...
Building Stronger Counties for Tomorrow

(2004 Past Issues)
Issue 17-2004,
May 7,
2004
Issue 18-2004, May 14, 2004
Issue 19-2004, May 21, 2004
Issue 20-2004, May 28, 2004
The Senate works in mysterious ways. The Senate calendar
(agenda) had grown to 85 pages of bill titles by Thursday,
there were bills in interrupted debate, adjourned debate and
there was a filibuster being waged on the Governor’s income
tax cut plan which was added to a bill being returned to the
Senate for concurrence or nonconcurrence by the House. In
short, it looked like absolute gridlock to just about every
observer.
Thursday afternoon and evening, there was a deal
announced to give tort reform and the environmental crimes
bills a second reading and put them off to the side unless a
final consensus was reached. The telecommunications bill in
interrupted debate status was stripped of less germane
amendments awaiting action and it was set for a vote
beginning at 1:00 next Tuesday. Votes to invoke cloture to
end the filibuster on the Governor’s income tax plan were
repeatedly unsuccessful and any further consideration has
been put on hold. This leaves the hog bill first up when
they dispose of the telecommunications bill on Tuesday. This
also makes it relatively easy to reach the 15% assessed
valuation cap bill and several other bills which would be
detrimental to local government’s ability to respond to
citizen requests for services.
It appears from these actions and conversations with
members of the Senate that the groups on the other side of
several pieces of legislation SCAC opposes are making not
only more contacts, but more effective contacts with
legislators. The last three days of this legislative session
could see the passage of several major bills which could
significantly impact the county’s ability to respond to
citizen demands for services and other needs. Please make
those last follow up phone calls and visits. |
| 1. |
Hog Bill -
H. 3082 |
|
As reported in past issues, pre-emption of local government
authority is contained in a proposed amendment to H.3082.
Currently the amendment is limited to restricting local
requirements on poultry and livestock. It does not exempt
zoning nor does it grandfather existing ordinances. Hogs are
not in the amendment and the deletion of hogs from the
equation has helped the proponents gain strength in the
Senate. However, we are informed that there is an amendment
not yet on the Senate desk which would apply the
restrictions to all business activities. Whether it will be
offered or not we cannot predict. There will almost
certainly be an effort to amend any bill sent back to the
House when H. 3082 is returned to them. The members of the
Senate have been under intense pressure from the farming
industry. Staff was in a meeting with a representative from
Gold Kist who stated that ordinances in Clarendon and Lee
would hinder development and could cost 1200 jobs. This type
of argument is very difficult to refute. Our response is
that counties need the flexibility to react to citizen
concerns and that a state agency cannot draft a regulation
governing siting and location that reflects the topography,
density and growth patterns of each county. This is the type
of thing that "Home Rule" was designed to accomplish. The
Chinese had a saying, "The mountains are high and the
emperor is far away" to justify the need for local
government. In South Carolina, people should not have to
petition an agency in Columbia to address local concerns.
County Councils are elected, responsible, accessible and
are attuned to the interests of their community. Businesses
too have the right to petition and seek relief from their
county government. You may be getting weary, but contact
your senators and ask them not to invoke cloture (cutting
off debate) and not to support agricultural and industry
sponsored amendments to H. 3082. The fact that one proposal
narrows the scope does not make the precedent of eroding
"Home Rule " more palatable. It also grants another
opportunity for the broader amendments to be added later in
the legislative process. SCAC’s policy opposes preemption of
local regulatory authority. Don’t rely on someone else to
make the contacts and plead your case for you. |
|
2. |
15% 20% Cap on Property Tax Valuation -
H. 3689 |
| |
H. 3689 appears to be the most significant change to the
property tax system which may be debated this year. This is
not a comprehensive approach to tax reform. The bill does
not address the statutory school millage drivers. The end
result of the change would only be to redistribute the
property tax burden. The proposal also works to reverse the
reduction in the motor vehicle assessment ratio.
SCAC staff has worked to broaden the coalition of groups
aware of and working against this proposal. A number of
those groups are quietly working against the bill. Any
commercial or industrial property tax payer would suffer as
a result of the shift in property tax burden to personal
property. Utilities would get no valuation relief and all of
the effect of the increased millage rate. Another group
which would be hit hard is the poorest property owners. The
poor typically own only a car or are more likely to own real
property which does not appreciate more than 15 or 20% in
five years, thereby receiving only the effects of the higher
millage rate.
With the movement on the Senate calendar this past
Thursday, the Senate could reach H. 3689 or it could even
more easily tack it onto any number of other bills on the
calendar. Please let the members of the Senate know the
effect of capping the assessed value of property on all of
the various groups of property tax payers.
See the attached information sheet. |
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3. |
General Assembly Completes Work on Governor’s Vetoes,
Budget Becomes Law |
|
Despite the level of attention generated by the
gubernatorial vetoes this week, none of the vetoes dealt
with matters of interest to the counties as reported in last
week’s Friday Report. Therefore matters which were
reported as being in the conference committee’s report on
the budget will become law. |
|
4. |
Municipal Capital Projects Sales Tax -
S. 813 |
|
The Senate spent a great deal of time on S. 813 this week.
S. 813, as passed by the House contains the contents of H.
3903 to authorize a municipal capital projects sales tax; H.
4765 which is the Governor’s income tax plan; H. 4475 to
address state budget deficits; and H. 4310 to define camper
trailers as passenger vehicles. The Senate proposed to strip
the bill of all but the income tax plan, but the filibuster
has been ended without cutting off debate. However, the bill
will still be in a posture that it could be picked up at any
moment this week. The municipal capital projects sales tax
would allow municipal governing bodies to enact a capital
projects sales tax. The adoption of this legislation would
likely preclude residents in the unincorporated area of a
county from receiving the benefit of a capital project sales
tax, because city residents are unlikely to vote for two
capital project pennies. A municipality within a county
could in effect "close the door" by adopting the municipal
capital project sales tax and garner all the available
revenue for strictly municipal projects |
|
5. |
Other Legislation of Interest |
|
A. Planning Act -
H. 4354. This bill is on the contested Senate
calendar with a minority report. We understand that this
objection will be removed and the bill further amended to
emphasize that it is a statute which encourages planning
interaction, it does not mandate a result. B.
School Bond Sales Tax -
H. 3612. This measure would create a countywide bond
penny for school construction bonds. It is pending second
reading on the contested Senate calendar.
C. School Bond Penny -
H. 5210. H. 5210 originally contained a Richland
County only school bond sales tax. On Thursday, the House
amended the bill with the Senate Finance Committee’s version
of H. 3612, the School Bond Penny bill. H. 5210 will be in
the Senate Tuesday.
D. Vested Rights -
H. 3858. This proposal was given 3rd
reading in the Senate and will before the House Tuesday for
their concurrence or nonconcurrence. The bill still mandates
that there is no vesting of any right until the local
government gives its approval. H. 3858 will require an
amendment to the local land development ordinance if the
county wants to maintain control over the vesting. The bill
was amended to give an additional grace period for a local
government to comply with the educational provisions of last
year’s takings bill.
E. Building Code Adoptions -
S. 897. The House gave third reading to an amended
version of S. 897. The bill provides changes adopted by the
Building Codes Council to the building code do not have to
be readopted in subsequent code cycles.
F. County Veteran Affairs Office Funding -
S. 638. This bill was recalled from the House Ways
and Means Committee and placed on the House calender this
week. The bill states that county veterans affairs offices
must be funded with monies appropriated by the General
Assembly for that purpose and payable directly to the county
treasurer's office by the State Treasurer.
G. Boat Taxes -
H. 4440. As amended by the Senate, H. 4440 allows
county council, with approval of the school district, to
reduce the assessment ratio on boats to as low as 4%. The
amendment also contains tax situs and apportionment language
for boats. H. 4440 is pending third reading in the Senate.
This replaces the mandatory change to 6% and cap on all boat
tax bills at $1500.00 in the House version.
H. Child Support Hearing Notice -
H. 4575. This bill requires clerks of court to
provide a written notice of a child support hearing to the
party owed the support and to put a copy of the notice in
the judge’s file. H. 4575 is pending third reading in the
Senate.
I. Military Bases & Land Use Planning -
H. 4482. This bill is pending third reading in the
Senate. H. 4482 requires local governments to notify
military installations of land use planning changes that may
affect their installations so that military officials may be
given the opportunity to provide their input.
J. Modular Home Appearance Standards -
H. 4735. H. 4735 is pending third reading in the
Senate and must be returned to the House for concurrence or
nonconcurrence in Senate amendments. The bill would make
installation and appearance standards for modular housing
state law. The legislation also grants a sales tax exemption
for modular housing. |
Assessed Valuation Limitation Legislation: H. 3689
● What effect
would these bills have on the millage rate?
The fiscal impact statements accompanying these bills
indicate that it is revenue neutral because it is assumed
that millage rates will be adjusted to raise the same amount
of revenue. How many mills would rates go up?
In a millage rate study of how the existing 15% cap
legislation would affect Charleston County, it was learned
that the millage increases would be as follows:
School district (countywide)
28 mills higher
Countywide millage
(County, Trident Tech & Parks & Rec Comm)
12 mills higher
City of Charleston
17 mills higher
North Charleston
10 mills higher
Mt. Pleasant
5 mills higher
What impact do those millage increases have on the amount of
property taxes paid on a:
$100,000 owner-occupied home in the:
$100,000 commercial property in the:
unincorporated area of the county $160.00 more
unincorporated area of the county $240.00 more
City of Charleston
$228.00 more City
of Charleston
$342.00 more
City of North Charleston
$200.00 more City
of North Charleston
$300.00 more
City of Mt. Pleasant
$180.00 more City
of Mt. Pleasant
$270.00 more
! How many tax bills will be lower and how many
will be higher if either of these bills is adopted?
In the Charleston study, under the existing 15% cap
mechanism, tax bills were examined to determine if that bill
would be higher or lower after the 15% cap were adopted. The
tax bills examined included all real property, boats,
business personal property, and motor vehicles, taking into
account the dropping assessment ratio for motor vehicles.
The results were:
53,000 lower tax bills 5,000 tax bills not
changed 447,000 higher tax bills
Primary residences:
33% would be lower
76% would be higher or the same
Commercial properties:
44% would be lower
56% would be higher or the same
Motor vehicle:
0 would be lower
100% would be higher
Personal property:
0 would be lower
100% would be higher
Many of those with a lower real estate property tax bill
would end up paying more than before after taking motor
vehicle and other personal property tax bills into account.
● For those who do
receive lower tax bills, how long will the relief last if
the state mandated school tax increase formulas are not
addressed?
Neither bill addresses the statutory school millage rate
drivers contained in the EIA and EFA which require
maintenance of per pupil funding levels and adjustment of
those funding levels for the inflation factor. Both bills
restrict the growth of the tax base. Therefore, whatever
millage rate increase is required by the EIA & EFA statutory
requirement will be higher than it currently would be.
Because more than half of every property tax bill is for
schools, that portion of the property tax burden will
continue to grow as a result of state requirements and will
grow at a higher rate than is currently the case. The bottom
line is that for those tax bills which are reduced as a
result of these bills, they will very shortly be higher than
they currently are.
In the Campbell Administration study of the property tax
system, the study found, "What has been described as a
property tax problem is not really that; it is a school
financing crisis. On average, about 55% of every property
tax bill paid by homeowners and business goes to education,
based on statutory formulas that are not fiscally
accountable."
● What is fair - or
constitutional - about the end result of these bills?
The South Carolina Constitution requires that "the
assessment of property shall be equal and uniform" and that
property taxes be levied upon the "fair market value" of the
property being taxed.
How can that constitutional requirement be satisfied when
two essentially identical houses sitting beside one another
could have widely different values based solely upon when
the current owners purchased the home? How can it be fair
when those homeowners get the same package of services from
local government but potentially pay very different property
tax bills?
The existing 15% cap legislation was declared
unconstitutional once already. However, the Supreme Court
vacated that portion of the lower court ruling on grounds
that the constitutional issue did not need to be reached.
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Newly-Introduced
Legislation
|
Note: If you would like copies of any of the bills or if
you would like to offer comments to the SCAC staff, please call us toll-free at
1-800-922-6081 or fax us at 1 (803) 252-0379 or email us. Or, you can
view or download bills by clicking on the bill number.
|
House Bills
None
Senate Bills
None
Ratification of Acts
None
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There are six regularly scheduled legislative days left in
the 2004 session of the General Assembly. Things will only
get stranger, more hectic and harder to follow from here.
There are quite a few big proposals which various groups are
pushing, including a telecommunications deregulation bill,
tort reform, hogs, and several of the Governor’s proposals.
All bills not passed before June 3 will die and must be
refiled and start the legislative process again. Therefore,
the groups trying to get proposals through will be putting
more and more pressure on the General Assembly to favor
their legislation. County officials must continue making
contact with the members of the General Assembly to explain
the impact of the various proposals on county government and
the citizens in the county. |
| 1. |
Hog Bill -
H. 3082 |
|
H. 3082 has now become the vehicle for the "hog" bill.
Debate began on an amendment to restrict local government
authority to impose additional regulations on livestock or
poultry. A point of order challenging the germaneness of the
amendment to H. 3082 was overruled. The weaker initial
offering supercedes local zoning and land use regulation on
poultry and livestock. Senators Leventis, Richardson and
Malloy have pledged that they will talk this to death if at
all possible. We believe that Tuesday, May 25 will be a key
day in the effort to pass this bill.
We have been informed that the stronger version which
would include all business activities has been prepared,
although it has not been put on the Senate desk. In previous
versions, that proposal essentially read that no local
ordinance may impose a more stringent standard on any
activity or industry regulated by the general law of the
state.
Please keep your Senator advised of the potential damage
that this limitation on local government can cause. |
|
2. |
15% 20% Cap on Property Tax Valuation -
H. 3689 |
| |
H. 3689 appears to be the most significant change to the
property tax system which may be debated this year. This is
not a comprehensive approach to tax reform. The bill does
not address the statutory school millage drivers. The end
result of the change would only be to redistribute the
property tax burden. The proposal also works to reverse the
reduction in the motor vehicle assessment ratio.
SCAC staff has worked to broaden the coalition of groups
aware of and working against this proposal. A number of
those groups are quietly working against the bill. Any
commercial or industrial property tax payer would suffer as
a result of the shift in property tax burden to personal
property. Utilities would get no valuation relief and all of
the effect of the increased millage rate. Another group
which would be hit hard is the poorest property owners. The
poor typically own only a car or are more likely to own real
property which does not appreciate more than 15 or 20% in
five years, thereby receiving only the effects of the higher
millage rate. Attached is an op-ed piece from the Sun News
written by a member of a taxpayers group opposing H. 3689. |
|
|
|
3. |
Budget Sent to Governor |
|
The budget conference committee completed work on the budget
on Tuesday morning and the bill has been sent to the
Governor. The Governor has five days to return the budget
bill with his vetoes. The Local Government Fund was fully
funded according to the statutory formula in the budget.
Provisos of Interest:
Proviso 1.81 - Level of Financial Effort. This
proviso would have suspended the local effort requirements
under the EFA for the fiscal year. Proviso 1.81 was not
adopted.
Proviso 1A.54 - EIA Local Effort Requirement. This
proviso would have suspended for this fiscal year the EIA
local effort requirement. Proviso 1A.54 was not adopted.
Proviso 30.15 - Fee on State Case Management System.
This proviso authorizes the Judicial Department to charge a
fee for technology support services provided to users of the
State Case Management System. The proviso does not place a
limit on the amount of the fee to be charged. This proviso
was adopted.
Proviso 32.9 - Attorney Supervision. This proviso
would have stated that the Attorney General shall contract
with, supervise, and direct: (1) any attorney utilized by
the Insurance Reserve Fund to represent the State, its
agencies, or political subdivisions, as well as any employee
of the same; and (2) any attorney utilized as bond counsel
by the State or its agencies. This proviso was rejected.
Proviso 35.7 - County Contributions for Indigent Defense.
This proviso states that no county may reduce its
contribution to the local defender corporation below the
amount provided for such organization in the prior fiscal
year. This proviso was adopted. Moral of the story: don’t
appropriate any more than is absolutely required and which
could be appropriated in later years without problem.
Proviso 59.11 - Penalty Waiver. The Comptroller
General is authorized to suspend the ten percent withholding
requirement imposed on aid to subdivisions monies for a
county’s failure to submit required financial data in the
Annual County Financial Report. This proviso was adopted.
Proviso 60.5 - Assessments and Filing Fees. This
proviso directs the State Treasurer to identify any
jurisdiction it believes is not transmitting assessments and
filing fees in a timely manner and to follow up with the
county treasurer. This proviso was adopted.
Proviso 72.92 - Assessment Audits. This proviso
allows the state auditor to audit court assessment, fine and
surcharge revenues. If a jurisdiction is found to have
remitted an improper amount of fines and assessments to the
state and the State Auditor finds that the county treasurer
is at fault, then the county’s Aid to Subdivisions money
will be withheld in the amount of the shortfall. If a clerk
of court or magistrate is found to be at fault, then the
clerk or magistrate has 90 days to remit the portion owed,
but there is no aid to subdivisions withholding provision.
The proviso gives the State Treasurer and Court
Administration $10,000 for the training of court officials
in the handling of the assessment, fine, and surcharge
revenue. This proviso was adopted.
Proviso 72.97 - Reimbursement for Hiring Correctional
Officers. This proviso states that the provisions of
§26-3-405 (sic, should probably be §23-6-405), which require
the reimbursement for mandatory training of a government
employee hired by another governmental entity within two
years, also apply to correctional officers and juvenile
correctional officers. This proviso was adopted.
Proviso 72.100 - Fee Increases in Magistrates Courts.
This proviso adds a $25 assessment on all summons and
complaints filed in magistrates court. Additionally, it adds
a $10 assessment on all other civil filings in magistrates
court other than a filing for a restraining order. All
revenues received from these additional assessments are
directed to the state general fund. The proviso is estimated
to increase state general fund revenue by $2 million. This
proviso was adopted.
Proviso 72.110 - Reassessment Postponement. This
proviso states that the governing body of a county postponed
reassessment pursuant to Act 69 of 2003, may by ordinance
postpone the implementation for one additional property tax
year. This was included in the ratified budget.
Proviso 73.13 - Circuit and Family Court Filing Fee.
The filing fee in circuit court and family court is
increased by $50. All of the revenue goes to the judicial
department and criminal justice agencies. Typically, a
percentage of the filing fee goes to the county. This
proviso was adopted. |
|
4. |
Municipal Capital Projects Sales Tax -
S. 813 |
|
The House gave third reading to S. 813 this week. The
original bill’s contents have been adopted in another bill
and is awaiting the Governor’s signature. S. 813 now
contains the contents of H. 3903 to authorize a municipal
capital projects sales tax; H. 4765 which is the Governor’s
income tax plan; H. 4475 to address state budget deficits;
and H. 4310 to define camper trailers as passenger vehicles.
There is talk that the bill will be stripped of all but the
Governor’s income tax plan and passed.
The municipal capital projects sales tax would allow
municipal governing bodies to enact a capital projects sales
tax. The adoption of this legislation would likely preclude
residents in the unincorporated area of a county from
receiving the benefit of a capital project sales tax,
because city residents are unlikely to vote for two capital
project pennies. A municipality within a county could in
effect "close the door" by adopting the municipal capital
project sales tax and garner all the available revenue for
strictly municipal projects. Now is the time to contact
senators to let them know the effects of another bond penny
sales tax. |
|
5. |
Other Legislation of Interest |
|
A. Planning Act -
H. 4354. This bill is on the contested Senate
calendar with a minority report. We understand that this
objection will be removed and the bill further amended to
emphasize that it is a statute which encourages planning
interaction, it does not mandate a result. B. Tattoo
Parlors -
S. 104. The House and Senate adopted the conference
committee report to legalize tattoo parlors. The final
version of S. 104 deleted the explicit guarantee that local
zoning requirements could be more stringent than the bill’s
siting requirements. It was assumed that this language was
unnecessary. S. 104 is enrolled for ratification.
C. Building Code Adoptions -
S. 897. The House LCI committee gave a favorable
report to an amended version of S. 897. The bill provides
changes adopted by the Building Codes Council to the
building code do not have to be readopted in subsequent code
cycles.
D. Vested Rights -
H. 3858. This proposal was given 2nd
reading in the Senate. The bill still mandates that there is
no vesting of any right until the local government gives its
approval. H. 3858 will require an amendment to the local
land development ordinance if the county wants to maintain
control over the vesting. The bill was amended to give an
additional grace period for a local government to comply
with the educational provisions of last year’s takings bill.
E. Isolated Wetlands -
H. 4934. This bill was reported out of the Senate
Agriculture Committee. It had been the subject of several
meetings and amendments to include reducing the size parcel
not requiring wetland mitigation to one acre. The
environmental coalition is opposed and the bill appears to
be in trouble. It has a minority report attached to it.
F. Historic Property Tax Incentive -
S. 277. The House gave third reading to this
amendment to the Section 4-9-195 historic property special
valuation program and it was enrolled for ratification.
G. Boat Taxes -
H. 4440. Senate Finance Committee recommended
amending H. 4440 to allow county council, with approval of
the school district, to reduce the assessment ratio on boats
to as low as 4%. The amendment also contains tax situs and
apportionment language for boats. H. 4440 was amended and
given second reading by the full Senate. This replaces the
mandatory change to 6% and cap on all boat tax bills at
$1500.00 in the House version.
H. School Bond Sales Tax -
H. 3612. This measure would create a countywide bond
penny for school construction bonds. It is pending second
reading on the contested Senate calendar. |
|
6. |
NACo Steering Committee Nominations |
|
Do you want a voice in creating the national legislative
policies of the National Association of Counties? Then
consider filling out a NACo nomination form to be appointed
to one of their steering committees. The nomination process
for membership on NACo policy steering committees for
2004-2005 is underway. As a NACo steering committee member,
you are responsible for debating and creating national
policies and priorities affecting counties and serve as
NACo’s front line in their grassroots efforts. Committees
meet at the NACo legislative and annual conferences and one
other time during the year. You will be responsible for your
own travel.
Please contact Kathy Williams (kathy@scac.state.sc.us) at
the SCAC Offices if you would like to receive a nomination
form. Completed forms must be received by SCAC no later than
Friday, June 18. The nominations will be processed by
SCAC and forwarded to NACo. NACo President-Elect Angelo Kyle
will be making his appointments immediately after the NACo
Annual Conference in July. Appointment letters will be
mailed in September. |
|
Newly-Introduced
Legislation
|
Note: If you would like copies of any of the bills or if
you would like to offer comments to the SCAC staff, please call us toll-free at
1-800-922-6081 or fax us at 1 (803) 252-0379 or email us. Or, you can
view or download bills by clicking on the bill number.
|
House Bills
None
Senate Bills
S. 1249 - Gives county prosecutors the discretion
to refer a person to a pretrial intervention program or a
similar counseling program approved by the solicitor’s
office.
S. 1252 - Provides an alternate procedure to conduct
a special election to fill a vacancy when the election falls
after the first Thursday in June.
Ratification of Acts
The following bills have been passed by both chambers
and are now before the Governor for his signature or veto.
(R.317),
S. 417 - Deletes the requirement that applications
for absentee ballots contain a person’s social security
number.
(R.319),
S. 658 - Provides that municipal judge terms must be
for not less than 2 and no more than 4 years.
(R.320),
S. 763 - Prohibits a person’s social security number
contained on a voter registration application from being
made public.
(R.322),
S. 1148 - Provides that when a person’s auto
insurance lapses or is terminated their driving privileges
are suspended.
(R.326),
H. 3762 - Provides that a trial judge may waive his
right to receive notification of the pending release of
certain inmates on work release.
(R.327),
H. 4272 - Adds parking garages and beach access and
renourishment projects to the ballot question relating to
the purposes for which the proceeds of local sales taxes may
be used.
(R.333),
H. 4925 - General appropriations bill.
(R.334),
H. 4963 - Provides various changes relating to the
retirement system for judges and solicitors.
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|
Rabbit season has indeed opened. H. 3082 is just the first
effort to transform other legislation into the Hog Bill.
There were credible rumors that efforts to transform at
least one other bill into the Hog Bill were made. In several
House committees this week, the members took advantage of
the House rule which allows a previously passed piece of
legislation to be tacked onto any Senate bill in the exact
form it passed the House.The difference between
legislation passing or dying in these last three weeks of
the session is whether the amendment version of the bill
which is stalled is objected to by a senator who was spoken
to by folks from home. The other key is which bills are
placed in the limited special order slots on the Senate
calendar |
| 1. |
Hog Bill -
H. 3555 and
H. 3082 |
|
An amendment has been crafted to attach the restrictions on
local government from the hog bill, on H. 3082. H. 3082 is a
bill dealing with legislative oversight of regulations
promulgated by state agencies. The amendment, which has
not been made public yet, seeks to restrict local authority
from issuing any permit which imposes a more
restrictive or burdensome requirement than a state statute.
While the general tone of the amendment talks about
agriculture, the actual force and effect impacts all local
permitting activities ranging from building permits to
permitting of businesses. The proposed amendment does allow
local governments to pass greater restrictions on hog farms
but this is subject to change in conference committee. This
bill is no longer solely an agriculture issue. It has been
taken over by the State Chamber of Commerce. The farmer is
now just along for the ride. Several senators who have
previously stated their opposition to H. 3555, have now said
they would not oppose this new version of the bill - which
is actually broader and more damaging than the House passed
Hog bill!
We have to hold out for nine more legislative days.
Please ask your Senator not to adopt the proposed Chamber
amendment to H. 3082. It is not just about farming, it is
about the ability of a local governing body to guide the
growth and well being of its community consistent with the
general laws of the state and in accordance with the wishes
of the citizens.
ACTION REQUEST: We have tried to avoid crying wolf but
now is crunch time. Please call us and let us know where
your Senator stands on this issue. Next week will be
critical. |
|
2. |
15% 20% Cap on Property Tax Valuation -
H. 3689 |
| |
H. 3689 is currently on the contested Senate calendar
pending second reading. The only way it can be considered at
this late date is to set it for Special Order or be amended
into some other bill which further along in the process.
However, the rumor is that this is very likely to be set for
special order next week.
ACTION REQUEST: Everyone needs to contact their senators
and ask that they not set H. 3689 for special order. Please
let us know what feedback you receive from your contacts
with the members of the Senate. |
|
|
|
3. |
Budget Conference Committee Begins Work |
|
The Senate completed their work on the budget late Friday
night last week. Most of the debate hinged on whether the
funds were available to assuage deep cuts in agencies and
state education spending while paying off the state’s $150
million deficit. Yesterday, the BEA certified that the state
had an additional $253 million to spend for next fiscal
year, which seems to have toned down much of the debate over
this year’s budget. Last week it was reported that the
Senate adopted a proviso which places an advisory referendum
on the ballot for this year’s general election regarding
replacing property taxes with a sales tax. The Senate later
deleted that proviso. The Local Government Fund is fully
funded in the Senate version of the budget.
When the House considered the Senate amendments to the
budget, two new provisos of interest to counties were added.
Proviso 32.__ - Attorney Supervision. The Attorney
General shall contract with, supervise, and direct: (1) any
attorney utilized by the Insurance Reserve Fund to represent
the State, its agencies, or political subdivisions, as well
as any employee of the same; and (2) any attorney utilized
as bond counsel by the State or its agencies.
Proviso59.__ - Penalty Waiver. The Comptroller
General is authorized to suspend the ten percent withholding
requirement imposed on aid to subdivisions monies for a
county’s failure to submit required financial data in the
Annual County Financial Report.
The budget conference committee can only address the
budget amounts or provisos which do not differ between the
House and Senate version. The exception is when they obtain
a two-thirds vote in each chamber to get "free conference"
powers - a very unlikely event. The budget conferees met
Thursday afternoon and Friday and state that they intend to
finish their work by Tuesday. The conference committee
members are:
Sens. Hugh Leatherman, Tom Alexander and Linda Short
Reps. Bobby Harrell, Dan Cooper, and Bill Clyburn
Status of other provisos of interest:
Proviso 30.15 - Fee on State Case Management System:
This proviso authorizes the Judicial Department to charge a
fee for technology support services provided to users of the
State Case Management System. The proviso does not place a
limit on the amount of the fee to be charged. This proviso
was adopted in both versions of the budget.
Proviso 35.7 - County Contributions for Indigent
Defense: This proviso states that no county may reduce
its contribution to the local defender corporation below the
amount provided for such organization in the prior fiscal
year. This proviso was adopted in both versions of the
budget.
Proviso 60.5 - Assessments and Filing Fees: This
proviso directs the State Treasurer to identify any
jurisdiction it believes is not transmitting assessments and
filing fees in a timely manner and to follow up with the
county treasurer to determine why the appropriate amounts
have not been remitted. This proviso was adopted in both
versions of the budget.
Proviso 73.13 - Circuit and Family Court Filing Fee:
The filing fee in circuit court and family court is
increased by $50. All of the revenue goes to the Judicial
Department and criminal justice agencies. Typically, a
percentage of the filing fee goes to the county. This
proviso was adopted in both versions of the budget.
72.92 - Assessment Audits: This proviso allows the
State Auditor to audit court assessment, fine and surcharge
revenues. If a jurisdiction is found to have remitted an
improper amount of fines and assessments to the state and
the State Auditor finds that the county treasurer is at
fault, then the county’s Aid to Subdivisions money will be
withheld in the amount of the shortfall. If a clerk of court
or magistrate is found to be at fault, then the clerk or
magistrate has 90 days to remit the portion owed, but there
is no aid to subdivisions withholding provision. The Senate
amended this proviso to authorize the use of $10,000 for the
training of court officials in the handling of the
assessment, fine, and surcharge revenue.
72.100 - Fee Increases in Magistrates Courts: This
proviso adds a $25 assessment on all summons and complaints
filed in Magistrates Court. Additionally it adds a $10
assessment on all other civil filings in Magistrates Court
other than a filing for a restraining order. All revenues
received from these additional assessments are directed to
the General Fund. The proviso is estimated to increase
General Fund revenue by $2 million. This proviso is in the
Senate version of the budget. |
|
4. |
Municipal Projects Sales Tax Bobtailed
Added to
S. 813 Under House Rules |
|
The House Ways & Means Committee took up S. 813 this week
and loaded it down with the contents of four other bills
previously passed by the House but not acted upon by the
Senate. Originally, the bill added beach renourishment
projects and parking garages to the list of projects which
the existing capital projects sales tax could be used to
finance. That provision was ratified in another bill last
week and is pending the Governor’s signature. When that was
pointed out at the committee meeting, it was stated that the
reason the bill was before the committee was to add other
bills under the House rules.
The committee then added the contents of H. 3903 to
authorize a municipal capital projects sales tax; H. 4765
which is the Governor’s income tax reduction plan; H. 4475
which is the legislation to address state budget deficits;
and H. 4310 to define camper trailers as passenger vehicles
to allow them the benefit of the assessment ratio reduction. |
|
5. |
Vested Rights -
H. 3858 |
|
A Senate LCI subcommittee took up the vested rights bill
this week. The bill, as amended by the subcommittee, would
require every city and county to amend their local land
development ordinances adopted pursuant to the planning act,
to provide a two year vested right for a site specific
development plan and a process for a land owner for an
extension. The ordinance amendment would have to be adopted
prior to July 1, 2005, or a statutory vested right provision
would serve as a default provision. The amended bill appears
to comply with the SCAC legislative policy position. Another
amendment adopted by the subcommittee would delay for one
year, the deadline for local land use planning officials and
employees to obtain approved orientation and continuing
education courses. This education work was required as part
of the takings legislation adopted last year.
|
|
6. |
Other Legislation of Interest |
|
A. No Golf Course Left Behind Act -
H. 5027. The House took up H. 5027 and again
adjourned debate until Wednesday, May 26. The formula for
valuing golf courses contained in H. 5027 (or S. 917) is not
recognized by any professional appraisal group, used by any
other state, or one which takes into account the key to real
estate value - location. The votes were very close on this
bill (50-48) and it could very easily come back up again in
another proposal. Until a workable proposal can be agreed
upon - continue to contact the members of the House and
Senate to explain just how poor a proposal H. 5027 & S. 917
really are.
B. Litter Penalties -
H. 4675. The Senate Judiciary committee gave a
favorable report to an amended version of H.4675. The bill
would authorize an additional monetary penalty in lieu of a
litter gathering sentence. The money paid must be equal to
$5 per hour of litter gathering. The bill was amended to
provide that the money collected may be used for
litter pick up supervision instead of the House must
language. H. 4675 has been sent to the Senate to be placed
on the Senate calender.
C. Building Code Adoptions -
S. 897. A House LCI subcommittee gave a favorable
report to an amended version of S. 897. The bill provides
changes adopted by the Building Codes Council to the
building code do not have to be readopted in subsequent code
cycles. The bill has been sent to the full House LCI.
D. Electronic Transactions Act -
H. 4720. The Senate Judiciary committee gave a
favorable report to an amended version of H. 4720. The bill
enacts the Uniform Electronic Transactions Act. The act
governs electronic data and transactions with governmental
entities. H. 4720 has been sent to the Senate.
E. Absentee Ballot SSN -
S. 417. This legislation deletes the requirement
that an absentee ballot application contain the applicant’s
social security number. The House Judiciary Committee
reported the bill out favorably this week and it will be
before the House for third reading on Tuesday.
F. Historic Property Tax Incentive -
S. 277. The House Ways & Means Committee gave a
favorable report to this amendment to the Section 4-9-195
historic property special valuation program. There were no
amendments. |
|
Newly-Introduced
Legislation
|
Note: If you would like copies of any of the bills or if
you would like to offer comments to the SCAC staff, please call us toll-free at
1-800-922-6081 or fax us at 1 (803) 252-0379 or email us. Or, you can
view or download bills by clicking on the bill number.
|
House Bills
None
Senate Bills
None
Ratification of Acts
The following bills have been passed by both chambers
and are now before the Governor for his signature or veto.
(R.296),
S. 769 - Gives property tax exemptions to
firefighters and law enforcement officers disabled in the
line of duty, as well as their spouses and the spouses of
disabled veterans.
(R.299),
S. 973 - Provides a property tax exemption for
operating millage levied in a county for alternative
schools, career and technology centers, and county boards of
education.
(R.300),
S. 1075 - Enacts the SC Textiles Communities
Revitalization Act.
(R.305),
H. 3460 - Provides juror exemption for the primary
caretaker of a person 65 or older or a severely
disabled person who cannot care for himself.
(R.307),
H. 3594 - Provides that all felons or persons
convicted of a crime punishable by 5 years or more must
provide a DNA sample.
|
|
From now until the end of the legislative session is a time
referred to as "rabbit season." Bills which did not cross
over to the second chamber in time to make the May 1
deadline or are stalled on the contested Senate calendar get
a second, third, fourth ..... life as amendments to other
bills which may have little to do with the amendment. These
amendments come without warning and they are buried in long
documents for which there is little time to read or ask
questions. This is also the second year of the two year
session - which means that bill sponsors have to start over
again next year if their bill does not pass - thereby
creating pressure for legislation to be put in amendments on
numerous different bills. There is also additional pressure
created by election year with numerous members having
primary election or general election opposition.The only
defense to "rabbits" are conversations with your House and
Senate delegation members well in advance of the action.
Please review your Friday Report and make the time to talk
with your House members and Senators on legislation which
affects county government to prevent "rabbit season" turning
into open season on local governments and the citizens they
serve. |
| 1. |
The Senate Calendar Opens Up for Debate of Contested
Bills |
|
Thursday, the Senate opened up two slots on their calendar
called "special order" which are designed to guarantee that
a contested bill will receive debate and most likely a vote.
This is the straight ahead method of debating and voting
upon legislation.
There are several potential bills which the Senate could
vote to put in those special order slots. The one rumored to
be the primary target is H. 3689 - the15% cap on property
tax valuations. Another likely prospect is H. 3555 - the hog
bill. Neither of these bills is a positive proposal for
local governments and the citizens they serve. Please see
the discussions below. |
|
2. |
Billboards, Signs and Takings -
H. 4556 |
| |
On Wednesday, the House voted to recommit this legislation
to committee. This should kill H. 4556 for the session. S.
831 is on the contested Senate calendar but would require a
2/3 vote in the House before it can be considered. In light
of the House action this week, this is unlikely. Attached
to this report is a copy of the
roll call vote where
the House refused to adopt the Education Committee
amendment, thereby effectively defeating the bill. Those
voting No (N) were on our side. Please make the effort to
contact them again to thank them.
A special thanks to B. R. Skelton and Thayer Rivers who
argued forcefully against the bill. Thanks to Walton McLeod,
Gilda Cobb-Hunter and David Umphlet who supported local
government by asking the proponents tough questions during
the debate. Thanks also to Gene Pinson and others who worked
the floor during the debate. Of course, thanks to each of
you who contacted your House member. |
|
|
|
3. |
Hog Bill -
H. 3555 |
|
As discussed in past editions of the Friday Report, the hog
bill has the potential to go way beyond whether someone
wants factory hog farms in their community and could evolve
into a piece of legislation which severely restricts local
governments’ ability to address the regulatory needs of its
citizens. Several groups are interested in H. 3555 as a
vehicle to accomplish this assault on Home Rule. The only
way it can be considered at this late date is to set it for
Special Order. We oppose this action and hope you will help
us persuade the Senate not to set this bill for Special
Order. |
|
4. |
15% 20% Cap on Property Tax Valuation -
H. 3689 |
|
H. 3689 is of questionable constitutionality. H. 3689 will
create a great spike in millage rates. H. 3689 does not
address the primary reason for the continuing and relentless
escalation of millage rates - the EIA/EFA statutory millage
drivers. Were H. 3689 to pass, the resulting property
taxation system would be grossly inequitable to middle class
taxpayers, the business and industry tax base and the lower
end of the income scale. The legislation will also not
address taxpayer complaints in a lasting manner.
H. 3689 is currently on the contested Senate calendar
pending second reading. The only way it can be considered at
this late date is to set it for Special Order. We oppose
this action and hope you will help us persuade the Senate
not to do set this bill for Special Order. |
|
5. |
Senate Continues Work on the Budget |
|
The Senate is continuing to work on the budget at the
time of this publication. One new proviso of interest was
adopted on Wednesday. The Senate adopted a proviso which
places an advisory referendum on the statewide ballot for
the general election which reads: Do you favor increasing
the state sales and use tax to provide a credit against
property tax imposed for operating purposes on
owner-occupied residential property, motor vehicles, and
motor cycles?
|
|
6. |
No Golf Course Left Behind Act -
H. 5027 |
|
The House took up H. 5027 and adjourned debate until
Wednesday, May 12. The formula for valuing golf courses
contained in H. 5027 (or S. 917) is not recognized by any
professional appraisal group, used by any other state, or
one which takes into account the key to real estate value -
location. The votes were very close on this bill (50-48) and
it could very easily come back up again in another proposal.
Until a workable proposal can be agreed upon - continue
to contact the members of the House and Senate to explain
just how poor a proposal H. 5027 & S. 917 really are.
|
|
VOTE TABULATION H.4556
Those who voted in the affirmative are:
Bales Barfield Bingham
Breeland Ceips Clark
Davenport Delleney Edge
Frye Gilham Govan
Harrison Haskins Hayes
J. Hines Huggins Koon
Littlejohn Lloyd Loftis
Martin McGee J. H. Neal
Perry E. H. Pitts Rutherford
Sandifer Scott G. M. Smith
J. R. Smith W. D. Smith Snow
Stewart Stille Talley
Thompson Toole Townsend
Trotter Walker White
Wilkins
Total--43
Those who voted in the negative are:
Altman Anthony Battle
Bowers R. Brown Chellis
Clemmons Clyburn Cobb-Hunter
Coleman Dantzler Duncan
Emory Freeman Gourdine
Hagood Hamilton Harrell
Hinson Keegan Kennedy
Kirsh Leach Lee
Limehouse Lourie Lucas
Mack McCraw McLeod
Merrill Miller Moody-Lawrence
J. M. Neal Neilson Ott
Owens Parks Pinson
Quinn Rice Richardson
Rivers Scarborough Simrill
Sinclair Skelton G. R. Smith
J. E. Smith Tripp Umphlett
Viers Weeks Whipper
Whitmire Young
Total--56
Newly-Introduced
Legislation
|
Note: If you would like copies of any of the bills or if
you would like to offer comments to the SCAC staff, please call us toll-free at
1-800-922-6081 or fax us at 1 (803) 252-0379 or email us. Or, you can
view or download bills by clicking on the bill number.
|
House Bills
None
Senate Bills
None
Ratification of Acts
None
|
|
View 2003 Past Issues
of the Friday Report
|