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

TO DESIGNATE SECTION 5 OF ACT 115 OF 2007 AS SECTION 12-6-515, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDUCTION IN THE SOUTH CAROLINA INDIVIDUAL INCOME TAX LIABILITY OF INDIVIDUALS BY SUBJECTING THE BOTTOM OF THE 2.5 PERCENT STATE INDIVIDUAL INCOME RATE TO A TAX RATE OF ZERO, SO AS TO PROVIDE FURTHER RATE REDUCTIONS FOR MARRIED TAXPAYERS BY REDUCING THE THREE PERCENT RATE TO TWO PERCENT OVER FOUR YEARS AND TO DEFINE "MARRIED TAXPAYER" CONSISTENTLY WITH THE DEFINITION FOR MARRIAGE PROVIDED IN THE  CONSTITUTION OF THIS STATE.

A.      Section 5, Act 115 of 2007 is designated Section 12-6-515 and added in Article 5, Chapter 6, Title 12 of the 1976 Code.

B.      Section 12-6-515 of the 1976 Code, as added by subsection A of this section, is amended to read:

     "Section 12-6-515.      (A)      For taxable years beginning after 2006, the rate of tax imposed pursuant to Section 12-6-510(A) on the lowest bracket of South Carolina taxable income is reduced from 2.5 percent to zero percent, and the Department of Revenue shall adjust amounts due in tax tables prescribed by the department.
     (B)      (1)      Notwithstanding the provisions of subsection (A) of this section, the rate of tax imposed pursuant to Section 12-6-510(A) on the current three percent  bracket of married individuals filing a joint South Carolina income tax return is reduced according to the following schedule:

               Taxable Year                        Applicable Rate
               2008                              2.9 percent
               2009                              2.7 percent
               2010                              2.4 percent
               after 2010                        2 percent.

           (2)      For purposes of this subsection, a married taxpayer is a taxpayer who:
                 (a)      files a joint federal income tax return for the applicable taxable year; and
                 (b)      is married in a lawful domestic union as provided pursuant to Section 15, Article XVII of the Constitution of this State.
           (3)      The Department of Revenue, in conformity with this subsection, shall adjust amounts due in tax tables prescribed by the department."

C.      This section takes effect upon approval of this act by the Governor.

TO AMEND THE 1976 CODE BY ADDING SECTION 12-36-2647 SO AS TO PROVIDE THAT THE SALES, USE, AND CASUAL EXCISE TAX REVENUES IN A FISCAL YEAR FROM THE SALE, USE, OR TITLING OF A VEHICLE REQUIRED TO BE REGISTERED AND LICENSED BY THE SOUTH CAROLINA DEPARTMENT OF MOTOR VEHICLES MUST BE CREDITED TO THE STATE NON-FEDERAL AID HIGHWAY FUND, TO PHASE IN THIS DISTRIBUTION, TO PROVIDE FOR THE USE OF THESE REVENUES INCLUDING TRANSFERS TO THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK, AND TO "HOLD HARMLESS" THE EDUCATION IMPROVEMENT ACT (EIA) FUND FOR REVENUES NOT CREDITED TO IT PURSUANT TO THE PROVISIONS OF SECTION 12-36-2647 AS ADDED BY THIS SECTION; TO AMEND SECTION 12-28-2920, RELATING TO THE CONSTRUCTION OF TOLL ROADS, SO AS TO DEFINE "QUALIFIED TOLL PROJECT" AND PROVIDE THAT THE TOLLS FROM SUCH A PROJECT MAY BE FOR ITS ACQUISITION, CONSTRUCTION, EQUIPPING, IMPROVEMENT, FINANCING, REFINANCING, OPERATION, AND MAINTENANCE AND PROVIDE WHEN TOLL CHARGES CEASE; TO AMEND SECTION 57-3-200, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF TRANSPORTATION TO ENTER INTO AGREEMENTS FOR ROAD PROJECTS, SO AS TO PROVIDE THE AUTHORITY OF THE DEPARTMENT WITH RESPECT TO AGREEMENTS FOR A QUALIFIED TOLL PROJECT, AND TO PROVIDE FOR A STUDY BY THE DEPARTMENT OF TRANSPORTATION ON THE INSTALLATION OF AUTOMATED TOLL BOOTHS ON THE CROSS ISLAND PARKWAY IN BEAUFORT COUNTY IN ORDER TO LOWER TOLL CHARGES.

A.      The General Assembly finds that:

     (1)      Before a motor vehicle may be licensed and registered by the South Carolina Department of Motor Vehicles for the privilege of using the public highways of this State, that department either collects or confirms the collection of any applicable sales, use, and casual excise taxes due on the vehicle;
     (2)      Without the required registration and licensing it is unlawful for a motor vehicle to use the public highways of this State; and
     (3)      The revenue of the sales, use, and casual excise tax required to be paid before a motor vehicle may be registered and licensed in this State is included within the "sources of revenue" that may be pledged to secure highway bonds pursuant to Section 13(6)(a), Article X of the Constitution of this State.

B.      Article 25, Chapter 36, Title 12 of the 1976 Code is amended by adding:

     "Section 12-36-2647.      (A)      Notwithstanding the provisions of Section 59-21-1010, an amount as provided in subsection (B) of this section of sales, use, and casual excise tax revenues derived from the sale, use, or titling of a vehicle required to be licensed and registered by the South Carolina Department of Motor Vehicles, otherwise required to be credited as provided pursuant to Section 59-21-1010, instead must be credited to the State Non-Federal Aid Highway Fund established pursuant to Section 57-11-20.  Revenues credited to the State Non-Federal Aid Highway Fund pursuant to this section must be used exclusively for highway, road, and bridge maintenance.
     (B)      In Fiscal Year 2008-2009, an amount equal to one million dollars of the revenues specified in subsection (A) of this section must be credited to the State Non-Federal Aid Highway Fund.  In each succeeding fiscal year, an additional thirty million dollars must be added to the cumulative total amount credited as provided pursuant to this subsection in the preceding fiscal year, until and after which all of the specified revenues must be so credited.  For fiscal years beginning after June 30, 2009, an amount equal to ten percent of the revenue credited pursuant to this subsection in a fiscal year must be credited and apportioned as 'C' funds are credited and apportioned pursuant to Section 12-28-2740.  All of the additional 'C' fund revenues apportioned pursuant to this subsection must be expended solely for rural road maintenance and construction and this additional allocation is not subject to the requirement for twenty-five percent of 'C' funds to be expended on the state highway system as provided pursuant to Section 12-28-2740(C).  The balance of the revenue credited in a fiscal year pursuant to this subsection must be credited to the State Non-Federal Aid Highway Fund.
     (C)      There is transferred from income tax revenues credited to the general fund of the State in each fiscal year to the Education Improvement Fund an amount sufficient to offset sales tax revenues not credited to the EIA fund as a result of the reduction of sales tax revenues provided pursuant to this section.
     (D)      In Fiscal Year 2008-2009, there must be transferred from non-state tax revenues in the State Highway Fund to the State Highway Account of the South Carolina Transportation Infrastructure Bank an amount equal to one million dollars.  In each succeeding fiscal year, one-half of the amount required to be transferred to the State Non-Federal Aid Highway Fund pursuant to subsection (B) in each fiscal year must be similarly transferred."

C.      Section 12-28-2920 of the 1976 Code is amended to read:

     "Section 12-28-2920.      (A)      The department shall review projects for the possibility of constructing toll roads to defray the cost of these projects pursuant to the authority granted the department in Section 57-5-1330.  No project may be funded by means of imposing a toll on the users of the project unless in conjunction with federal funds authorized for use on toll roads it is determined to be substantially feasible by the department.  The funds derived from tolls must be:
           (1)      credited to the State Highway Fund or retained and applied by the entity or entities developing, or, in the case of a Qualified Toll Project, operating the toll road pursuant to an agreement authorized under Section 57-3-200 for the purpose of funding:
                       (a)      the cost of construction, financing, operation, and maintenance of the toll project; or
                       (b)      in the case of a Qualified Toll Project, acquisition, cost of construction, equipping, improvement, financing, refinancing, operation, and maintenance of the toll project; or
           (2)      used to service bonded indebtedness for highway transportation purposes incurred pursuant to paragraph 9, Section 13, Article X of the South Carolina Constitution.
     (B)      Upon repayment of the cost of construction, financing, toll charges shall cease, or in the case of a Qualified Toll Project upon the repayment of the cost of acquisition, construction, equipping, improvement, financing, refinancing, operation, maintenance, and satisfaction of the obligations of all of the parties to an agreement authorized under Section 57-3-200, toll charges on such qualified toll projects shall cease.
     (C)      For purposes of this section and Section 57-3-200, a 'Qualified Toll Project' is a toll project involving an agreement between the department and another entity or entities on which tolls were being collected before January 1, 2008.  The department has the authority to assign, amend, and extend the terms of a Qualified Toll Project agreement.  However, an amendment or extension does not create a pecuniary obligation on the part of the department, the State of South Carolina, its agencies or subdivisions, or its taxpayers to pay any debt associated with the Qualified Toll Project."

D.      Section 57-3-200 of the 1976 Code is amended to read:

     "Section 57-3-200.      (A)      From the funds appropriated to the Department of Transportation and from any other sources which may be available to the department, the Department of Transportation may expend such funds as it deems necessary to enter into partnership agreements with political subdivisions including authorized transportation authorities, and private entities to finance, by tolls and other financing methods,:
           (1)      the cost of acquiring, constructing, equipping, maintaining, and operating highways, roads, streets and bridges in this State.;
           (2)      in the case of a Qualified Toll Project, as defined in Section 12-28-2920, the cost of acquiring, constructing, equipping, improving, maintaining, financing, refinancing, and operating highways, roads, streets, and bridges in this State.
     (B)      The department shall establish the initial toll to be charged to the traveling public for the use of the transportation facility and any revisions to those tolls after providing public notice and a hearing.  However, in the case of a Qualified Toll Project, the department, after setting the initial toll rate or rates, may delegate to the political subdivision, transportation authority, or private entity the power to revise the toll for inflation in an amount not to exceed the increase in the Consumer Price Index.
     (C)      The provisions of this section must not be construed to confer upon the Department of Transportation or political subdivisions any power to finance by toll or other means the acquisition, construction, equipping, maintenance or operation which the Department of Transportation or other political subdivisions do not possess under other provisions of this code."

E.      The Department of Transportation shall conduct a feasibility study regarding the Cross Island Parkway on US Highway 278 in Beaufort County on the question of whether or not the toll booths thereon should be automated in order to lower the toll charge. This feasibility study shall be completed no later than January 1, 2009, and the department's reports and recommendations shall be provided to the Governor and to the presiding officer of each house of the General Assembly.

F.      This section takes effect July 1, 2008.

TO AMEND SECTION 2-75-5 OF THE 1976 CODE, RELATING TO LEGISLATIVE FINDINGS CONCERNING RESEARCH CENTERS OF ECONOMIC EXCELLENCE, SO AS TO REVISE REFERENCES AS TO SOURCES OF FUNDS FOR ENDOWED PROFESSORSHIPS; TO AMEND SECTION 2-75-10, RELATING TO CREATION OF THE RESEARCH CENTERS OF EXCELLENCE REVIEW BOARD, SO AS TO REQUIRE ANNUAL REPORTING TO THE GENERAL ASSEMBLY AS WELL AS THE BUDGET AND CONTROL BOARD; TO AMEND SECTION 2-75-30, RELATING TO CENTERS OF EXCELLENCE MATCHING ENDOWMENT, SO AS TO DELETE THE AGGREGATE FUNDING AMOUNT LIMIT AND TO PROVIDE THAT ALL STATE SCHOLARSHIPS BE FUNDED BEFORE FUNDING THE ENDOWMENT; TO AMEND SECTION 2-75-50, RELATING TO APPLICATION REQUIREMENTS, SO AS TO REVISE THE FUNDING DOCUMENTATION AN APPLICATION MUST CONTAIN AND TO ENCOURAGE PARTNERSHIP OF ELIGIBLE INSTITUTIONS WITH OTHER STATE COLLEGES AND UNIVERSITIES; TO AMEND SECTION 2-75-90, AS AMENDED, RELATING TO MEETING MATCHING REQUIREMENT WITH PRIVATE OR FEDERAL FUNDS, SO AS TO DELETE OBSOLETE LANGUAGE; BY ADDING SECTION 2-75-100 SO AS TO ALLOW SENIOR RESEARCH UNIVERSITIES TO UTILIZE A PORTION OF NON-STATE MATCHING FUNDS TO PAY FOR INITIAL OPERATING COSTS; AND BY ADDING SECTION 2-75-110 SO AS TO ALLOW THESE UNIVERSITIES TO ACCEPT AND APPLY CASH EQUIVALENT AND IN-KIND DONATIONS FROM NON-STATE SOURCES.

A.      Section 2-75-5 of the 1976 Code is amended to read:

     "Section 2-75-5.      (A)      This chapter is known and may be cited as the 'South Carolina Research Centers of Economic Excellence Act'.
     (B)      The General Assembly finds that:
           (1)      it is in the public interest to create incentives for the senior research universities of South Carolina consisting of Clemson University, the Medical University of South Carolina, and the University of South Carolina to raise capital from the private sector to fund endowments for professorships in research areas targeted to create well-paying jobs and enhanced economic opportunities for the people of South Carolina;
           (2)      these endowed professorships should be used to recruit and maintain leading scientists and engineers at the senior research universities of South Carolina for the purposes of developing and leveraging the research capabilities of the universities for the creation of well-paying jobs and enhanced economic opportunities in knowledge-based industries for all South Carolinians;
           (3)      in communities across the United States in which better paying jobs and enhanced economic development in knowledge-based industries has flourished, the local or state government has created incentives and made a long-term commitment to public and private funding for a significant number of endowments for professorships in targeted knowledge-based industries;
           (4)      the South Carolina Education Lottery provides a source of funding and an incentive for the senior research universities to raise, in dollar-for-dollar matching amounts, sums from private non-state sources sufficient to create endowed professorships;
           (5)      these endowed professorships should be awarded to the senior research universities through a competitive application process, provided that the competitive process must encourage the senior research universities to submit cooperative applications with one another as well as in cooperation with other institutions of higher education;  and
           (6)      these endowed professorships, funded equally from the South Carolina Education Lottery and from other private non-state sources, provide a foundation for the creation of centers of economic excellence."

B.      Section 2-75-10 of the 1976 Code is amended to read:

     "Section 2-75-10.      There is created the Research Centers of Excellence Review Board.  The board shall consist of nine members.  Of the nine members, three must be appointed by the Governor, three must be appointed by the President Pro Tempore of the Senate, and three must be appointed by the Speaker of the House of Representatives.  The terms of members are three years and members are eligible to be appointed for no more than two additional terms.  Of the members initially appointed by the Governor, the President Pro Tempore, and the Speaker of the House, one shall be appointed for a term of one year, one for a term of two years, and one for a term of three years, the initial term of each member to be designated by the Governor, President Pro Tempore, and Speaker of the House when making the appointments.  The Governor, the President Pro Tempore, and the Speaker of the House shall appoint persons with substantial experience in business, law, accounting, technology, manufacturing, engineering, or other professions and experience which provide an understanding of the purposes of this chapter.  The board shall be responsible for providing annually to the Commission on Higher Education a schedule by which applications for funding are received and awarded on a competitive basis, the awarding of matching funds as provided in Section 2-75-60, and for oversight and operation of the fund created by Section 2-75-30.  The review board must provide an annual report to the General Assembly as well as the Budget and Control Board, which shall include an audit performed by an independent auditor."

C.      Section 2-75-30 of the 1976 Code is amended to read:

     "Section 2-75-30.      There is created the Centers of Excellence Matching Endowment.  The endowment must be funded annually by appropriations from the South Carolina Education Lottery Account in an aggregate amount not to exceed $200,000,000 by 2010, except that endowment appropriations for the current fiscal year may not be funded until all state-supported scholarships are fully funded.  The fund must be managed by the State Treasurer, subject to awards from the endowment as provided in this chapter.  Interest earnings of the endowment must remain in the fund."

D.      Section 2-75-50 of the 1976 Code is amended to read:

     "Section 2-75-50.      (A)      An application for an award from the endowment shall:
           (1)      provide to the board documentation of private matching funds, on hand, in an amount equal to the amount for which application is made;
           (2)      provide to the board documentation that all matching funds have been committed and raised exclusively from sources other than South Carolina tax dollars, and that the funds have been committed and raised after January 1, 2002;
           (3)      be in an amount of not less than two million dollars and not more than five million dollars;
           (4)      document that the application has significant potential to provide for enhanced economic development for the citizens of South Carolina in a specified knowledge-based industry or field of commerce; and
           (5)      provide specific partnering activities with other institutions, businesses, or the community.
     (B)      Eligible research universities are strongly encouraged to partner with other South Carolina colleges and universities to develop proposals that will enhance the economic competitiveness of our State, and to enhance science and engineering through collaborations in related disciplines."

E.      Section 2-75-90 of the 1976 Code, as added by Act 187 of 2004, is amended to read:

     "Section 2-75-90.      (A)      Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50, To meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided in subsection (B) that are derived from private or federal government sources, excluding state appropriations to the institution, tuition, or fees.  Subject to the restrictions in subsection (B), only federal dollars received after July 1, 2003, may be used to meet the endowed professorships matching requirement.
     (B)      The matching funds in subsection (A) may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other 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 Centers of Excellence Review Board."

F.      Chapter 75, Title 2 of the 1976 Code is amended by adding:

     "Section 2-75-100.      (A)      The board may, at its discretion, permit the senior research universities to utilize a portion of the nonstate matching funds of any single award to pay for initial operating costs including, but not limited to, infrastructure improvement, purchase of equipment, and payment of salaries for junior faculty, researchers, technicians, and other support staff directly associated with the establishment of the professorship's research efforts and the creation of the center of economic excellence which the professorship serves.  The portion established by the board must apply equally to all of the senior research universities' centers of economic excellence and endowed professorships created under this act.  The portion established by the board may be modified by the board in order to facilitate program success.
     (B)      The full amount of every state award, with the exception of programmatic support proposals, must be placed into and remain in endowment.  Should a center of economic excellence be dissolved, withdrawn, or otherwise terminated, the entirety of the state award which has been drawn by the institution must be returned to the Centers of Excellence Matching Endowment."

G.      Chapter 75, Title 2 of the 1976 Code is amended by adding:

     "Section 2-75-110.      In addition to accepting and applying non-state funds, as stipulated in Section 2-75-90(A), to meet the matching requirement of each state award, a senior research university may accept and apply cash equivalent and in-kind donations from non-state sources.  Such donations must directly impact and promote the research of the endowed professorship and the center of economic excellence which the professorship serves.  Such donations may include, but are not limited to, donated or rent-discounted laboratory, and research facility space; buildings, including sale-lease back; equipment; furnishings; and infrastructure upgrades.  The value of each cash equivalent or in-kind donations must be determined using standard accounting methods and a cost share accounting policy established by the board.  The total value of cash equivalent and in-kind donations applicable per award may not exceed the portion of non-state matching funds available for non-endowment use established by the board.  Cash equivalent and in-kind donations may only be applied if received by a senior research university after July 1, 2002."

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

TO AMEND THE 1976 CODE BY ADDING SECTION 11-11-415 SO AS TO PROVIDE THAT THE LIMIT ON GENERAL FUND APPROPRIATIONS FOR A FISCAL YEAR IS THE TOTAL AMOUNT OF THE GENERAL FUND REVENUE ESTIMATE AS OF FEBRUARY FIFTEENTH FOR FISCAL YEAR 2007-2008, INCREASED ANNUALLY AND CUMULATIVELY BY THE LESSER OF SIX PERCENT OR A PERCENTAGE DETERMINED BY POPULATION INCREASE AND INCREASES IN THE CONSUMER PRICE INDEX, TO PROVIDE FOR THE LIMITATION TO BE SUSPENDED FOR A FISCAL YEAR FOR A SPECIFIC AMOUNT UPON A SPECIAL VOTE OF THE GENERAL ASSEMBLY AND TO DEFINE THIS SPECIAL VOTE, TO ESTABLISH THE SPENDING LIMITATION RESERVE FUND, TO WHICH ALL SURPLUS GENERAL FUND REVENUES MUST BE CREDITED, AND TO PROVIDE FOR THE PRIORITY USES OF THE REVENUES OF THIS FUND, TO PROVIDE FOR THE APPROPRIATION OF FUND REVENUES AFTER THESE PRIORITIES ARE MET, AND TO REQUIRE THAT APPROPRIATION OF REVENUES OF THIS FUND MUST BE BY JOINT RESOLUTION ORIGINATING IN THE HOUSE OF REPRESENTATIVES.

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

     "Section 11-11-415.      (A)(1)      In addition to all other applicable constitutional and statutory limitations on general fund appropriations, notwithstanding any other provisions of law, and only to the extent that the limit on general fund appropriations for a fiscal year imposed by this subsection is less than the annual limit imposed pursuant to Section 7(c) of the Constitution of this State and Section 11-11-410, total general fund appropriations for the fiscal year may not exceed the lesser of:
                       (a)      one hundred six percent of the adjusted base-year estimate; or
                       (b)      the adjusted base-year estimate increased by a percentage equal to the state's growth in population applied ratably over  the period of the decennial United States census assuming a rate of increase equal to the rate in the most recently completed United States census for which population figures are available over the next preceding census and a percentage equal to the increase, if any, in the consumer price index in the most recently ended federal fiscal year, as determined by the Bureau of Labor Statistics of the United States Department of Labor.
           (2)      As used in this subsection, the 'adjusted base-year estimate' is the general fund revenue estimate made by the Board of Economic Advisors on February 15, 2008, for Fiscal Year 2008-2009, including both recurring and nonrecurring revenues from whatever source derived as adjusted annually and cumulatively as provided in item (1) of this subsection.
           (3)      The Office of Research and Statistics of the State Budget and Control Board, upon approval by the State Economist and in consultation with the director of the board's Office of State Budget, shall calculate and provide the appropriate percentages for population and consumer price index growth to the Ways and Means Committee of the House of Representatives and the Senate Finance Committee no later than November tenth of each year.
           (4)      Before the Governor may submit the proposed budget for these fiscal years, the proposal must include the certificate of the Director of the Office of State Budget that the proposed budget conforms to the limitation imposed by this subsection.  The annual general appropriations bill may not be given third reading in the House of Representatives and Senate unless a similar certificate is received by the presiding officer in each house from the Director of the Office of State Budget before the bill is given third reading.
     (B)      (1)      Notwithstanding the provisions of subsection (A) of this section, the General Assembly may declare a financial emergency and suspend the spending limitation imposed pursuant to subsection (A) for any one fiscal year for a specific amount by a special vote as provided in this item by enactment of legislation which relates only to that matter.  The state general fund appropriations for the fiscal year following the suspension must be determined as if the suspension had not occurred and, for purposes of determining subsequent limits, must be presumed to have been the maximum limit which could have been authorized if the limitation imposed pursuant to subsection (A) had not been suspended.
           (2)      The special vote referred to in this item means an affirmative recorded roll-call vote in each branch of the General Assembly by two-thirds of the members present and voting but not less than three-fifths of the total membership in each branch.
     (C)      (1)      There is created in the State Treasury a fund separate and distinct from the general fund of the State, the Capital Reserve Fund, and all other funds entitled the Spending Limit Reserve Fund.  Notwithstanding any other provision of law providing for the use of surplus general fund revenue, all general fund revenues accumulated in a fiscal year in excess of the limit on appropriations provided pursuant to subsection (A) of this section must be credited to this fund.  Revenues credited to this fund in a fiscal year may be appropriated by the General Assembly in its regular session in the year following the close of the applicable fiscal year.  Revenues in this fund may be appropriated only for the purposes provided in item (2) of this subsection.
           (2)      (a)      If the balance in the general reserve fund established pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 is less than the required balance, there must be appropriated to it all amounts in the Spending Limit Reserve Fund up to the total necessary to replenish the general reserve fund.  This amount does not replace or supplant the minimum replenishment amount otherwise required to be made to the general reserve fund.  To the extent these concurrent replenishments of the general reserve fund exceed the amount necessary for its full funding, the general reserve fund as provided in Article III, Section 36 of the Constitution of this State, that fund is deemed to require an annual minimum balance equal to this increased amount not to exceed a total from all sources of a balance equal to four percent of general fund revenue in the latest completed fiscal year.  The additional balance in the general reserve fund provided pursuant to this section is for all purposes and uses a part of the general reserve fund.
                       (b)      After the appropriation of amounts required pursuant to subitem (a) of this item, any remaining balance may be appropriated for or used to offset revenue reductions for:
                                   (i)      temporary tax reductions;
                                   (ii)      infrastructure improvements; and for purposes of this item, infrastructure includes, but is not limited to, fixed transportation facilities, to include highway, rail, water, and air, and the basic facilities, services, and installations needed for the functioning of government, to include water, sewer, and public sector communications;
                                   (iii)      school buildings;
                                   (iv)      school buses; and
                                   (v)      expenses incurred by this State as a result of natural or other disasters declared by the President of the United States.
                       (c)      The total state share of a capital project funding for which is derived in whole or in part from the Spending Limit Reserve Fund, must be appropriated from the Spending Limit Reserve Fund in one installment.
                       (d)      Appropriations from the Spending Limit Reserve Fund must be made by means of a joint resolution originating in the House of Representatives."

B.      This section takes effect upon approval of this act by the Governor, and first applies for general fund appropriations made and surplus general revenues accruing for Fiscal Year 2009-2010.

     All acts or parts of acts inconsistent with any of the provisions of Parts IA or IB of this act are suspended for Fiscal Year 2008-2009.
     All Acts or parts of Acts inconsistent with any of the provisions of Part II of this Act are hereby repealed.
     Except as otherwise specifically provided, this act takes effect immediately upon its approval by the Governor.

Tuesday, June 23, 2009 at 11:03 A.M. Tuesday, May 20, 2008 at 9:23 A.M.