I. Budget Highlights

II. Detailed Summary of Recommendations

III. Appropriations Summary By Agency

IV. Summary of Selected Part II Permanent Provisions

V. Index to Part II Permanent Provisions

VI. Vetoes Sustained Affecting H. 4600, General Appropriations Act

VII. Summary of Other Enacted Ways and Means Legislation

Revenue and Appropriation Bills

The General Appropriation Bill, H. 4600, includes $4.3 billion in General Funds.

Included is projected recurring revenue growth over the current year of about $270.6 million or 4.5%.

The bill contains no general tax or fee increases.

Non-recurring funds total $ 310 million and includes:

1. The 94-95 surplus, which totals $ 80,584,073 is Part III. of H.4600.

2. Part IV. of H. 4600 appropriates the $64,203,298 from the FY 95-96 Carnell-Felder set-aside for continuation funding of the Property Tax Relief Fund.

3. The 95-96 projected surplus, which includes the Carnell Felder set-aside funds, totals $74,697,794, and is Part V. of H.4600.

4. The Capital Reserve Fund bill, H. 4602 which totals $80,500,000.

5. A Joint Resolution, H. 4425 appropriates $10,000,000 for the State House Renovation from the FY 94-95 surplus.

In addition, the "contingent" surplus for FY 95-96 is appropriated in Part VI. of H. 4600 and totals $185,103,432.

Public Education

General funds are increased by $73.7 million, $23.6 million in Capital Reserve Funds are provided and $8.5 million in surplus funds are earmarked for public education for a total of $105,800,000.

Education Finance Act funding is increased by 4.5%

This increase includes an "extra" one percent to "make up" for the prior year's under-funding of inflation costs.

The base student cost is funded at $1,760, an increase of $76 over the current year.

Kindergarten

An extended day five year old kindergarten is funded for "at-risk" 5 year-old children.

This will be an optional program and funding is allocated to the districts on the number of free and reduced lunch students.

Funding for expansion of the program is left up to the next General Assembly.

Teacher salaries are raised to the southeastern average of $32,668, a 3.4% increase.

$21,600,000 is provided in new EIA funds. $10 million of EIA funds will be used along with $10 million in Capital Reserve Funds for school technology.

$22,000,000 is placed in an "innovation fund" and districts are given flexibility in setting local priorities for improving educational program results.

Public School Building Aid

$90,000,000 in "Barnwell" funds are provided for school facilities. A separate conference committee on S.1117 reached an agreement late in the session on a plan to provide the funds to the school districts based upon the following formula: 35% Weighted Pupil Units, 35% EFA, 15% on a needs formula and 15% on effort.

The districts' needs are found by comparing each school's enrollment to its building size and age.

The districts' effort is based on an average of the past capital expenditures used to meet the districts' building needs.

Higher Education

The Commission on Higher Education is funded at the same level as was funded in both House and Senate versions- $2,834,200 in additional appropriations.

The same is true for Tuition Grants- $2,530,736 in additional appropriations.

Higher Education institutions receive additional funding of $15,500,000 in recurring funds.

This is in addition to the continuation of non-recurring funds totalling $33.7 million.

$10,000,000 is provided for Special Schools for training employees at new or expanding industries.

$2.8 million is also provided for equipment for TEC Schools.

Student Financial Assistance

One-half is earmarked for scholarships and one-half is to allocated based on students' financial need.

A Part II provides for the eligibility criteria for needs-based grants for students attending public higher education schools.

The Palmetto Fellows program is expanded with this additional funding for scholarships.

Higher Education Building Aid

Over $70,000,000 in non-recurring, contingent surplus funding is included for higher education facilities.

Tax Relief

The Conference Committee provides funding to maintain the $100,000 property tax homestead exemption for school operating expenses based on the 1995 millage rate.

This requires additional appropriations of $104,000,000 for a total annual commitment of $213,700,000.

The third year phase-in towards a doubled tax exemption for children under six is funded by an additional $10,000,000.

The current $20,000 property tax homestead exemption for senior citizens is maintained by providing an additional $2,400,000 for growth in the number of persons eligible.

The Appropriations Act includes a Part II permanent provision which will equalize manufacturers depreciation over a three year period beginning with the 1997-98 fiscal year.

Economic Development

The Coordinating Council is provided $30,000,000 to assist in attracting new industries to the state through infrastructure development.

This includes road and highway improvements, and depending upon the prospect's investment, the funds may be used for site improvement such as grading, water and sewer.

Funding for the Commerce Department is increased by $1,700,000 to assist in maintaining existing and developing new industry for South Carolina.

About $1,000,000 of these recurring funds will aid the agency with trade development in foreign markets and in the development of economic "clusters."

$7,400,000 is reverted from the General Fund to the Highway Fund for road construction and maintenance.

A change in law provides that effective June 1, 1997, the one cent gas tax presently deposited in the State's General Fund will be deposited in the Highway Fund, an annual increase of $20,300,000 for roads.

Health and Social Services

Health & Social Service agencies are provided $50,400,000 for Medicaid, welfare, and programs for children and persons with disabilities.

This includes a $9,000,000 base budget increase for Medicaid in anticipation of a possible new Federal Medicaid Block Grant.

In addition $12,000,000 is provided to continue programs for about 1,600 Emotionally Disturbed Children which is currently funded with non-recurring funds. An adopted Senate amendment transfers the line item appropriation to DSS. $4,700,000 is provided for programs serving persons with disabilities including autism, head and spinal cord injuries, mental retardation and other disabilities.

DHEC was given $7,100,000 in supplemental funds for immunizations. South Carolina is ranked number one nationally for immunization rates of children two years of age and younger.

In addition, the Senate chose to fund 300 new nursing home beds for $2.1 million and provided funding of $1.5 million for 800 persons to be served by the Community Long Term Care program.

Criminal Justice

$6,000,000 is provided for new judges, and technology.

$1,400,000 is provided for increases for circuit solicitor salaries. State support of circuit courts is increased from $1.22 to about $1.60 per capita.

$24,600,000 is provided for prison openings in Ridgeland and Kershaw and for officer pay increases.

A 12% pay raise is provided for all correctional officers. Eight percent is funded by the agency and four percent is provided in these appropriations.

$16,800,000 in non-recurring funds is provided for equipment, maintenance and construction of new prisons.

The Department of Juvenile Justice is provided $29,500,000 for decentralization and lawsuit compliance.

State Employee Pay Raise

The state employees pay plan provides a 3.4% cost of living increase effective October 1, 1996. There is no increase in costs to employees for health insurance, but there is a 19.5% rate increase for dental insurance, effective January 1, 1997.

State Government Performance Audit

A section in Part VI. of H. 4600, the contingent surplus, provides for a Performance Audit Steering Committee consisting of twelve members.

The committee is to study duplication, evaluate technologies and make recommendations for elimination of duplicate programs and services, streamlining government, and reallocation of resources for increased effectiveness.

The committee is to supervise the work of a contractor who is to submit a report to the Governor and the General Assembly by December 31, 1997.

$2,000,000 in contingent surplus funds is appropriated for the study.

Members of the General Assembly Convicted of a Felony

This proviso provides that 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.

However, this item does not apply to a person who has been pardoned under state or federal law of the disqualifying felony.

Property Tax Relief

The General Assembly provides an appropriation increase of $104,428,746 to pay for residential property tax relief from school operating property taxes. Of this amount, $8,238,094 covers a shortfall in the 1995 Property Tax Relief Fund. A total of $96,190,652 is provided for the 1996 Property Tax Relief Fund. This appropriation maintains the exemption from residential school operating property taxes at $100,000 of home value, using 1995 millage rates. Total funding for this exemption will be $213,700,000, of which $149,496,702 is in General Funds. The remainder, $64,203,298, is to be funded by the FY 95-96 Carnell-Felder Set-Aside fund, which, by law, must be used for property tax relief if it is not needed to cover a revenue shortfall in the General Fund budget.

Homestead Exemption

The General Assembly increases appropriations by $2,449,289 to cover growth in the property tax exemption for persons age 65 or older. This will bring total state appropriations for the Homestead Exemption to $49,929,704.

Pay Plan & Benefits

The General Assembly appropriates $35,152,933 for a 3.4% base pay increase for state employees. This increase will be effective October 1, 1996. The General Assembly also appropriates a total of $1,469,393 for the State Dental Plan. $1,332,777 funds the employer share of a 19.5% dental rate increase. Employee premiums will also increase by 19.5%, the first dental rate increase in eleven years. The remainder of the appropriation increase, $136,616, will pay the dental premiums for an estimated 1,450 new state retirees. For the sixth consecutive year, employee premiums for the State Health Plan will not increase.

Election Commission

The General Assembly appropriates $1,435,190 for 1996 General Election expenses. This includes an increase in Poll Managers pay from $25 per day to $35 per day. The General Assembly also increases the base budget of the Election Commission by $500,000. County Election Commission and Voter Registration Board members annual supplements are increased to $1,000 at a cost of $138,000. Appropriations for computer services related to voter registration lists are increased by $250,000. Also, $112,000 is appropriated to assist compliance with the federal Motor Voter law.

Legislative Agencies

The General Assembly appropriates an increase of $1,248,820 for the Senate. This amount includes $611,762 for restoration of 80% of the Governor's FY 95-96 veto. The remainder, $637,058 provides increased funding for Subsistence, Employer Contributions and other operating expenses.

The General Assembly approves a net appropriation increase of $651,771 for the House of Representatives budget. $500,000 is appropriated to restore 80% of the Governor's veto in the FY 95-96 budget. The appropriation for Blatt Building rent, $1,026,409, is deleted. Member Subsistence is increased by $555,768, Approved Accounts is increased by $123,504 and Employer Contributions are increased by $684,519. These increases resolve shortfalls in these accounts which have occurred for the last several years. Appropriations for joint committees chaired by House members are reduced by $185,611. The following House joint committees are abolished effective July 1, 1996: Textile Apparel, Children's Study and Tourism and Trade. Joint Appropriations Review (JARC) is abolished effective January 1, 1997. House-chaired joint committees which remain are Joint Bond Review and Aging.

Legislative Council's appropriations are increased by $220,000. This increase will be used to partially restore the Printing Code Supplement account.

Adjutant General

The General Assembly appropriates a total increase of $591,000 for the Adjutant General. These funds will cover shortfalls in several line-items, including Armory Maintenance and Employer Contributions.

Budget and Control Board

The General Assembly provides a direct appropriation of $1,986,339 for Capitol Complex rent. This appropriation funds the rent on the Blatt Building, $1,026,409, the Gressette Building, $567,910, the Brown Building (Senate Bookkeeping), $13,151, and the Supreme Court, $378,869.

The General Assembly approved an appropriation of $420,000 to fund the Debt Service related to the New Ellenton bond default.

The General Assembly also appropriates $150,000 for the Equity Lawsuit. This funding will be used to pay attorney fees to defend the State in the suit filed by forty school districts.

The General Assembly restores funding for Leadership South Carolina at $93,155. Funding for this leadership training program was vetoed last year.

The General Assembly also restored funding for the Local Government Grant Program Fund on a one-time basis. This item was vetoed by the Governor in the FY 95-96 budget.

State House Renovation

The General Assembly appropriates a total of $30,256,527 to continue funding the Statehouse renovation project on a cash basis. The most current cost estimate for this project, including expenses for rent and renovating of the Carolina Plaza, is $54,204,870.

Commission on Higher Education

The General Assembly increases the agency's base of $4.1 million by $224,200 for SREB fees. The Southern Regional Education Board (SREB) provides various services and reports for the State regarding higher education. Current dues are $141,000, which were vetoed in 1995. The Board also administers a program among institutions in the South for degree programs in veterinary and optometry. The amount appropriated by the State is $976,450. $44,050 in additional funds is appropriated for the actual costs of the program. An additional $39,150 in non-recurring funds is provided as this amount was vetoed in the current year's Appropriation Act. South Carolina students at these programs include Tuskegee University (AL) and the University of Georgia for veterinary medicine and the Southern College of Optometry (TN) and the University of Alabama-Birmingham for optometry. These funds pay the difference between in-state and out-of-state tuition for South Carolina residents who wish to attend these schools.

Experimental Program to Stimulate Competitive Research

$2,000,000 is provided for EPSCOR as matching funds to assist higher education compete for federal research funds. EPSCOR stands for Experimental Program to Stimulate Competitive Research. It is designed to assist scientists and engineers in the poorer funded states to improve their research competitiveness by enabling them to receive a significantly larger amount of federal funding from the National Science Foundation and other Federal agencies. The major objectives are faculty development, human resource development and bridging of state/industry/university science and engineering interests. This includes the addition of the new faculty, support staff, and support for graduate students. The State has appropriated $2 million in non-recurring funds during the current year. This $2 million in State Funds will match $2 million in Federal funds to be used by USC, Clemson and MUSC.

South Carolina Alliance for Minority Participation

$600,000 is provided for the South Carolina Alliance for Minority Participation (SCAMP) which is designed to increase the number of African-American undergraduate students who pursue Ph.D. opportunities in science, engineering, and mathematics. Included in this program are financial and mentor support, summer workshops, research programs, and detailed evaluation and assessment programs. The National Science Foundation stipulates that states receiving funds should provide matching funds for five years. Most of these funds will be distributed equitably among the SCAMP institutions on a competitive basis. SCAMP received non-recurring funds this year of $600,000.

Colleges and Universities

Current year formula funding for colleges and universities (both recurring and non-recurring funds) of $614 million is increased by $15.5 million, which is a 2.5% increase. Funding for the formula from non-recurring funds is reduced from the current year's $53.2 million to $33.7 million for FY 96-97.

Scholarships and Grants

A proviso in the CHE section provides for the allocation of "Barnwell" funds. The estimate of available funds for scholarships and need-based grants is $21 million. Part II, Section 24 designates 18% for independent colleges. This funding will be divided into two programs: Tuition Grants and Palmetto Fellows. Eighty-two percent of the $21 million in new funds is designated for public institutions. Likewise these funds will be divided between scholarships and need-based grants.

Tuition Grants funding for independent colleges is increased by $312,000 to $17,876,872. Last year 8,400 grants averaging $2,000 each were awarded to students attending one of the twenty accredited independent colleges which participate.

Medical University of South Carolina

Through a proviso, MUSC is directed to increase funding for the Diabetes Center by $73,000. The purpose of this program is to develop and implement a statewide plan of community outreach programs.

TEC and Special Schools

Special Schools funding is increased $12.8 million- $6 million in surplus funds and $6.8 million in contingent surplus funds. This year the schools received $5 million in recurring funds and $5 million in non-recurring funds. Last year, Special Schools trained 9,400 students at 183 industries.

Educational Television

ETV's funding was reduced by $500,000. Surplus funds of $500,000 is provided to restore the base budget.

Higher Education Capital and Other Special Projects

The supplemental bill includes on the projected, "contingent" supplemental list (in millions):

$10.0 - USC Science Research Center
$ 8.0 - Clemson's-Central Energy Facility
$ 4.75 - Piedmont TEC
$ 9.0 - College of Charleston- Library
$ 1.325 - Lander University- Science Hall renovation
$ 1.5 - USC Spartanburg- renovation
$ 4.0 - Chesterfield-Marlboro TEC- new building
$ 3.0 - Winthrop University- Sims Math/Science Building
$ 1.0 - South Carolina State University- Business School
$ 7.0 - Coastal Carolina- Humanities Building
$ 1.5 - USC Aiken
$ 5.0 - The Citadel- Thompson Hall
$ 2.5 - USC Columbia- Arena
$ 1.0 - TEC of the Low Country
$ .5 - Francis Marion- Energy Facility
$ 2.0 - South Carolina State- Fine Arts Building
$ 2.5 - York TEC- Arts/Sciences Building
$ 5.0 - Midlands TEC- Phase II Classroom Building
$ .5 - South Carolina State
$ .6 - South Carolina State University- Camp Daniel
$ 1.0 - USC Columbia- Purchase of Columbia Museum of Art Building

===== Total of these projects: $71,675,000

For FY 1996-97, the General Assembly authorized an increase of $231.5 million for public education. The funds are provided from several sources. A total of $105.8 is appropriated from the General Fund ($73.7 million), the Capital Reserve Fund ($23.6 million), and from FY 1994-95 surplus funds ($8.5 million). The Education Improvement Act (EIA) will provide an increase of $21.7 million. The Children's Education Endowment Fund is estimated to be approximately $90 million for school facilities. Also included is $14 million contingent upon FY 1995-96 surplus funds becoming available.

The Education Finance Act and the related employer contributions are funded with $54.2 million. The EFA is funded on a Base Student Cost of $1,760. The projected inflation rate for FY 1996-97 is 3.5%; however, the General Assembly approved a Base Student Cost inflation rate of 4.5% in order to "catch- up" for the loss of revenue in FY 1991-92. The inflationary increase required for the local financial effort applies only to the 3.5%. The total number of weighted pupil units for FY 1996-97 is 765,000, an increase of 5,000.

The Legislature appropriated funds to maintain the Southeastern Average Teacher's Salary. The average teacher salary is expected to increase 3.4% to $32,668, an increase of $1100 over the $31,568 estimated for FY 1995-96.

The General Assembly passed a total increase of $5.7 million for school bus drivers salaries and associated fringe benefits. This includes $4.5 million to ensure that school bus drivers salaries are fully funded and $1.2 million for a 3.4% pay increase.

The Legislature agreed to provide $14.1 million for full-day kindergarten for "at-risk" five-year-old children. Funds will be distributed to districts based on the number of students eligible for the federal free and reduced lunch program and according to the Education Finance Act formula. The program is optional for school districts and parents, and a local match is required as with all EFA programs.

The General Assembly approved $20 million to begin the development of a statewide educational technology initiative, designating $10 million from the Capital Reserve Fund and $10 million from Education Improvement Act (EIA) funds. Contingent items from the FY 95-96 surplus funds $5 million for the Governor's School for Science and Math and $9 million for the Governor's School for the Arts. These items will be funded if surplus funds beyond the revenue forecast are realized.

In the FY 1994-95 surplus bill the Legislature appropriated $8.5 million to hold harmless "wealthier" school districts as the allocation of fringe benefits is weighted more on the EFA formula. A FY 1994-95 permanent provision phases in the allocation of employer contributions by 10% each year to 100% EFA formula. For FY 1996-97 the allocation will be based on a 20% weighted pupil method and 80% EFA formula.

The General Assembly added $13.6 million in nonrecurring funds from the Capital Reserve Fund for instructional materials (textbooks) providing for a total of $30.7 million, a $3.6 million increase over FY 1995-96. FY 1995-96 surplus funds of $25,625 are also recommended for an inflationary increase for the facilities contract between the Governor's School for Science and Math and Coker College.

Funds of $1.2 million are appropriated to be transferred from Day Care Centers to fund districts' employer contributions. This will restore funding of employer contributions with state funds rather than EIA funds. Day care will be funded under the EIA Four-Year-Old Early Childhood program.

The State Department of Education's administrative budget was reduced by $600,000. Vocational agriculture education received $296,200 which will be transferred by proviso to Clemson Public Services Activities.

Senate Bill 1117 provides approximately $90 million for public school facilities assistance from radioactive waste taxes to be collected in FY 1995-96 and FY 1996-97. Funds will be allocated annually to school districts based on a formula consisting of 35% weighted pupil units, 35% the Education Finance Act formula, 15% need, and 15% effort. Need is determined by comparing each school's enrollment to its building size and age. Effort is based on the average of the past capital expenditures used to meet the districts' building needs. Allocations to the Department of Juvenile Justice, Wil Lou Gray Opportunity School, John De La Howe, and the School for the Deaf and Blind will be based 100% on weighted pupil units.

Education Improvement Act

The Education Improvement Act (EIA) funding as a result of the penny sales tax increased by $21.7 million. The Legislature appropriated $10 million to begin the development of a statewide educational technology initiative in addition to $10 million provided in the Capital Reserve Fund.

In order to promote flexibility and continuous improvement in all schools and districts, the General Assembly created a $22 million Local School Innovation Fund by combining various EIA programs. Funds will be distributed to districts based 50% on the average daily membership and 50% on the Education Finance Act formula.

The legislative members voted an increase of $4.9 million for Teacher Salaries and Employer Contributions as part of meeting the southeastern average.

Funds of $997,640 are to be transferred from Employer Contributions-Special to the Four-Year-Old Early Childhood program in order to fund the Day Care Centers that are now funded with State General Funds. This transfer will restore funding of employer contributions with state funds rather than EIA funds as funded in FY 1995-96.

EIA changes are detailed on the following page.

Special Schools

For Wil Lou Gray the Legislature appropriated $15,000 for food service support and from the Capital Reserve Fund $165,000 for dormitory furniture and roof repairs in addition to $50,000 for replacing the telephone system.

For the School for the Deaf and Blind the General Assembly elected to provide $883,650 as follows: $220,500 for 24 hour security, $10,000 for the Association for the Deaf for leadership training, $350,000 (CRF) for dormitory refurbishing and equipment, and $128,150 (FY 95-96 Surplus) for training and staff development. A total of $175,000 ($44,000 FY 95-96 Surplus) was appropriated for a Rock Hill Outreach Service Center for the deaf and blind community.

The Legislature added $50,000 for food and utilities for John De La Howe and $65,000 (CRF) for building maintenance.

Department of Health & Human Services

For the current year, $20.6 million was funded in non-recurring funds. The House bill for FY 96-97 annualizes the $20.6 million to provide the same level of client services as in the current year. Funding was maintained for the Emotionally Disturbed Children's program, which received $12,000,000 in non-recurring dollars this year to pay for therapeutic treatment services. The Senate transferred the $12 million in non-recurring funds and $4.1 million in the base for services for emotionally disturbed children to DSS for greater accountability purposes. An appropriation of $4 million was made to adjust nursing home rates based on cost reports. Projected Medicaid client growth was covered with an additional $6,000,000. Another $2 million was provided to add 300 nursing home beds, which reduced the waiting list by half. The Senate appropriated $1.6 million to serve 800 more persons in the Community Long Term Care program, which reduced that waiting list by 20%.

Department of Health & Environmental Control

Funding for the prevention of vaccine-preventable diseases and other communicable diseases was provided in non-recurring dollars for a total of $7.1 million. In addition, $500,000 was appropriated on the wish list - $250,000 for Emergency Medical Services and the remainder for the AIMS computer system.

Department of Disabilities and Special Needs

Almost $2 million was appropriated to provide housing for another 200 persons with disabilities who are in critical, life-threatening situations. To prevent out-of-home placements, $1.5 million was funded for individual and family support services, such as home modifications, daytime supports, personal care, and specialized equipment.

Department of Social Services

To continue to implement the Family Independence Act, the House appropriated $2 million in non-recurring funds to provide employment and training services for AFDC recipients. About $700,000 was included to match a Kellogg grant to reduce the time children wait in foster care and adoptive services for a permanent placement. As mentioned previously, a total of $16.1 million for emotionally disturbed children was transferred from the Department of Health and Human Services to the Department of Social Services.

Commission for the Blind

Vocational rehabilitation services for the blind and visually impaired was funded at $380,000, which allows South Carolina to draw down its full federal share of $1.4 million dollars. In addition, $100,000 was provided to help prevent blindness through eye exams and treatment. Roof repairs were funded at $390,000.

Department of Alcohol and Other Drug Abuse Services

"The Bridge", an alcohol and drug abuse treatment program for adolescents being released from DJJ, was funded with $400,000 in non-recurring dollars.

Department of Mental Health

DMH requested the deletion of a proviso requiring $3.8 million in the Patient Paying Fee Account to be remitted to the General Fund. Although the proviso was not deleted, $3.8 million was provided on the supplemental funds "wish list".

State Library

The General Assembly appropriated $589,049 recurring dollars for the State Library. Of the appropriated dollars, $339,049 is provided to increase per capita aid to county libraries from $1.25 to $1.35. Additionally, $200,000 is provided to support the State Library statewide interlibrary loan program. Also, $50,000 is provided for computers upgrades.

S.C. Arts Commission

The General Assembly appropriated $200,000 recurring dollars for grants which are used to support the state's arts and cultural industry.

Archives and History

The General Assembly provided $38,100 recurring and non-recurring dollars. $25,000 non-recurring dollars is provided to develop and distribute curriculum resources material for the state's history teachers. The General Assembly also provided $2,000,000 in surplus funds and $5,500,000 in contingent surplus funds toward construction of the S.C. History Center.

SC State Museum Commission

The General Assembly appropriated $118,676 recurring dollars for the State Museum. Of the appropriated dollars, $19,600 is provided for promotion, $51,463 for the Discovery Room and $47,613 for the Planetarium.

Department of Agriculture

The Department of Agriculture was provided $702,800 recurring and non-recurring dollars. $200,000 is appropriated to construct a 50,000 square foot retail shed area for the retail and wholesale horticulture products at the Columbia State Farmers' Market. Also, the General Assembly appropriated $452,000 for replacement of two large scale test trucks and repair of several facilities at the Greenville Farmers Market.

Forestry Commission

The Forestry Commission is appropriated $825,000 recurring and non-recurring dollars. $125,000 recurring dollars is provided so Forestry Commission fire fighters and law enforcement personnel can participate in the Police Officers Retirement System. Other appropriations include $100,000 for the Forest Renewal Program and $400,000 for the H. Cooper Black Jr. Memorial and Field Trial Area. Also, the General Assembly appropriated $200,000 in for Pine Beetle Eradication.

Department of Natural Resources

The Department of Natural Resources is appropriated an additional $957,000 recurring dollars and $1,317,295 non-recurring dollars. Of this amount, $500,000 is dedicated to increase DNR law enforcement salaries. The increase will allow the agency to establish pay equity for these positions. $92,000 is provided for Aid to Conservation Districts. This $92,000 will provide an additional $2,000 for each conservation district. Other appropriations include funding for equipment replacement, operating expenses, and construction of a new office facility for the Wildlife and Freshwater Fisheries function. Other funding is provided for replacement of law enforcement vehicles ($340,000) and aquatic weed control ($200,000) in contingent surplus funds.

Parks, Recreation and Tourism

In recurring funds, PRT reduced their budget by $1,000,000. This is the fourth year of a five year plan for PRT to be removed from state funding. The General Assembly appropriated $300,000 for Palmetto Trails. Additionally, the General Assembly provided $1,000,000 in contingent surplus funds for Discovery Centers along the Heritage Corridor should excess surplus funds exist.

Clemson-PSA

In recurring funds, Clemson-PSA was appropriated a $725,240 recurring and non-recurring funds for State Livestock-Poultry Health Program Operations.

Additionally, the General Assembly appropriated $500,000 recurring dollars for the Ornamental, Horticulture and Turfgrass program; $130,000 recurring dollars for an Urban Entomologist; $25,000 for Peach Orchard Inspection; and $50,000 for the Rural Recreational Project. Additionally, $600,000 non-recurring dollars is provided for partial replacement of the greenhouses at Clemson University. $2,400,000 is funded in the contingent surplus funds for replacement of the other greenhouses. Funding of $600,000 for Camp Long and FLAX research is provided in contingent surplus funds. Camp Long is used by groups such as SC Dept. of Corrections, SC Dept. of Juvenile Justice, SC Public and Private Schools, and 4H Clubs.

Department of Commerce

The General Assembly appropriated an additional total of $31.7 million for economic development. Approximately $1,000,000 in recurring dollars will aid the agency with trade development in foreign markets and development of economic clusters. The $712,450 non-recurring money appropriated will assist the agency in restoring part of its advertising budget; establishing a trade office in Frankfurt, Germany; and funding the shortfall in the exchange rate for the Foreign Offices. The General Assembly provided $30,000,000 to the Coordinating Council to assist in attracting new industry to the state by providing infrastructure development. Also, above these amounts, an additional $3,000,000 in contingent surplus funds is provided for airport improvements should excess surplus funds exist.

Department of Health and Environmental Control

The General Assembly appropriated $1,000,000 non-recurring dollars to implement to Environmental Facility Information System. This system will promote economic development by streamlining the permitting process and providing access to environmental information. An additional $729,266 is provided in contingent surplus funds for the Environmental Facility Information System.

Judicial Department

The General Assembly appropriated to the Judicial Department $4,999,936 in recurring dollars to fund new judges, information technology, judicial standards, court reporters, participation in the National Conference of State Courts, support for the Court of Appeals, and operations in Circuit and Family Courts. $1,046,400 is appropriated in the Surplus for new judges, the alternative dispute resolution program, and judicial rotation-travel. In addition, there is $231,605 on the wish list for new judges and equipment. The General Assembly also adopted a Part II that changes the tier system for judicial salaries by making all judges salaries relative to the salary of Associate Justices and by removing the solicitor salaries from the tier system to be provided for in a new section.

Sentencing Guidelines Commission

The Sentencing Guidelines Commission's appropriation includes $71,000 in recurring dollars and $6,000 in the Surplus for a statistician, furniture, computer equipment, and operating expenses.

SLED

The appropriation for SLED is $420,641 in recurring dollars for officer pay equity and for a transfer of two investigators from the Attorney General's Office. $1,866,000 is on the wish list for the agency to fund vehicles, DNA Banking Lab, Datamaster (parts and equipment), and security officer for the Attorney General.

Attorney General

The General Assembly appropriated $843,644 in recurring dollars for the Attorney General to fund a statewide grand jury, obscenity prosecution unit, insurance fraud unit, youth mentor program, and a transfer of the securities and public charities divisions from the office of the Secretary of State. $50,000 is appropriated in the Surplus for computer upgrade. In addition, two investigators are to be transferred to SLED from the agency.

Prosecution Coordination Commission

Prosecution Coordination Commission's appropriation includes $2,028,087 in recurring dollars for judicial circuit and state support, administration, and circuit solicitor salary increase. $614,053 is also appropriated in the Surplus for judicial circuit and state support.

Appellate Defense

The appropriation for Appellate Defense is $72,959 in the Surplus for rent and printing expenses.

Commission on Indigent Defense

For the Commission on Indigent Defense, $1,500 in the Surplus is recommended for maintaining standards.

Department of Public Safety

The General Assembly appropriated $29,220,284 in recurring dollars to the Department to fund a new trooper class and to transfer DMV from the Dept. of Revenue. There are also Part II's that provide for the sale of motor vehicle information and restrictions for such sales.

Department of Corrections

The Department appropriation is $20,195,699 in recurring dollars for the annualization of Ridgeland, officer pay increase, and medical services. $6,146,000 is appropriated in the Surplus for vehicles/maintenance and opening Kershaw. There is also $16,713,445 on the wish list for institutional maintenance, opening Kershaw, and other operating expenses.

Department of Probation, Parole and Pardon

The General Assembly appropriated $1,658,116 in the Surplus for the Department to annualize agents in the community control system. $500,000 in recurring dollars is to be transferred from the agency to the Prosecution Coordination Commission for judicial circuit and state support. There are also provisos for the electronic monitoring program and for fee assessment of participants in the program.

Department of Juvenile Justice

The appropriation for the Department is $10,974,203 in recurring dollars towards efforts to decentralize facilities, programs/services, classification, assessment, and improving security and conditions. The agency is also appropriated $10,097,630 in the Surplus for construction/renovation. Moreover, $8,450,997 is on the wish list for the agency. There are also provisos increasing the pay for parole board members to $200 a day and providing for the electronic monitoring program.

Human Affairs Commission

The FY 96-97 budget provides $25,000 for in-state travel for the commission's 15 investigators. This increase will provide additional funding for in-state travel for the investigators to conduct on-site visits during investigations. On-site visits allow investigators to verify/clarify information received in written complaints, and also help resolve inconsistencies in information. The House also approved $12,000 for an increase in lease costs for office space. The agency leases 11,000 square feet of office space in Columbia.

Also included in the 96-97 budget are non-recurring funds totalling $150,000 to fund five investigators. The Commission received $150,000 in non-recurring funds in the FY 95-96 budget to fund these investigators. The investigators were to be funded in FY 96-97 using Federal funds received from the EEOC. However, the investigators did not handle an average number of cases because of training. The Commission states that the 5 investigators are just starting to handle the normal caseload. The investigators handle employment discrimination complaints. Approval was granted for $24,000 in non-recurring funds for computer hardware and software upgrades. This will allow the Commission to purchase hardware and software to insure compatibility with the EEOC, which is moving to a DOS/Windows environment. The Commission currently has limited computer capability. According to staff, most reports are done on typewriters. Data processing tasks are handled using outdated Apple hardware.

Commission on Minority Affairs

The budget contains an increase of $42,861 to cover the salary and fringe benefits for two new FTEs and an upgrade of an existing position. The new positions will allow the Director to do more assessment of program initiatives, to seek private funding for future initiatives, to conduct research, and to plan seminars and courses. Also incorporated is $12,000 in one-time money to purchase office equipment (desks, chairs, files, etc.) for the new support staff. The budget also provides $2,000 to cover the additional cost of the car leased by the Commission. The car the agency has been leasing from the State motor pool is scheduled for retirement in FY 96-97 and the agency's lease cost will increase (1991 Sunbird).

Provisos passed by the General Assembly allow the Commission to raise additional revenues from private sponsors and from educational seminars and conferences, and to use this revenue to provide additional training/seminars and provide research seed money.

Department of Insurance

The budget appropriates $55,000 to complete acquisition and implementation of new data processing system. The agency received $1,000,000 in non-recurring funds last year to begin purchasing hardware and software to convert its data processing system to an in-house PC based system. Before last year, in-house equipment was obsolete. The Office of Information and Technology Resource Management stated that the Department only needs $220,000 to finish the project. ITRM recommends an IPP loan repaid at $55,000 a year for 4 years.

Department of Labor, Licensing, and Regulation

The Department requested a 2% base reduction ($169,518), which is included in the final version. The agency is able to take this reduction due to (a) realignment of offices due to restructuring and (b) downsizing and merging of administrative, complaint, and investigation functions.

The Capital Reserve Fund bill includes $250,000 for the purchase of new equipment for the Fire Academy. State appropriation and course revenues cover the cost of operating the Academy, but will not cover the cost of equipment. The General Assembly also approved $200,000 in the Capital Reserve Fund bill to purchase PVC pipe for dry hydrant installation. A dry fire hydrant is a length of PVC piping with a hydrant fitting that is installed in a creek, river, lake, or pond for the purpose of fire-fighting where no public water supply is available. In FY 93-94 an amount of $200,000 was granted to the now defunct Governor's Office of Energy Programs. These funds came from the Petroleum Fund (oil overcharge money) and were used to purchase piping for installation of approximately 650 dry hydrants across the state. The remainder of the expenses were covered by in-kind contributions from the county governments, local Soil and Water Conservation districts, and local fire districts. Costs of these hydrants range from $1,000 to $1,800 depending on the amount of site preparation. An additional 1,100 new hydrants are needed to fully equip the state.

The State Energy Office estimates that insurance premiums went down by $9,000,000 in areas where the first groups of dry hydrants were installed.

A proviso instructs the Department to coordinate with the Lowcountry Resource Conservation and Development District to purchase this equipment. This group coordinated the initial dry hydrant project in 1994.

Employment Security Commission

The General Assembly approved $70,000 for training needs related to the SC Occupational Information System. This funding will provide critical training for counselors, teachers, and others to use the SC Occupational Information System to improve career decision making and find jobs. The increase will be used for training services, materials/supplies associated with the workshops, and travel costs to provide the workshops statewide.

This increase will result in an increase in the use of the SC Occupational Information System, improved career guidance delivery in compliance with the SC School-to-Work Transition Act, and a better match between available jobs and the available workforce. The goal is to conduct these workshops in all areas of the state in FY 96-97. The agency receives approximately $850,000 in Federal and other funds for this program. However, these appropriations cover personnel costs and other operating expenses. They do not address the training component. The SCOIS is PC based on-line system designed to help people plan careers and find jobs. It is located in over 550 elementary, middle, high school, technical colleges, post-secondary schools, Vocational Rehabilitation workshops, Job Service offices, vocational centers, libraries, and other sites where citizens seek employment.

Department of Transportation

The General Assembly passed a part II proviso which, effective June 1, 1997, phases in a restoration of one cent of gasoline tax to the Highway Fund. This one cent currently goes to the General Fund. One-half cent is removed on June 1, 1997, resulting in a increase of $848,708 in available Highway Fund revenue in FY 1996-97. The full penny is removed from the General Fund effective July 1, 1997, which will result in an additional $20.4 million annually.

Other provisos included in the DOT section require the Department to begin privatization of its maintenance activities where possible, allow the Department to provide performance bonuses in the same manner as other state agencies, and direct the Department to spend 1/4 of one cent of gas tax revenue on mass transit activities.

Funds for FY 96-97 were appropriated in the following bills:

General Appropriation Bill - H.4600
Part I - Total and General Fund Appropriations -
General Funds - $4,377,462,210 & Total Funds - $11,935,221,964

Part III - FY 94-95 Supplemental Appropriations - $80,584,073

Part IV - New Homestead Funding Exemption - $64,203,298

Part V - FY 95-96 Supplemental Appropriations - $74,697,794

Part VI - Additional FY 95-96 Supplemental Appropriations - $185,103,432
(Part VI also includes proviso on Performance Audit Steering Committee)

Capital Reserve Fund Bill, Joint Resolution - H.4602 - $80,489,858

Surplus Bill H. 4425 - $10,000,000 for State House Renovation

Conference Committee - Agreement 5/30/96 (Spreadsheet: 120K)

Conference Committee Contingent Surplus (Spreadsheet: 10K)

SECTIONS ADDED BY GOVERNOR:

SECTION 1 - Code of Laws
SECTION 2 - Repeal Obsolete Budget Activities
SECTION 3 - Repeal Obsolete Budget Report Dates
SECTION 4 - SC Ed Endowment Fund Renamed as Children's Education Endowment (see Sec.24)
SECTION 5 - Gas Tax Revenue Credited to State Highway Fund-Phase-in
SECTION 6 - DELETED ("C" Funds Allocation Change)
SECTION 7 - DELETED (Highway Patrol Law Enforcement Account) (see Sec. 29, 30 & 42)
SECTION 8 - Manufacturer's Depreciation Allowance Increase/Property Tax Reimbursement/Liquor Permits Fee Revenue Distribution
SECTION 9 - DELETED (Senior Citizens Income Tax Relief)
SECTION 10 - Water Recreational Resource Fund Allocation for Noxious Aquatic Weed
SECTION 11 - DELETED (Victim's Assistance Program Transfers/Battered Spouse & Rape Crisis)

SECTIONS ADDED BY WAYS & MEANS COMMITTEE:

SECTION 12 - Repeal Obsolete Reports to Comptroller General
SECTION 13 - Repeal Statewide Vendor Coding System
SECTION 14 - Repeal Issuance of Duplicate Receipts
SECTION 15 - Repeal Withholding of Appropriations
SECTION 16 - Responsibility for Personal Property
SECTION 17 - County Salary Supplements
SECTION 18 - DELETED (General Assembly Adjournment Date Change)
SECTION 19 - DELETED (Patriot's Point Loan Repayment Extension for Spoleto)
SECTION 20 - Palmetto Fellows Scholarship
SECTION 21 - DELETED (USC Athletic Facility Revenue Bond Act)
SECTION 22 - DELETED (Higher Education Revenue Bond Act)
SECTION 23 - DELETED (Repeal Business-Ed Partnership & Business Ed Subcommittee)
SECTION 24 - Children's Education Endowment Fund/Public School Facilities Assistance
SECTION 25 - Judges & Circuit Solicitors Salary
SECTION 26 - Defense of Indigents
SECTION 27 - Secretary of State Securities Division Transfer to Attorney General (see also Sec.40)
SECTION 28 - Secretary of State Public Charities Division Transfer to Attorney General
SECTION 29 - DELETED (Department of Public Safety Revenues) (see also Sec. 7, 30, 31, & 42)
SECTION 30 - Department of Public Safety FOI Copy Fee (see also Sec. 7, 29, 31, & 42)
SECTION 31 - DPS Release of Motor Vehicle Record Info. (see also Sec. 7, 29, 30, & 42)
SECTION 32 - DELETED (Local Government Tax Caps) (see Sec. 39 & 41)
SECTION 33 - Property Tax Relief Fund - $100,000 & Millage Cap & Distribution

SECTIONS ADDED BY THE HOUSE OF REPRESENTATIVES:

SECTION 34 - DELETED (Single Gender Education)
SECTION 35 - Reorganization Commission & Repeal Various Joint Committees (see also Sec.44)
SECTION 36 - DELETED (Student Teaching Loan Cancellation Procedures)
SECTION 37 - DELETED (Motorcycle Rider Safety Education Program)
SECTION 38 - DELETED (Local School Innovation Fund - Adult Education)
SECTION 39 - DELETED (Local Government Tax and Fee Caps) (see also Sec.41)
SECTION 40 - DELETED (Exclude Transferable C.D.'s from "Security" Definition/Securities Commission) (see also Sec.27)
SECTION 41 - DELETED (Special Purpose, Public Service & School Districts Tax & Fee Caps) (see also Sec. 32 & 39)
SECTION 42 - DELETED (Motor Vehicle Record Information)
SECTION 43 - DELETED (Legislative Audit Council Assist With Zero Base Budgeting)
SECTION 44 - DELETED (Establish Capital Projects Oversight Committee) (see also Sec. 35)
SECTION 45 - DNR Enforcement Officer Requirements

SECTIONS ADDED BY THE SENATE FINANCE COMMITTEE:

SECTION 46 - Pre-Retirement Death Benefit Eligibility
SECTION 47 - Retirement System Beneficiary Changes
SECTION 48 - Retirement System Service Credit Eligibility
SECTION 49 - Retirement System Service Credit for Education Leave
SECTION 50 - General Assembly Retirement Service Credit Eligibility
SECTION 51 - Victim Assistance
SECTION 52 - Transfer of Emotionally Disturbed Children's Services Fund
SECTION 53 - Eligibility for Early Intervention Services/Children with Disabilities
SECTION 54 - Senior Citizens Center
SECTION 55 - Gas Tax Revenue for Mass Transit
SECTION 56 - DELETED (Trucking Assessment & Property Taxes)
SECTION 57 - Deed Recording Fee
SECTION 58 - Beer & Wine 120 Day Temporary Permit
SECTION 59 - Department of Revenue Debt Collections
SECTION 60 - Exemption of Accommodations Tax
SECTION 61 - DELETED (Limitations for Tax Refund Claims to More Than One State)
SECTION 62 - Exempt Motor Vehicle Service Contracts
SECTION 63 - DELETED (Statewide Crime Stoppers Program)
SECTION 64 - Insurance Fraud
SECTION 65 - DELETED (Election Commission Campaign Reports & Ethics Violation Responsibility)
SECTION 66 - Mitigation Trust Fund
SECTION 67 - DELETED (Shriners License Plates)
SECTION 68 - DELETED ("Public Education" Commemorative License Plate)
SECTION 69 - Extended Day Five-Year-Old Kindergarten
SECTION 70 - Evaluation of Public School Principals
SECTION 71 - DELETED (School Crime Reporting Act)
SECTION 72 - Child-Care Programs Classroom Space
SECTION 73 - DELETED (Higher Education Accountability Act)
SECTION 74 - Professor of the Year Awards
SECTION 75 - Admissions Tax Exemption for Presentation of Performing Artists by Colleges & Universities
SECTION 76 - Holiday Schedule for College and University Employees

SECTIONS ADDED BY THE SENATE

SECTION 77 - Medical Examiners Commission
SECTION 78 - DELETED (Paraplegic/Hemiplegic Land Tax Exemption)
SECTION 79 - Qualifications for 4% Assessment Ratio
SECTION 80 - Municipal Court Assessments Reimbursements
SECTION 81 - Residential Group Care Facility - State Health/Dental Plan Eligibility
SECTION 82 - DELETED (Common Carrier Passenger Vehicle Registration & License Fee)
SECTION 83 - DELETED (Education Entrance Exam - Allow 4th Attempt)
SECTION 84 - Greige Mills Machinery & Equipment Tax Exemption
SECTION 85 - DELETED (Sales Tax Exemption for Laundries)
SECTION 86 - Designation of Hospitals as Developmental Centers
SECTION 87 - Prohibit Railroad Track Trespassing
SECTION 88 - Department of Revenue & Taxation References
SECTION 89 - DELETED (Foster Child Tax Exemption)
SECTION 90 - DELETED (ETV - Contract for Private Day Care)
SECTION 91 - DELETED (Mayors Special License Plate)
SECTION 92 - Tolls & Turnpikes
SECTION 93 - DELETED (Property Tax Assessment Under Appeal)
SECTION 94 - DELETED (Referendum on Eliminating Property Tax)
SECTION 95 - DELETED (National Guard Special License Plate Fee Reduction)
SECTION 96 - DELETED (Use of Parks & Recreation Funds for Historic Theaters)
SECTION 97 - DELETED (Probation, Parole & Pardon Services Board Members Compensation Reduction)
SECTION 98 - Annual Leave Credit Computation
SECTION 99 - Department of Revenue Report on Revenue Impact Documents
SECTION 100 - Revise Exemption on Liquor License-Proximity to Certain Entities
SECTION 101 - Legislative Delegation Payments in Lieu of Office Space
SECTION 102 - DELETED (License Cosmetologist to Work in Barber Shops)
SECTION 103 - Infectious Waste Contingency Fund Fee Distribution
SECTION 104 - DELETED (Crime Victims-Incident Report/Restitution)
SECTION 105 - County Council Funding of State Agency Offices

Governor David M. Beasley returned H. 4600, the 1996-97 Appropriations Act, with the following vetoes which were sustained by the General Assembly:

Part IA, Section 17B, B&C-Division of Operations, page 67, line 40- OTHER PERSONAL SERVICE 30,000-- vetoed to comply with balanced budget requirements so as to offset veto of Section 64 in Part II.

Part IB, Section 11, Attorney General's Office, page 407, proviso 11.10-- vetoed because it eliminated a resource directed to support investigation and prosecution of insurance fraud.

Part II, Section 64, page II-65,- Insurance Fraud-- vetoed because it eliminated a resource directed to support investigation and prosecution of insurance fraud.

Part II, Section 79, pages II-73 and II-74,- Qualifications for 4% assessment ratio-- vetoed because it was passed in other, separate legislation.

Part II, Section 84, pages II-76 and II-77,- Griege Mills Machinery and Equipment Tax Exemption-- vetoed because it was passed in other, separate legislation.

Part II, Section 101, pages II-85 and II-86,- County Delagation Payments in Lieu of the Provision of Office Space-- vetoed because the question of local governments providing office space for local legislative delagations is addressed in current law.

Act 272 -- Property Tax Exemption for Surviving Spouse of Law Enforcement Officers
S. 273 -- Senator Lawrence Richter

Amends Code section to allow the surviving spouses of Law Enforcement Officers killed in the line of duty to be exempt from property taxes on their home and one acre of land.

Signed May 6, 1996.

Act 363 -- Repeal Obsolete Code Sections - Dept. of Revenue
S. 571 -- Senator Harvey Peeler

Originally deleted a requirement that a purchaser of an item exempt from state sales tax must sign the invoice. Amended by striking the text of the original bill (which was adopted in the FY 1995-96 Appropriation Act), and adding sections to repeal code sections relating to the Department of Revenue that have been rendered obsolete by subsequent legislation. The bill removes sections in chapters 21, 37, 39, 43, and 49, and also repeals Chapter 41 in its entirety.

Signed May 29, 1996.

Act 232 -- Delinquent Property Tax Sales
S. 699 -- Senator Lawrence Richter

This legislation impacts the sale of non-owner-occupied real estate to collect delinquent property taxes. The act raises from eight percent to twelve percent the rate of interest which the delinquent taxpayer or others must pay to redeem property in the six months prior to the delinquent tax sale. The owner of the property must be notified in writing of any excess from the sale which is due him after delinquent taxes have been paid.

Signed May 20, 1996.

Act 333 -- Surcharges on Rental of Private Motor Vehicles
S. 774 -- Senator John Land

Relates to collection and use of surcharges on the rental of private motor vehicles. The Act provides that the surcharges are a sales tax that belongs to the state which must be placed in a separate account, that the surcharges are not subject to certain creditor liens, and are not considered gross receipts or revenue. The act states that a person or entity may not impose a fee, penalty, or expenses on individuals complying with the surcharge law. The Act also provides an audit exception for rental companies, which states that these companies are not liable for monies paid, relating to surcharges, to an airport or other authorities between June 30, 1993 and the effective date (Companion bill H. 4848).

Signed May 20, 1996.

Act 409 -- Olympic License Plates
S. 846 -- Senator Warren Giese

This Act adds an article to provide for the issuance of South Carolina Special Olympic license plates. The plates cost $50 each in addition to the normal registration fee. The proceeds from the plates will go to the Special Olympics in South Carolina.

Signed June 4, 1996.

Act 253 -- Definition of Vacant Land
S. 996 -- Senator J. Verne Smith

Revises the definition of "vacant land" in code section ), which relates to tax increment financing for redevelopment projects.

Signed April 1, 1996.

Act 282 -- Property Tax Exemption for Certain Housing
S. 1072 -- Senator John Matthews

Amends Code Section (B)(11), which will allow certain non-profit corporations that provide housing for the elderly, handicapped or families of low to moderate incomes to become exempt from property taxes.

Became law without the Governor's signature on May 7, 1996.

Act 312 -- Dispute Resolution for Insurance Claims
S. 1082 -- Senator John Drummond

This legislation authorizes the Budget and Control Board to establish administrative procedures to resolve disputes concerning coverage and payment of benefits for state employee insurance programs. The procedures would constitute the exclusive remedy for these claims, subject only to appellate judicial review as authorized by the Administrative Procedures Act.

Signed May 6, 1996.

Act 463 -- Senate Education Committee
S. 1117 -- Public School Facilities Assistance Act

This legislation provides money for public school facilities from fees collected for Barnwell radioactive waste disposal. Funds will be allocated annually to school districts based on a formula consisting of 35% weighted pupil units, 35% using the Education Finance Act formula, 15% need and 15% effort. Need is determined by comparing each school's enrollment to its building size and age. Effort is based on the average of the past capital expenditures used to meet the districts' building needs. Allocations to the Department of Juvenile Justice, Wil Lou Gray Opportunity School, John De La Howe, and the School for the Deaf and Blind will be based on 100% weighted pupil units.

Signed July 12, 1996.

Act 314 -- Delinquent Payment Collection Procedures
S. 1148 -- Senator John Drummond

This legislation establishes procedures for the collection of premium payments from agencies and political subdivisions covered by the various state insurance programs. The act would authorize the Budget and Control Board, upon appropriate notification, to terminate coverage if an invoice is not paid within sixty days.

The act also allows the State Treasurer, upon certification of the Budget and Control Board of a delinquency of payments, to withhold from the next distribution of revenue the amount owed by the agency or political subdivision for non-payment of insurance premiums.

Signed May 6, 1996.

Act 422 -- Purple Heart License Plate
H. 3273 -- Representative Ronald Townsend

H. 3273 reduces the fee for issuance and renewal of the special license plate issued to recipients of the Purple Heart and makes the plate permanent.

Signed June 18, 1996.

Act 346 -- Sales Tax Exemption for Recycling Machinery
H. 3710 -- Representative William Keyserling

Extends a sales tax exemption currently allowed for manufacturing, processing, compounding, mining, and quarrying machinery to cover machinery used for recycling. The legislation phases in the exemption over two years starting July 1, 1997. The estimated reduction in sales tax revenue is $1,250,000 upon full implementation.

Signed May 29, 1996.

Act 230 -- State Health and Dental Plan Coverage
H. 4037 -- Representative William Boan

This legislation would allow former members of the governing body of a county or municipality who served at least twelve years to continue coverage in the State Health and Dental Plans upon payment of the entire premium costs. The provision applies only to counties or municipalities which participated in the State Health and Dental Plans at the time of the former member's service

Became law without the Governor's signature on February 13, 1996.

Act 302 -- Higher Education Revenue Bond Act
H. 4313 -- Representative Ronald Fulmer

This bill amends Title 59, Code of Laws of South Carolina, 1976 by permitting any four year public institution to issue revenue bonds. An institution is permitted to cross pledge revenues for the payment of principle and interest on any revenue bond. The bond issues are only limited in size to the extent that the revenues will be sufficient to provide the required payback. There is not a cap on the amount that can be issued. State funds and funds required for institution bonds are not involved. The funds required for debt retirement come from the fees charged for the use of a specific facility (for example, housing bonds are paid back with dormitory fees charged to the students). This proposed legislation would permit the institutions to issue general revenue bonds, with Budget and Control Board approval, under one umbrella and not for a specific facility type. The Budget and Control Board, the Joint Bond Review Committee and the Commission on Higher Education will still be required to review and approve the individual projects.

The bill also amends Act 518 of 1980 which permits the University of South Carolina to issue revenue bonds for revenue producing athletic facilities. The University of South Carolina is permitted to use athletic facility revenue bonds for not only construction, but for renovations, acquisitions, equipment purchases and other costs related to bond issuances for any athletic facility. In addition, the language clarifies bonds as being tax exempt and permits any athletic funds to be deposited into the debt service reserve funds. It also permits varsity home games to be played outside the Stadium. The cap of $20 million did not change. The Budget and Control Board, the Joint Bond Review Committee and the Commission on Higher Education are still required to review and approve the individual projects.

Became law without the Governor's signature on May 7, 1996.

Act 231 -- Economic Development Industrial Cluster Act
H. 4397 -- Representative David Wilkins

This legislation is an expansion of the Enterprise Zone Act of 1995, which entitles qualifying companies (certain manufacturing, tourism, processing, warehousing, distribution, research and development operations or corporate office headquarters) located in Enterprise Zones to several new tax incentives. An "Enterprise Zone" is a designation which is determined annually by the State Budget and Control Board, based upon whether or not the area meets at least one of certain specific statutory criteria. Examples of these qualifying criteria include, but are not limited to: census tracts in which either the median household income is eighty percent or less of the state average, or in which at least twenty percent of households are below poverty level; census tracts with at least one hundred manufacturing jobs, at least fifty percent of which are textile and apparel jobs; an area located in a federal military base or installation which was closed, designated to be closed, or in a federal facility in which the permanent employment was reduced by three thousand or more jobs after December 1, 1990.

The Economic Development Industrial Cluster Act is intended to build upon the 1995 legislation by offering incentives which are designed to induce the creation of "industrial clusters" in South Carolina. An industrial cluster is a concentration of an economic sector in a certain geographic area. These clusters can produce new growth, expanding our economy through business interaction. The synergies and by-products of the business interactions will reinforce and strengthen the competitive position of each of the cluster's constituent businesses.

The Economic Development Industrial Cluster Act provides economic development incentives in areas not specified in the Enterprise Zone Act. These incentives include, but are not limited to: allowing income tax credits to be applied against insurance premium tax liabilities; providing for the designation of additional enterprise zones, amending sections of the code relating to the targeted job tax credit, so as to extend the tax credit carry-forward period from ten to fifteen years; allowing the qualification of a percentage of transferred employees as new employees in the case of an eligible tire manufacturer; amending sections of the code relating to the retention of a portion of admissions license taxes for major tourism or recreation projects; allowing a higher depreciation rate for rubber products and allowing a lower depreciation limit for qualifying tire manufacturers.

Signed February 12, 1996

Act 479 -- Joint Resolution, Commission for Minority Affairs
H. 4402 -- Representative Gilda Cobb-Hunter

This Joint Resolution authorizes the Commission to receive funds from public and private sources for research, forums, training, and institutes and allows these funds to be retained by the agency and carried forward into FY 96-97 and expended for the same purposes.

Signed April 1, 1996.

Act 239 -- Tobacco Taxes
H. 4478 -- Representative William Boan

Taxes were levied based on a complex schedule of tobacco products, which included the following: 1) Little cigars - two cents for eight cigars, 2) Certain cigars - $11 per thousand, 3) More expensive cigars - $20 per thousand, 4) Cigarettes - 3 1/2 mills per cigarette, 5) Snuff and chewing tobacco - 5% of manufacturer's price, 6) Smoking tobacco - 36% of manufacturer's price.

This Act changes that schedule to 5% of manufacturer's price for all tobacco products except cigarettes, which remains at 3 1/2 mills per cigarette. Also, if taxes are filed and paid in a timely manner, the distributor may deduct 3 1/2 percent of the amount due, instead of 2% as stated in the original bill.

Signed February 28, 1996.

Act 473 -- Investment of State Retirement Funds
H. 4518 -- Representative Terry Haskins

This joint resolution authorizes a voter referendum at the next general election for the purpose of amending the state constitution to allow the funds of the various state retirement systems to be invested in equity securities. The voters would also be asked to approve the establishment of a Retirement Investment Panel and to establish basic criteria to be used for the selection of equity security investments.

Signature of Governor not required.

Act 449 -- Bingo
H. 4557 -- Representative Herbert Kirsh

This Act provides the revenue intended originally for charitable organizations. It will also provide better control over the entire bingo operations including the promoters. This legislation differs from existing legislation in several ways. Instead of a head tax or gross proceeds tax, the tax will be paid up front with the purchase of bingo cards. The percent to be given back in prizes changed. Manufacturers and distributors will now be licensed. Bingo winnings are subject to individual income tax in the bill. All current recipients of bingo tax will not suffer any loss.

Became law without the Governor's signature on June 20, 1996.

Act 339 -- Bingo: Non-profit Definition
H. 4676 -- Representative Herbert Kirsh

This Act defines `nonprofit organization' as an entity which is organized and operated exclusively for charitable, religious, or fraternal purposes. This helps insure that only a true nonprofit can receive proceeds from Bingo games.

Signed May 20, 1996.

Act 353 -- Business Development Corporation
H. 4681 -- Representative Larry Koon

This Act makes three changes to current state law: 1) The South Carolina Business Development Corporation (BDC) is not subject to any corporation license tax or fee imposed by Chapter 20 of Title 12. This clarifies in law what has been done in practice that the BDC has not paid corporation license taxes or fees. 2) The Business Development Corporation can borrow from "other lending sources" in addition to Business Development Corporations' members and the Small Business Administration. Prior to this bill, the BDC could only borrow from either members of the Business Development Corporation or the Small Business Administration. 3) Finally, it allows the BDC to borrow at less than one/quarter more than the prime. In the past, the BDC could not borrow at less than 1/4th of the prime rate.

Signed May 29, 1996.

Act 462 -- South Carolina Rural Development Act of 1996
H. 4706 -- Representative David Wilkins

This bill in intended to encourage economic development in South Carolina by increasing tax breaks and providing other incentives to new and expanding South Carolina businesses, especially those businesses which create new jobs in rural and less developed areas.

Counties may now negotiate an assessment rate as low as four percent for fee-in-lieu-of- tax agreements with major investment and job creation projects which provide a minimum investment and a minimum number of additional jobs. Previously, the minimum-allowed assessment rate was six percent. The bill also increases the number of years that counties may continue to negotiate these fee-in-lieu-of-taxes agreements with a particular business.

H. 4706 also increase job tax credits (for income tax purposes) allowed to qualifying businesses. If a company adds a set minimum number of jobs, a jobs tax credit will be allowed. These breaks can be extended to some retail stores and restaurants in the state's least developed counties. The expanded jobs tax credits will be distributed by dividing counties into four tiers. Previously (under the Enterprise Zone Act) there were three tiers. Now, a county's tier designation is determined through consideration of a combination of its unemployment rate and its per capita income. Additionally, provisions are included which allow movement of qualifying counties within the tiered system. Tier 1 is Least Developed Counties and the tax credit per new job is $4,500; Tier 2 is Under-developed Counties with a tax credit of $3,500 per new job; Tier 3 is Moderately Developed Counties with a tax credit of $2,500 per new job; and Tier 4 is Developed Counties with a tax credit of $1,500 per new job. An additional $1,000 credit is available for jobs created in a multi-county industrial park. However, the use of the partner's credit (the county with the largest credit) is eliminated. The maximum jobs tax credit that can be claimed in a tax year for each qualifying employee $5,500.

The bill also establishes the State Rural Infrastructure Fund, which will be administered by the Advisory Coordinating Council for Economic Development for the purposes of providing assistance to local governments. The entire state is established as an Enterprise Zone, dividing into the same four tiers as for the Jobs Tax Credit. As in the past, qualifying corporations are allowed to collect job development fees (for a maximum of fifteen years) if the business creates at least ten new, full-time jobs at the qualifying South Carolina facility. Businesses located in the more developed tiers would be required to pay more into the fund, and those businesses located in the less developed tiers would be allowed to retain a higher percentage of the fee. For example, businesses in Tier 1 ("Least Developed" counties) would be allowed to keep 100% of the job development fee and would not be required to contribute any portion to the Rural Infrastructure Fund, but businesses located in Tier IV ("Developed" counties) would be required to contribute 45% of their job development fees to the fund. Grants from the fund will be available to benefit only counties designated as "least developed" or "under-developed." However, 25% of the funds annually available in excess of $5 million must be set aside for grants to go to certain areas in "moderately developed" and "developed" counties. The rural infrastructure funds may be used only for training costs and facilities; improvements to regionally-planned public and private water and sewer systems; improvements to both public and private electricity, natural gas, and telecommunication systems; and transportation facilities, including highway, rail, water, and air.

Signed July 2, 1996

Act 403 -- Alternative for Valuing Homeowners' Association Property
H. 4774 -- Representative Ronald Fulmer

This adds Code Section that provides an optional method of valuing Homeowners' Association Property for tax purposes. Code was amended to define Homeowners' Association Property. It also defines how the owners of the real property or their agents must make a written application to the assessor of the county where the property is located to qualify for this provision.

Signed June 4, 1996.

Act 461 -- Property Tax Apportionment - Trucks/Commercial Vehicles
H. 4796 -- Representative Ronald Fulmer

The bill provides for the apportionment of property taxes on: (1) Commercial motor vehicles registered in the state and (2) Vehicles operated by companies owning or leasing real operating property. The apportionment formula is the number of miles operated in this state as a percentage of total miles operated. The bill lowers the assessment ratio for these vehicles from 10.5% to 9.5%, which establishes equity with other transportation modes such as airlines, private car lines, and railroads. The bill changes appraised value from Truck Blue Book value to a calculation which allows for a 10% straight-line depreciation multiplier for up to 90% of the cost. The bill would require DPS to assess taxes due based on an average statewide millage (estimate=255) as applicable millage. The Department of Public Safety will be responsible for the administration of the property tax on these vehicles. The Department will serve as sole administrator on matters of valuation, apportionment, equalization, collection, and appeal. Creates a one-time combination permanent license tag and fee-in-lieu of property tax of $87 on commercial semi-trailers. This fee is in lieu of property taxes and registration requirements. $12 of this fee will be retained by the Dept. of Public Safety. The remaining $75 will be distributed to the counties.

The act also contains language from H. 4825, which cleans up gas tax provisions passed in 1995, and the section is effective retroactive to May 1, 1996. The provisions passed last year contained numerous cross reference errors, and did not provide a means for licensing entities to pay tax on alternative fuels. The bill creates a miscellaneous license for payment of gas tax on alternative fuels. The act also makes clarifications regarding suspension/revocation of licenses for failure to comply with deferred payment regulations, provides that backup tax applies to alternative fuels, and allows a 30 day notice period before revocation of a license. The act also requires that local governments become licensed as miscellaneous licensees.

The act contains language requested by the Department of Public Safety to correct Act 459 of 1996 regarding truck weights, which was drawn incorrectly with an erroneous weight table.

The act also contains language allowing the Department of Transportation to commit up to its maximum annual debt service limit to a newly-created State Highway Construction Debt Service Fund, which is to be used solely for paying principal and interest on bonds issued for construction or maintenance of state highways. The language is permissive, and allows the Department flexibility in the establishment of the fund.

Signed July 3, 1996.

Act 456 -- Revenue Procedures Act Amendments
H. 4833 -- Representative Al Robinson, Jr.

Last year, the General Assembly passed the Revenue Procedures Act. The Act provided procedures for the collection and appeals of taxes owed. This bill clarifies several provisions passed last year. It allows the Department of Revenue to provide additional time for filing returns and paying taxes for certain reasons. Specifically, this bill: 1) Updates the language to refer to the current interest rate for gasoline tax. 2) Makes the statute of limitations on gasoline tax consistent with other areas of tax. 3) Allows Department of Revenue to waive up to 30 days of interest on overdue taxes, versus the current 15 days. 4) Makes the language related to the statute of limitations, estimated payments, and withholding consistent with the Federal Government. 5) Clarifies the provisions related to unclaimed property. 6) Extends time limitations related to protest periods and filing periods. 7) Extends the due date for holidays and weekends for all taxes the Department of Revenue administers. 8) Changes the language of this section to refer to claims for refunds rather than protest claims.

Signed July 3, 1996.

Act 431 -- Taxation Provisions
H. 4834 -- Representative Al Robinson, Jr.

This bill contains language originally included in H. 4834 and H. 4835. These bills were "clean-up" bills requested by the Department of Revenue to clarify provisions relating to collection and payment of taxes.

Under the act, the Department may charge a $15 penalty for a bank's refusal to pay on an electronic payment. This is an expansion of the law which currently provides the penalty for bad checks. The Department may authorize alternative methods of filing paper documents required with electronic fund transfer or electronic payment of taxes. The law authorizes taxpayers to keep microfilm records instead of original documents as long as the microfilm is retained for the time required by current law. The act further revises bingo definitions and various bingo provisions.

The act also allows the Department to authorize taxpayers to sign returns by alternative means, including electronically. Under this act, an innocent spouse will not be held liable for any tax, penalty, or interest, regardless of the size of the understatement or the amount of the spouse's income. South Carolina adopted the innocent spouse provision of the Internal Revenue Code years earlier, and this legislation removes all amounts for which a spouse might be liable. The act also provides that returns filed with the Department of Revenue under the International Fuel Tax Agreement are governed by IFTA penalties for late filing or payment. This is a clarification of existing law.

The act makes changes regarding qualifications for the owner-occupied assessment ratio. To qualify for the 4% owner-occupied assessment ratio, the owner must have owned and resided at the property during the tax year and remain there when the application is filed. Application must be made before January 16. Only one residence qualifies for the ratio. A member of the household (spouse and dependent children) may not hold the ratio on another property. The burden of proof of eligibility lies with the owner, and the act sets out requirements.

Additionally, the act provides that twenty percent of the cost of any machinery or equipment placed in a greige mill qualifies as pollution control property and is exempt from property tax. prior law limited the exemption to just property used for a dual purpose. This codifies the Department's administrative policy. The Department may also authorize county auditors to keep records of sales and other transfers of real property in a manner other than manual paper handling (i.e. electronically).

Under this law, the property tax exemption for vehicles owned by Medal of Honor recipients and POWs may be allowed even if the vehicles do not have the special license plates issued by DMV. Also, the property tax exemption for boats and motors is clarified, and the act exempts trailers used to haul watercraft.

This act provides that counties must request for reimbursement from the Comptroller's Office for the homestead exemption after January 1 for those accounts which are effective before January 15. Accounts which accrue after that date must be submitted on the next year's reimbursement request.

The fair market value used for personal property taxes on boats and airplanes will now depreciate each year. The value must not exceed 95% of the value for the prior year, as was enacted last year for motor vehicles.

This act also states that reassessment must be completed by the counties every five years, with valuation being completed by December 31 of the fourth year. If there is a change in property value of $1000 or more, notices must be sent to the property owner by February 1 of the implementation year. Another provision says that the valuation may be appealed to the county assessor at any time before the taxes are due on January 15.

Under this act, the value of the standing timber on real property must not be considered when determining the amount of rollback taxes to be paid when agricultural property is used for some other purpose.

Another provision of this act says that delinquent taxes must be paid before the date of the delinquent sale; payment on the date of the sale is no longer allowed.

This act provides that a county's forfeited land commission isn't required to enter a bid on contaminated property. The forfeited land commission must write the delinquent tax collector before ordering a tax sale to inform the collector of the contaminated land.

When property has been sold at a delinquent tax sale, any excess between the taxes that were due and the amount the property was sold for are due to the person who used to own the property. They must be notified by certified mail, restricted delivery (i.e. to the addressee only) and the cost of the mailing must come from the excess. Before the defaulting taxpayer's property can be sold, they must be warned of the end of the redemption period by certified mail, restricted delivery. When redeeming property sold at a delinquent tax sale, the defaulting taxpayer must pay the applicable rate of interest. This rate is 8% for the first six months then increases to 12% in the second six months. Prior law set the rate at 8%.

Another provision in the act says that when contractors purchase property for use in a construction contract for the United States government, the sale is no longer considered a retail sale. Property purchased by someone with a written contract with the federal government is exempt from sales tax when the property will transfer to the government at the conclusion of the contract or is used to make something for the federal government.

The act also states that for leased items to qualify for the $300 sales tax cap, the lease must be in writing. Prior law required a lease, but didn't stipulate that it be in writing.

The act expanded the list of supplies used by diabetics (under the direction of a physician) that are exempt from sales tax.

The act also provides that the solid waste collected on tires, batteries, oil, and appliances isn't counted in the gross sale and isn't subject to the sales tax.

Signed June 19, 1996.

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Last Updated: September 21, 2001 at 9:19 AM