIR, FORD, GIESE, GLOVER, GREGORY, GROOMS, HAWKINS, HAYES, HOLLAND, HUTTO, JACKSON, KNOTTS, KUHN, LAND, LEATHERMAN, LEVENTIS, MALLOY, MARTIN, MATTHEWS, McCONNELL, McGILL, MESCHER, O'DELL, PATTERSON, PEELER, PINCKNEY, RANKIN, RAVENEL, REESE, RICHARDSON, RITCHIE, RYBERG, SHORT, J. VERNE SMITH, THOMAS, VERDIN and WALDREP, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mrs. Paula Caren Moore White, 31, of Cayce, S.C., beloved daughter of the Honorable Paul Moore, and niece of our colleague, Senator MOORE.

ADJOURNMENT

At 8:59 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 10:00 A.M.

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