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... 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

 

Issue 20- 04
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.

 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.
 

 

 


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


 

Issue 19- 04
May 21, 2004


 

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.


 

Issue 18- 04
May 14, 2004


 


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.


 

Issue 17- 04
May 7, 2004


 


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
 

 

 



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