Issue 6-05
February 18, 2005

Have you called or written to personally invite them to the reception for the General Assembly on Wednesday evening (6:00 to 7:30) at the Embassy Suites hotel?

If you haven’t then you’ve got homework for the weekend. The members of the General Assembly receive hundreds of invitations to breakfast, lunch, dinner, receptions and drop-ins. After a while they only come when they know someone from home is going to be there. That would also be an opportune time to let them know you’ll be over at the statehouse after lunch on Wednesday to see them.

Options that seem most likely to be considered at this juncture include: requiring all retirees under TERI or under the earnings cap to continue to make employee contributions; increasing the employer contribution rate; increasing the targeted investment return and addressing the bifurcated investment system that answers to both the State Treasurer and the Budget & Control Board. The subcommittee appears to be sympathetic to the continued funding of COLA’s.

The State Retirement and Pre-Retirement Advisory Board recommended the following:

• Require all retirees returning to work under TERI or the earnings cap to continue paying the employee contributions (reduces unfunded liability by five years);

• Increase employee contribution rate of 6% by not more than another 0.5% (reduces unfunded liability by five years);

• Increase the employer contribution rate of 7.55% (each 0.5% increase in the employer contribution reduces the funding period by five years; however, each 0.5% increase would cost the State $15 million and local entities approx. $7 million);

• Authorize full retirement after 30 years for new hires (reduces unfunded liability by one year);

• Support continuation of the TERI Program since it has minimal impact on the funding period (less than 6 months).

The State Retirement Systems Investment Panel recommended:

• Increase equities investments to 60% and decrease fixed investments to 40%;

• Expand the types of allowable equity investments;

• Support a single authority for investments instead of the current bifurcated system.

As you meet members of the Ways and Means Committee during the Mid-Year Conference thank them for continuing to fully fund the Local Government Fund. The following is a summary of some of the provisos which may be of interest to county governments:

9.46 Emergency Room Technical Assistance Contracts. The proviso subcommittee deleted this proviso which authorized DHEC to enter into contracts to provide local entities with technical assistance pertaining to appropriate and cost effective use of emergency rooms. The proviso was deleted because DHEC states that they have the statutory authority to enter into such contracts.

13.pa DSS Penalty Assessment. This proviso allows DSS to impose monetary penalties against a person, facility, or other entity for violating statutes or regulations pertaining to programs the department regulates. DSS is to promulgate regulations which include guidance on the decision to assess a penalty.

24.co DNR County Offices. This proviso would have directed DNR to reopen any of their offices in counties that experienced a 35% or higher population growth. The proviso subcommittee failed to adopt this proviso but it will likely be taken up again at full Ways and Means.

26.cg PRT Competitive Grants Program. Grants the Department of Parks, Recreation and Tourism the authority to fund on a competitive basis, grants for economic development as it relates

to the travel and tourism industry.

27.cgp Commerce Department Competitive Grants Program. Grants the Department of Commerce the authority to fund on a competitive basis, grants for economic development.

27.ccr Coordinating Council Rural Infrastructure Funds. Authorizes the Department of Commerce Coordinating Council to carry forward committed and uncommitted funds from the State Rural Infrastructure Fund for the authorized purposes as specified in its legislation.

30.15 Fee on State Case Management System. This proviso from last year 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.

33.svw Solicitors Victim/Witness Assistance Program. Directs that Solicitors Victim/Witness Assistance Programs funds shall be apportioned among the circuits on a per capita basis based upon the 2000 census and payments are to be made as soon as practical after the beginning of each quarter. The criminal justice budget subcommittee recommended $1.9 million be placed on a line for this purpose.

35.7 County Contributions for Indigent Defense. This proviso from last year 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. So remember not to give the indigent defense office a budget increase, unless you want them to get that budget amount each subsequent year.

36A.8 Vehicle License Tax Year. This amends an existing proviso to deal with tag flipping. The proviso directs DMV, after a tag has been transferred to another vehicle and before any subsequent tag transfer to the same vehicle is processed, to require a paid tax receipt based upon the value of the vehicle the tag is being transferred to for the remaining months of the tax year of the tag being transferred. This proviso still allows for a one time tag transfer and takes effect January 1, 2006.

39.lde DJJ Local District Effort. Proviso requires a local school district to transfer a pro rata share of the districts local portion of the base student cost per school day to the Department of Juvenile Justice for the time period in which the child is confined to a department facility.

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 in last year’s budget bill.

60.5 Assessments and Filing Fees. This proviso from last year 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.

63.efm Election File Merge. Requires the Office of Research and Statistics, in conjunction with the SC Election Commission to merge the voter registration file with the office’s Geocoded Address List and the district boundaries of the Congress, SC Senate, SC House, county councils, city councils, school districts and commissions of public works. The list is intended to provide county officials with a list of potential voters who are possibly assigned to the wrong election district.

63.cg Budget and Control Board Competitive Grants. Sets aside $3 million for a competitive grants program. The Executive Director of the Budget and Control Board may award grants for the purpose of enhancing the efficiency and effectiveness of government entities whether through the governmental entity or the private sector.

63.drd Division of Regional Development. Directs the Budget and Control Board to use $200,000 to reestablish the Division of Regional Development.

72.92 Assessment Audits. This proviso remains unchanged from last year. The 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.

B. Building Codes Modifications - S. 131. S. 131 provides that modifications to the building codes do not have to be readopted by the Building Codes Council unless the amended section has been substantively changed. The legislation received third reading in the Senate and is now in House LCI Committee.

C. Constables’ Workers’ Compensation - S. 135. This legislation deletes the requirement that counties who use voluntary state constable’s services pay for the constable’s workers’ compensation premiums. The bill provides that these premiums must be paid from the state general fund. S. 135 passed the Senate this week and is now in the House LCI Committee.

D. Absentee Ballot Signatures - H. 3414. A House Judiciary subcommittee gave a favorable report to H. 3414. The bill deletes the requirement that the signature of an absentee ballot applicant be witnessed.

E. Tobacco Fines - H. 3243. A House Judiciary subcommittee will consider this bill again next week. SCAC has asked to delete the provision which requires all fines be sent to the state general fund and then distributed half to the county of origin and half to the local alcohol and drug abuse center. This would create another special handling situation in court revenues - increasing costs of administration and creating audit hot spots.

F. Red Light Camera Enforcement - S. 40. The Senate Transportation Committee meeting scheduled to hear this bill was cancelled because of extended debate on tort reform. This will probably be considered next week.

G. County Development TIF - S. 97. This legislation would allow creation of a tax increment financing district (TIF) for underdeveloped areas. S. 97 also clearly authorizes multi-county authorities to administer projects built using this mechanism. The bill received third reading in the Senate and is now in the House LCI Committee.

H. Probate Judge Qualifications - H. 3084. The House Judiciary committee is scheduled to discuss H. 3084 on Tuesday, February 22.

I. Inmate Good Time Credits - S. 259. The Senate Corrections subcommittee gave a favorable report to S. 259, which allows the Department of Corrections to establish policies and procedures to restore lost good time credits for state prisoners.

J. Jury Questionnaires - S. 87. A Senate Judiciary subcommittee gave a favorable report to S. 87. Originally, the bill required the clerk of court to send a juror questionnaire with each individual juror summons and distribute completed questionnaires to all who request. The clerk would have been allowed to charge a reasonable fee for each copy requested, except for those requested by a public defender’s office, or governmental agency. The solicitors agreed to be responsible for furnishing the clerks of court with the questionnaire forms and disseminating the answered questionnaires. However, the subcommittee expressed concern about the appearance of fairness if the solicitors choose to do this. An amendment permitting the chief administrative judge of a circuit to allow additional written voir dire was adopted and the bill was sent to the full Senate Judiciary committee.

K. Hog Bill - S. 304. The Senate Agriculture subcommittee has been appointed for the hog bill. The members are: Senators Cromer, Bryant, Hutto, Verdin and Williams.

L. Seat Belt Fines - S.1. A House Education and Public Works amended the Senate version of S. 1 to raise the fine to $25, exempt the fine from surcharges and assessments, and take the fine to pay for the Amber Alert system. SCAC testified in support of the Senate passed fine and assessment provisions because they make administration more efficient and the base fine revenue is the main source of support for the magistrate court system.

M. Electing the Assessor - H. 3438. This legislation to make the assessor’s office an elected one will be before the House Special Laws subcommittee on Wednesday at 9:00 am in Room 516 of the Blatt Building. The subcommittee members are: Reps. Sinclair, Clemmons, Ceips, Allen, McLeod.

Newly-Introduced Legislation

HOUSE BILLS

H. 3342 - Requires public bodies receive approval from the solicitor before holding meetings closed to the public regarding allegations of misconduct.

H. 3538 - Permits a person who witnesses littering to swear out a warrant in the appropriate court to initiate prosecution against the offender.

H. 3539 - Creates the office of Appellate Defense within the office of Indigent Defense.

H. 3543 - Redefines stalking and harassment and revises the penalties for them.

H. 3554 - Provides that the city where a taxi principally operates, instead of the county, be responsible for approving the dimensions of the tags required to be placed on a taxi.

H. 3570 - Exempts documents and other information containing disciplinary actions taken against an employee of a public body from the Freedom of Information Act.

H. 3582 - Revises the procedures for the issuance and execution of an administrative warrant to investigate lead-based hazards.

H. 3583 - Increases the state sales tax by 2.5% and requires a referendum in counties in which the local option sales tax is currently imposed to determine whether to rescind the tax.

H. 3588 - Repeals the recognition of common law marriages after January 1, 2006.

H. 3590 - Requires all electronic voting machines to print out a receipt showing how the voter cast his vote that must be deposited in a receptacle.

H. 3593 - Establishes death by a vehicle as a misdemeanor offense.

H. 3594 - Provides that the terms of county officers, not set by another provision of law, is for 4 years beginning on the first Tuesday following the November general election and ending on the first Tuesday in January following the November general election 4 years later.

S. 488 - Provides that until July 1, 2005, to qualify as a magistrate a person must have a 2 year associates degree or have received at least 60 credit hours from an accredited institution of higher learning.

S. 490 - Provides that payment of a lien for state or county taxes, without payment on a lien for municipal taxes, does not extinguish the municipal lien but makes the municipal lien a first lien on the property.

S. 492 - Requires SLED to create and operate a statewide first responder building mapping information system.

S. 505 - Establishes the Department of Veterans’ Affairs as a separate and autonomous department of state government with a governing board consisting of 9 persons.

S. 506 - Permits counties to purchase a blanket fidelity bond covering county officials and or employees.

S. 507 - Constitutional amendment to provide a maximum millage rate that may be imposed to service a school’s general obligation debt.

Issue 5-05
February 11, 2005

Under H. 3381, signs that are nonconforming (those that would not be able to be erected if they were not in place before regulation or zoning) must receive compensation if they are ordered taken down and local government must pay the expenses if they are moved. It also places further restrictions on the ability of local governments to address the concerns of their citizens concerning outdoor off premises advertising. The measure allows arbitration to determine suitability of alternate sites and compensation. But the law includes factors to be included in compensation such as productivity. In other words, local government would have to pay for the "ANTICIPATED REVENUE" over the life of the sign.

The bill will be before the full LCI committee next week. Chairman Cato is the lead sponsor so it will be difficult to stop there. Contact your House members and ask them to oppose this bill. Ask them to build some balance into what the sign companies pay in taxes and what they say the sign is worth under this legislation. Thanks to Rep. Eldridge Emory for his support in subcommittee. He voted against the bill and made a strong statement affirming his support of Home Rule.

A companion bill, S. 420 was introduced in the Senate and referred to the Judiciary Committee. It has 16 sponsors.

The Senate began work on the budget this week as well. The Constitutional and Administrative subcommittee heard from the Election Commission and the State Auditor’s Office this week. The Election Commission testified that their first priority is $3 million to conduct the next primary. Their second priority is the 5% Help America Vote Act match. The State Auditor’s Office testified that they had $250,000 in unspent funds that are earmarked for auditing court fine and fee money.

This money was from last year’s proviso 72.92. The State Auditor’s Office stated that there weren’t any local governments identified as needing to be audited so the money wasn’t spent. They further stated that DPS claims that they can identify an entity that needs to be audited but has yet to do this. It is speculated that the same agencies which forced Proviso 72.92 through are now going to begin browbeating the State Auditor to begin auditing local governments.

The unfunded liability of the State Retirement System is currently at 28 years and cannot exceed 30 years. To fund the retirees’ COLA of 3.4% beginning July 1, 2005, would extend the unfunded liability by four years, exceeding 30 years.

State Treasurer Grady Patterson‘s plan requires TERI participants and retirees who return to work under the earnings cap to pay employee contributions, makes a $15 million state appropriation to the fund (a proportionate local match would be necessary also), and increases employer contributions by 2% over four years. He also advocated adopting a minimum vesting period for employees who participate in an optional retirement plan before being able to take their contributions and the state’s match; and to set up a trust fund for future COLAs.

The various options that the subcommittee will be reviewing in the coming weeks include:

• Increasing the targeted investment rate of return for investments in the fund from 7.25 to 7.75% (could cut 3+ years from unfunded liability period).

A. Exemption for Leased Volunteer Fire Departments Property - S. 209. A Senate Finance subcommittee reported S. 209 out favorably this week. The bill extends the property tax exemption on property owned by volunteer fire departments and rescue squads to property leased by these entities. The bill has a reported maximum fiscal impact of $23,000.

B. Building Codes Modifications - S. 131. The Senate LCI committee gave a favorable report to S. 131. The bill provides that modifications to the building codes do not have to be readopted by the Building Codes Council unless the amended section has been substantively changed. The bill is now pending second reading on the Senate floor.

C. Constables’ Workers’ Compensation - S. 135. The Senate Judiciary gave a favorable report to S. 135. The bill deletes the requirement that counties who use voluntary state constable’s services pay for the constable’s workers’ compensation premiums. The bill provides that these premiums must be paid from the state general fund. S. 135 was sent to the Senate floor and is now pending third reading.

D. Beer and Wine Taxes - S. 339. A Senate Finance subcommittee reported S. 339 out favorably this week. The legislation adds §12-21-1085 to state that, except for the sales and use tax or the local hospitality tax, the taxes imposed on beer and wine in Article 7, Title 12 are in lieu of all other taxes and licenses of the State, counties and municipalities. SCAC is asking for clarifying language to ensure that this provision does not exempt them from a business license tax.

E. Tobacco Fines - H. 3243. A House Judiciary subcommittee carried over a bill to address sales of tobacco to minors. SCAC has asked to delete the provision which requires all fines be sent to the state general fund and then distributed half to the county of origin and half to the local alcohol and drug abuse center. This would create another special handling situation in court revenues - increasing costs of administration and creating audit hot spots.

F. Red Light Camera Enforcement - S. 40. A Senate Transportation subcommittee considered a bill to authorize enforcement of traffic light signals by camera. SCAC asked to delete the provision waiving all surcharges and assessments on the fine for this violation and the requested amendment will be considered at the full committee meeting next week. The bill was sent to full committee with a favorable report.

G. County Development TIF - S. 97. This legislation would allow creation of a tax increment financing district (TIF) for underdeveloped areas. S. 97 also clearly authorizes multi-county authorities to administer projects built using this mechanism. The bill was given a favorable report and sent to the Senate floor for second reading.

H. Second Injury Fund Sunset - H. 3284. Tuesday, February 15, there will be another meeting on this legislation to close the SIF. The subcommittee is composed of Reps. Chellis (chair), Leach, Emory, Dantzler and Thompson.

Newly-Introduced Legislation

HOUSE BILLS

H. 3342 - Requires public bodies receive approval from the solicitor before holding meetings closed to the public regarding allegations of misconduct.

H. 3483 - Provides that a fee is not required for the initial filing for post conviction relief.

H. 3489 - Permits nonpartisan county elections.

H. 3494 - Provides that it is unlawful to directly or indirectly threaten a public official.

H. 3495 - Requires the Election Commission to conduct presidential preference primaries.

H. 3509 - Requires a person who is stopped by a police officer to turn on the vehicle’s interior light and open the front window.

H. 3513 - Permits counties to purchase a blanket fidelity bond covering county officials and or employees.

H. 3519 - Provides that when DOR contracts with a governmental entity to collect an outstanding debt, it may only garnish wages when collecting an outstanding tax liability owed the governmental agency.

H. 3521 - Permits County First Steps Partnerships to participate in the state health and dental insurance plans.

H. 3523 - Permits the Department of Corrections to enter into contracts with private sector entities for the use of inmate labor.

H. 3526 - Requires a municipality to provide water and sewer services to a property owner upon written request and when the owner agrees to pay the costs of extending the services.

S. 419 - Increases the age for criminal sexual misconduct with a minor from less than 16 years of age to less than 17 years of age.

S. 420 - Enacts the SC Landowner and Advertising Protection and Property Valuation Act.

S. 462 - Requires a municipality to provide water and sewer services to a property owner upon written request and when the owner agrees to pay the costs of extending the services.

S. 464 - Provides that SLED may authorize a sheriff’s department to conduct a criminal history background check that SLED is otherwise required to conduct.

S. 471 - Provides that every resident of the state who files an income tax return may participate in the state retirement system.

S. 472 - Provides that every resident of the state who files an income tax return may participate in the state health plan.

S. 473 - Provides that certain property tax exemptions given to a veteran must be extended to the veteran’s spouse if residency is established prior to the veteran’s death.

S. 475 - Provides that a judge and or court employee cannot release information to the public regarding an ongoing investigation.

S. 484 - Enacts the School Equity and Property Tax Relief Act, provides for a 1% sales tax increase, imposes a statewide property tax rate of 100 mills, and requires a 2/3 vote of a county’s governing body to increase the millage rate.

S. 485 - Enacts the School Equity and Property Tax Relief Act, provides for a 2% sales tax increase, provides that for a 3 year period beginning July 1, 2005 a county may increase the millage rate upon a 2/3 vote by the county’s governing body.

Issue 4-05
February 4, 2005

B. Probate Judge Qualifications - H. 3084. A House Judiciary subcommittee gave a favorable report as amended to H. 3084. The bill, as amended, is a revision of probate judge qualifications supported by SCAC last session. The amendment changes the requirement of "a degree from an accredited college or community college" to "a four-year bachelor’s degree from an accredited post secondary institution."

C. Seatbelts - S. 1. This bill passed the Senate. The fine for mandatory seatbelt violations were changed from $25 to 12, while the existing exception to applying assessments and surcharges was deleted and another special handling rule regarding the fine was avoided. The fine for child safety seats was also reduced to match the seatbelt fine.

D. Noncompliant Accommodations Tax Expenditures - S. 27. The legislation authorizes a county or municipality to correct expenditures deemed noncompliant by the Tourism Expenditure Review Committee (TERC) prior to having that amount withheld by TERC. S. 27 passed the Senate and is now in House Ways & Means Committee.

E. Property Used Exclusively by Scouts - S. 207. This bill passed the Senate, went without reference in the House and passed the House this week. S. 207 extends the exemption from property taxes for property owned by the Boy and Girl Scouts to any property used exclusively by these organizations. The bill would apply for property tax years beginning after 2001.

F. Volunteer Firefighter Job Protection - S. 67. A Senate LCI Subcommittee took up this proposal to protect a firefighter’s job while he is responding to an emergency call. Originally, S. 67 only applied to those volunteers who served a fire authority serving less than 3500 people. The committee members believed that it should apply to all jurisdictions and struck the cap. The bill was then carried over pending additional input. SCAC requested a definition of "emergency" to help define the scope of the bill. Subcommittee members are Sens. Alexander, Setzler and Mescher.

G. Straight Party Ticket - S. 185. S. 185 is pending second reading on the Senate floor. The bill provides that a person who votes a straight party ticket would also be voting for that party’s presidential candidate.

H. All-Terrain Vehicle Registration - H. 3087. An Education and Public Works subcommittee adjourned debate on H. 3087. The bill would require all ATV’s to be registered with DMV and exempt them from city and county property taxes.

Last year the General Assembly passed the Vested Rights Act, 2004 Act No. 287. The default vesting period is five years. SCAC protected the ability of a local government to make a decision as to whether and when a project becomes vested by defining approval as a final action of the governing body and the exhausting of administrative remedies. If the county adopts an ordinance, the vesting period may be as short as two years. To take advantage of these protections the county needs to pass an ordinance based on the Act before July 1, 2005. In response to the high number of requests, the memo and model ordinance is being posted on the SCAC web site - www.sccounties.org.

Newly-Introduced Legislation

HOUSE BILLS

H. 3342 - Requires public bodies receive approval from the solicitor before holding meetings closed to the public regarding allegations of misconduct.

H. 3408 - Provides that a full time law enforcement officer who is injured while making or attempting to make an arrest may be placed on administrative leave with pay instead of sick leave.

H. 3414 - Deletes the requirement that the signature or mark of an absentee applicant be witnessed.

H. 3425 - Deletes the requirement that no part of a proposed municipality be within 5 miles of the boundary of an active incorporated municipality.

H. 3426 - Establishes a Joint Legislative Committee on Municipal Incorporation to review the filing of an area seeking incorporation.

H. 3429 - Provides that trailers used for camping and recreational travel that serve as a primary or secondary residence be subject to property taxes.

H. 3434 - Repeals the TERI program effective July 1, 2010.

H. 3437 - Provides a 15% cap on property tax increases.

H. 3438 - Requires county assessors to be elected at the time of the general election.

H. 3451 - Provides that a passport may be used as proof of identity when voting.

H. 3453 - Requires boats that serve as a primary or secondary residence to be taxed as real property, also limits property taxes on watercraft to $1,500 for a property tax year.

H. 3454 - Further provides for the contents of the affidavit that an attorney is permitted to file in regard to a mortgage he has satisfied.

H. 3456 - Provides that rollback millage can only be increased after receiving a favorable vote in a referendum.

H. 3461 - Provides that a college ID containing a voter’s picture may be used as proof of identity when voting.

H. 3464 - Permits a person to vote during a period beginning 5 days before a general election.

H. 3474 - Provides that payments made in lieu of taxes by nonprofit housing corporations are due in the same manner as property taxes are paid.

H. 3475 - Extends the spending limitation imposed by the Fiscal Discipline Plan of 2004 through fiscal year 2010-2011.

S. 382 - Permits a person to vote in more than one primary election in the same day.

S. 383 - Requires that identifying financial information be deleted from public body records and that personal identifying information be kept confidential by a public body.

S. 384 - Provides that half of the fines collected from the illegal sale of tobacco to minors must be distributed to the county in which the conviction occurred.

S. 385 - Enacts the Uniform Interstate Enforcement of Domestic Violence Protection Orders Act.

S. 392 - Provides that a case involving the shoplifting of merchandise valued at $1,000 or less may be tried in magistrates court.

S. 396 - Provides that trailers used for camping and recreational travel that serve as a primary or secondary residence be subject to property taxes.

S. 399 - Permits a county to require a business registration fee of up to $15, also provides that a county treasurer cannot issue a tax receipt unless the taxes, penalties, costs and all other charges have been paid.