H. 3264 to provide a property tax valuation freeze for owner occupied real estate.

H. 3350 to provide another local sales tax for municipal capital projects.

Why do these bills hurt the chances of comprehensive property tax reform?

H. 3264 -- assessed valuation freeze

• this only creates large tax shifts in the form of much higher millage rates on all property

• manufacturing and commercial property will pay the largest share
• those unable to afford their own home will pay significantly higher rents and car taxes

• this bill is a band aid approach because it does nothing to address the statutory millage rate drivers which cause school tax rates to increase at exponential growth rates

• discourages economic development, especially in less developed areas of our state, by compounding the problems we have with higher millage rates

• suffers from significant legal questions involving equal protection -- how do you justify taxing identical houses differently just because one owner bought after the other?

• this change also impacts the distribution of state funding for school districts in the same manner that the 20% cap did -- when a district loses state aid, it is typically made up with property tax revenue

H. 3350 -- municipal sales tax increase authorization

• this authorization would make it much more difficult to consider property restructuring proposals which use increased sales taxes as replacement revenue

• municipalities get an equal vote with the county in developing the project list to be funded through the existing countywide capital projects sales tax, so there really is no need to further complicate property tax restructuring

A. Counties could enact regulations providing for set backs on chicken farms three times greater than DHEC regulations.  They would not be able to pass regulations impacting other livestock or agriculture businesses (including hog farms).

B. Landowners could mutually agree to waive county set back requirements.

C. Existing local ordinances and regulations would remain in effect .

D. Existing agriculture facilities are "grand fathered" and would not be subject to future local enactments.

E. The bill pertains solely to livestock and agriculture facilities.  (Other businesses would be taken out.)

When the legislation will be considered is a matter of speculation.  It will be placed on the contested calendar.  We expect heavy floor debate and many additional proposed amendments.  SCAC appreciates the efforts of the entire Committee to create a reasonable piece of legislation.  Senators consistently voting to support local government were: Sens. Leventis, Lourie, Cleary, Matthews, McGill, Campsen, and Williams.

Thanks to those who made contacts with your senator.  Obviously the bill is still not something that SCAC can support because it impacts your ability as a developer of local land use policy to consider the requests of your constituents.  S. 304 will hopefully improve or be defeated as a result of your additional calls, visits, and other contacts with the Senators.

S. 262 raises fiscal concerns to counties, municipalities, and state criminal justice agencies because the bill is drafted so that anyone entering into this PTI program would pay no fine or assessments.

There are also concerns about liability for injuries during community service activity.  The current PTI program administrator gave out their insurance policy which has a medical benefit of $25,000 and a death benefit of $2,500.  It is very likely that an accident could occur involving a traffic PTI participant that exceeds the medical benefit, at which time the county may become liable for any excess medical expenses.  This point alone justifies inclusion of a provision requiring a joint agreement between the county and solicitor prior to creating one of these programs.  A prior written agreement is required by statute to set up a bad check diversion program.

SCAC supports an amendment that Sen. Cromer will propose requiring an administrative fee be charged equal to all fines, assessments, and surcharges that would have applied to the traffic ticket.  SCAC also supports amending the bill to require basic financial safeguards, such as an annual audit.

B. Business Registration Fee -- S. 337.  This bill would allow counties to adopt a countywide business registration fee.  A condition of the registration would be to be current on all property tax bills.  If a business failed to pay its business personal property taxes, notices could be sent out well in advance of renewal time to let the owner know that the matter has to be cleared up prior to renewal.  The alternative is to seize and sell the property.  This business registration would prohibit the adoption of a county business license tax currently authorized for revenue.  The county would be allowed to charge up to $15 per registration to offset the cost of administering the program.  Please contact your senator to ask for support on this bill.  S. 337 is pending second reading on the Senate calendar.

C. Juror Questionnaire -- S. 87.  This bill allows prosecutors the same number of jury strikes as the criminal defense.  The bill also requires the clerk of court to send out a jury questionnaire with all juror summons, make available a set of the responses to parties, and set up elaborate privacy procedures.  The estimated fiscal impact of the questionnaire is up to $300,000.  SCAC staff is working with several other interested groups and Senate staff on a funding solution.  S. 87 was carried over for consideration by the Senate Judiciary Committee next week.

D. Smoking in Government Buildings -- S. 351.  The Senate Medical Affairs Committee carried over S. 351.  The bill would ban smoking in private offices and designated areas of employee break areas in government buildings.  It also increases the minimum fine for a violation from $10 to $25.

E. Uniform Traffic Tickets -- S. 596.  A Senate Transportation subcommittee gave a favorable report to an amended version of S. 596.  The bill permits a law enforcement agency, upon approval by DPS, to use computers and other electronic devices to issue and store uniform traffic tickets.  S. 596 has been sent to the Senate Transportation committee.

F. Casino Boats -- S. 615.  A Senate Judiciary subcommittee gave a favorable report to an amended version of S. 615.  The bill authorizes counties to prohibit or regulate the operation of casino boats that depart from and return to the territorial waters of the state.  The amendment allows a county to adopt a surcharge of 10% on each casino boat ticket and a surcharge of at least 5% of the boat’s gross proceeds.  The bill is not applicable to passenger cruise liners.  S. 615 has been sent to the Senate Judiciary Committee.

G. Elected Assessors -- H. 3438.  This bill to require election of assessors may be before the House Judiciary Committee next week when they return.

H. Nonpartisan County Elections -- H. 3489.  Counties would be authorized, not required, to have non-partisan elections in much the same manner as cities, school districts, and special purpose districts currently hold elections.  H. 3489 will probably be before the House Judiciary Committee next week.  This is not a uniformly applauded proposal and calls to the committee members are necessary if this is to be passed.

Newly-Introduced Legislation

S. 640 -- Requires the county assessor, treasurer, and auditor to divide a divisible parcel of real property for the purposes of a delinquent tax sale to satisfy payment of taxes, assessments, penalties, and costs.

S. 641 -- Permits counties, in which less than $900,000 a year in state accommodations tax is collected, to use up to 50% of the previous year’s local accommodations tax for operations and maintenance purposes provided for by law.

S. 644 -- Establishes time lines and procedures for the circuit and Supreme Court to follow when considering election appeals.

S. 650 -- Provides that a sex offender must be placed under satellite surveillance continuously while on probation.

S. 664 -- Defines the term "candidate for public office" so as to create the offense of slander or libel of a candidate for public office.

S. 669 -- Provides that a person whose personal identifying information which may have been accessed through a breach of a political subdivision’s computerized data must be notified.

Proviso 9.new -- Beach Renourishment: Directs that beach renourishment funds shall be spent in accordance with the priorities established by the Office of Coastal Resource Management.

Proviso 27.new -- Economic Development: Directs the Department of Commerce to give special consideration for economic development purposes to counties with a population of 60,000 or less, unemployment rates above the state average, and that are members of the North East Strategic Alliance.  Special consideration for economic development purposes includes eligibility for the Competitive Grants Program, Rural Infrastructure Funds, and Job Development Credits.

Proviso 30.new -- Judiciary Courthouse Security: Authorizes the Office of Court Administration to spend one million dollars to improve security within and outside the various county courthouses throughout the state.  Monies in a carryover account were used to provide $500,000 for this directive.

Proviso 56DD.new -- SLED Courthouse Security: Authorizes the SLED to issue up to $1 million in grants to local law enforcement agencies to enhance courthouse security.  Monies in a carryover account were used to provide $500,000 for this directive.

Proviso 63.43 -- Division of Regional Development: The Ways and Means version of the budget directed the Budget and Control Board to use $200,000 to reestablish the Division of Regional Development.  The House amended this proviso to send the money to the Department of Disabilities and Special Needs to reduce the Residential Waiting List instead.

Proviso 72.new -- Use of Accommodations Tax Revenue: This proviso takes the first 5% of all revenues collected from the tax imposed pursuant to §12-36-2630(3) (the local portion of the State Accommodations Tax) and credits it to the SC Beach Restoration and Improvement Trust Fund.

S. 617 is a constitutional amendment to allow investment in foreign corporations.  This proposal is a function of the desire to lower the risk of equity investment while increasing the return of the portfolio.

S. 618 does a number of things, including the following:

• requires those retirees who participate in TERI or return to work under the $50,000 earnings limitation to continue making the employee contribution to the retirement system;

• bars TERI participants on 7/1/05 from returning to work for an entity which is a member of the SC Retirement System, not even under the earnings limitation;

• requires new employees to elect between two different retirement tracks within 30 days of employment: the standard plan would require 30 years of service, and the alternate plan would allow retirement after 28 years of service but would carry a higher multiplier in the monthly benefit calculation and a higher employee contribution to cover that cost;

• there would be no employer contribution rate increase; and

• investment management of both equities and fixed income assets would be unified in one commission, with the investment earnings target being stated in the bill as 8% (instead of the current 7.25%)

There will be a great deal of debate on these proposals.  There will also be changes to the contents of the bill, if not in the Senate, then in the House.  SCAC will keep you informed.

B. Juror Questionnaire -- S. 87.  This is the bill allowing prosecutors the same number of jury strikes as the criminal defense.  The bill also requires the clerk of court to send out a jury questionnaire with all juror summons and then make available a set of responses to parties.  The estimated fiscal impact of the questionnaire is up to $300,000.  SCAC staff is working with several other interested groups and Senate staff on a funding solution.  S. 87 was carried over for an additional week in Senate Judiciary Committee this week.

C. Property Tax Monthly Installments -- S. 363.  S. 363 modifies the existing authorization for counties to accept quarterly payments in advance of property taxes to allow monthly payments in advance of property taxes.  S. 363 has passed the Senate and is now in the House Ways and Means Committee.

D. Motion Picture Incentive Act -- H. 3152.  H. 3152 extends the existing sales tax exemption for machinery and supplies used in motion picture filming to local sales taxes.  The anticipated local fiscal impact is $66,000.  The bill was amended to increase some of the state tax incentives and given third reading in the Senate.

E. The Efficient Tax Collections Act of 2005 -- S. 399.  A Senate Finance subcommittee gave a favorable report to this legislation to improve the efficiency of property tax collection procedures.  Thanks to the county tax collectors who attended the subcommittee meeting.  S. 399 will be on the Finance Committee agenda next Tuesday.

F. Building Code Modifications -- H. 3026.  This legislation grandfathers existing modifications made to the standard building codes when a new edition of the standard building code is adopted.  H. 3026 was ratified and has gone to the Governor.

G. Air Carrier Hub -- H. 3234.  This legislation expands air carrier hub tax incentives and has passed the Senate and awaits concurrence by the House.

H. Alcohol Taxes -- S. 339.  This is the bill which states that no additional taxes on beer or the delivery of beer are allowed, other than those already listed in statute.  S. 339 was ratified this week.

I. Presidential Straight Ticket Ballot -- S. 185.  This bill would combine the presidential and vice presidential vote with the offices when voting a straight party ticket ballot.  S. 185 has passed the Senate and is in the House.

Orientation Training for Planning/Zoning Officials and Employees -- May 12 and August 23

Failure to comply with Act 204 of 2003 brings into question land use planning actions.  All counties and cities with a population of 35,000 or more have until January 1, 2006.  Smaller jurisdictions have until January 1, 2007.  You are welcome to bring municipal planning officials and employees along as long as they register.

Currently, these are the only orientation courses which have been approved by the State Planning Education Advisory Committee.

Newly-Introduced Legislation

HOUSE BILLS

H. 3755 -- Provides that "high concentration of tourism activity" means when a county collects more than $900,000 in accommodations tax in one fiscal year; also changes the Accommodations Tax Oversight Committee to the Tourism Expenditure Review Committee.

H. 3759 -- Requires that vehicles which are exempt from property taxes because they are part of the inventory held for sale by a licensed motor vehicle dealer must also be used exclusively for dealer purposes to be exempt.

H. 3762 -- Authorizes a person submitting a document that the register of deeds has refused to file to commence suit requiring the clerk of court or the register of deeds to accept the document for filing.

H. 3763 -- Makes technical changes regarding property taxation of certain entities to make it consistent with Subchapter K of the Internal Revenue Code.

H. 3765 -- Provides that if a taxpayer asserts a value for property used in or owned by a business for property tax purposes that is 50% or more below the property’s property tax value, there must be added to the tax an amount equal to 50% of the underpayment which would have resulted if the value asserted had been accepted.

H. 3768 -- Clarifies the method of calculating the allowed consumer price index increase in the millage rate; also permits counties to charge reasonable service fees to nonprofit housing corporations not to exceed taxes that would otherwise be due on the property.

H. 3774 -- Requires bail bondsmen and runners to be issued ID cards which they must possess when they perform their duties.

H. 3779 -- Revises the definitions of "blighted area" and "conservation area" as found in the tax increment financing law.

H. 3791 -- Provides that all public monies distributed to schools in this state must be distributed pursuant to the Education Finance Act funding formula.

S. 617 -- Constitutional amendment allowing state retirement funds to be invested in foreign corporations.

S. 618 -- Enacts the State Retirement System Preservation and Investment Reform Act requiring TERI participants or those who return to work under the earnings limitation to continue making the employee contribution to the retirement system.

S. 620 -- Provides that a law enforcement agency may establish automatic traffic control systems in highway work zones and school zones.

S. 627 -- Increases the civil jurisdiction of magistrates courts from $7,500 to $15,000.

S. 630 -- Enacts the Forestry Deregulation Act, defines the practice of forestry, and establishes a misdemeanor offense and civil cause of action for using a deceptive, false, or misleading statement in the practice of forestry and provides criminal and civil penalties.

S. 631 -- Permits counties to enact ordinances for the location, identification, inspection, and removal of abandoned or derelict mobile homes and to charge a fee to defray costs.

S. 636 -- Enacts the Pyrotechnics Deregulation Act and transfers the responsibilities of the State Board of Pyrotechnic Safety to the Office of the State Fire Marshal.

RATIFICATION OF ACTS

The following bills have been passed by both chambers and are now before the Governor for his signature or veto.

(R.2), S. 207 -- Provides property tax exemptions to property used by the Boy or Girl Scouts.

(R.15), S. 339 -- Provides that with certain exceptions, beer and wine license taxes are in lieu of all other taxes on beer and wine.

(R.21), S. 583 -- Joint resolution extending the property tax exemption for property not owned but used exclusively by the Boy and Girl Scouts.

(R.24), H. 3026 -- Provides that modifications to the building codes do not have to be readopted by the Building Codes Council for subsequent editions of the building codes.

(R.25), H. 3126 -- Deletes requirement that a vehicle’s owner sign the vehicle’s registration card.

1) Local governments participated in the development of statewide agriculture regulations.

Response: That is true but the parties agreed that local governments could consider more restrictive regulations, such as setbacks and zoning.

2) Local regulations are arbitrary and lack input from experts.

Response: Local regulations reflect the position of the community concerning the protection of property values.  There are many legal decisions which clearly spell out that private property rights do not take precedence over the public good.

3) Zoning will cure all problems and the counties need to pass zoning.

Response: Zoning is a local issue but S. 304 negates that because it forbids the issuance of permits.  If you cannot permit, you cannot enforce zoning.

4) Marlboro County tried to pass restrictions which would have put people out of business.

Response: The ordinance did not pass after the opponents got involved.  The Council heard all sides and then made its decision.  Evidently the system works.

5) We do not need 46 DHECs.

Response: Counties are not engaged in environmental permitting.  They are not testing or monitoring.  Some counties have enacted set backs.  That is not duplicating DHEC’s functions.

6) This isn’t a Home Rule issue.

Response: It is a Home Rule issue because the legislature is considering a bill that will impact the ability of local governments to respond to their constituency.

Spending items of note in the Ways and Means version of the budget:

• The Local Government Fund was fully funded according to the statutory formula.

• State employees were given a 4% raise and law enforcement employees that make less than the Southeastern average for their job classification were given an additional 6% pay raise for a total of 10%.

• $33 million was allocated to the State Health Insurance Plan to ensure no rate increases or benefit reductions.

• Funding for public libraries was increased to $2 per capita.

A few of the new or changed provisos of interest include the following list (see earlier Friday Reports for a thorough listing of the provisos):

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.

63.41 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.

63.43 Division of Regional Development.  Directs the Budget and Control Board to use $200,000 to reestablish the Division of Regional Development to coordinate land use planning efforts by counties and cities.

63.45 Law Enforcement Personnel Salary Review.  This proviso directs the Budget and Control Board to conduct another study of state law enforcement personnel to add comparisons to local law enforcement counterparts.  The proviso states that if a county fails to cooperate with a request for information under this proviso the State Treasurer’s Office may withhold the county’s aid to subdivision funding until the requested information is received.

H. 3550 would cripple any plan to give systematic property tax relief using sales tax revenue as a replacement for property tax revenue.  H. 3550 also effectively precludes the use of the current capital projects sales for countywide projects.

Some of the problems inherent in this legislation are:

• One of the arguments which gets the most attention against the various property tax plans which use sales tax revenue to reduce/replace property tax revenue is the numerous different local option sales taxes already authorized.  This just makes the statewide answer to calls for property tax restructuring that much more difficult.

• The existing Capital Projects Sales Tax mandates equal numbers of county and municipal members on the project selection committee.  H. 3350 allows the municipality to decide which projects would be funded with no voice for those citizens outside the municipality but who pay sales taxes inside the city.

• Because city residents are unlikely to vote for additional sales taxes, it seems probable that a county which wanted to implement the Capital Project Sales Tax would be foreclosed from this revenue source should this bill pass.

PLEASE CONTACT THE MEMBERS OF THE WAYS AND MEANS COMMITTEE AND ASK THAT THEY VOTE AGAINST H. 3350.

SCAC spoke in support of the bill, noting that most elected county officials work in a nonpartisan environment and their daily operations are usually driven by standard operating procedures.  It is inherently a local matter and this bill exemplifies the concept of Home Rule.  H. 3489 has been sent to the full House Judiciary, where it is expected to encounter much stiffer opposition when they meet in three weeks.  Please make contacts in support of H. 3489.

B. Uniform Voting Machine -- H. 3347.  This bill to eliminate any local choice between voting machines which meet HAVA standards was recalled from House Judiciary Committee, passed the House, and is now in Senate Judiciary Committee.  This would require every county which does not have the State Election Commission approved machine to purchase a new voting system.  New machines would be required even if existing machines meet federal standards.  The State Election Commission claims those federal standards are the reason new machines are needed.

C. Mental Health Admissions and Protective Custody -- H. 3412.  H. 3412 passed the House and is now in the Senate Medical Affairs Committee.  The bill allows a law enforcement officer to take a person into protective custody if the officer reasonably believes that the person is mentally ill or is suffering from chemical dependency.  The bill also contains a number of measures to combat the service delivery problems for the mentally ill which recently led to warehousing in public hospitals.

D. DD-214 Removal from Public Record -- H. 3257.  This bill allows a veteran to remove his DD-214 form from the public files by paying a $10 fee to the clerk of court and making the request.  H. 3257 passed the House this week and is now in the Senate.

E. WET Test -- S. 326.  The House passed S. 326 this week.  The bill provides that the provisions of the Aquatic Life Protection Act do not apply to any permit applicant or existing permittee so long as the permittee or permit applicant notifies DHEC in writing that it is opting out of this act.

F. Probate Court Jurisdiction -- H. 3039.  A House Judiciary subcommittee gave a favorable report to H. 3039.  The bill provides the family court and the probate court with concurrent jurisdiction to hear and determine matters concerning the validity of marriages of decedents and paternity of an individual.

G. Juror Questionnaire -- S. 87.  This is the bill allowing prosecutors the same number of jury strikes as the criminal defense.  The bill also requires the clerk of court to send out a jury questionnaire with all juror summons and then make available a set of responses to parties.  There is an estimated fiscal impact of up to $300,000.  SCAC staff is working with several other interested groups and Senate staff on a funding solution.

H. Property Tax Monthly Installments -- S. 363.  S. 363 modifies the existing authorization for counties to accept quarterly payments in advance of property taxes to allow monthly payments in advance of property taxes.  S. 363 was reported out favorably by the Finance Committee this week.

I. Motion Picture Incentive Act -- H. 3152.  H. 3152 extends the existing sales tax exemption for machinery and supplies used in motion picture filming to local sales taxes.  The anticipated local fiscal impact is $66,000.  The Senate Finance Committee reported the bill out favorably this week.

J. Pre-Trial Intervention for Traffic Tickets -- S. 262.  A Senate Judiciary subcommittee met on this proposal to create a traffic ticket PTI system and it was carried over after concerns were raised about the fiscal impact to the courts and criminal justice agencies.  There are also liability concerns for public service programs under this authorization.  SCAC is working with numerous interested parties, including the bill’s proponents, to restructure the proposal to minimize all concerns and achieve the goal of the bill.

K. Golf Course Appraisal -- S. 589.  Tuesday, March 15, Senate Finance Committee will take up S. 589.  This bill is an attempt to adopt the guidelines set forth in a recent Charleston ALJ case.  However, the bill does not codify all of the holdings of the decision.  Contact the members of the Finance Committee and ask that this be sent to a subcommittee to be sure that all of the holdings of the Charleston case are incorporated into S. 589.

L. Red Light Camera Enforcement -- S. 40.  This legislation would allow jurisdictions with a population over 20,000 to use cameras to enforce red light traffic control devices.  This bill is currently on the contested Senate calendar.

Orientation Training for Planning/Zoning Officials and Employees -- May 12 and August 23

All counties and cities over 35,000 in population must provide six hours of orientation training to their planning and zoning officials and employees by January 1, 2006.  Those jurisdictions under 35,000 population have until January 1, 2007 to receive this training, but this satellite course will satisfy the requirement for them as well.

This satellite course is being provided by SCAC as part of our service package FREE OF CHARGE.  This orientation course is currently the only course to receive approval from the State Planning Education Advisory Committee.  This course is open to all who may register, including municipal officials and employees.  SCAC will provide further information to county officials on this training in the coming weeks.

Newly-Introduced Legislation

HOUSE BILLS

H. 3709 - Provides that a county shall not license or levy a license tax on a bail bondsman.

H. 3714 - Freezes property taxes, imposes a 2% sales tax increase, requires a 2/3 vote by governing body to increase millage rate, and requires counties to have a referendum to determine whether to rescind local option sales taxes.

H. 3718 - Eliminates property tax exemption for nonprofit housing corporations devoted to providing housing to low income residents.

H. 3720 - Requires the State Election Commission to take all steps necessary, including but not limited to, electronic transmissions, to ensure that out-of-state residents have the opportunity to receive and cast absentee ballots.

H. 3721 - Requires the State Election Commission to review the withdrawal of a candidate in a multi-county election or an election for a member of the General Assembly.

H. 3724 - Extends the application of the Tax Increment Financing Act for Counties to more rural areas.

H. 3725 - Exempts clerks of court, probate judges, sheriffs, registers of deeds, county auditors, county treasurers, and county coroners from across the board state budget cuts; also provides that the county coroners shall receive state supplements.

H. 3726 - Provides for the regulation, registration, and titling of ATV’s by DNR.

H. 3727 - Constitutional amendment providing that if property has been exempted from property tax imposed for school operations and the state sales tax is increased to reimburse schools for this exemption, the exemption can not later be repealed or reduced.

H. 3730 - Provides that manufactured homes, upon meeting certain requirements, can be treated as real property.

H. 3735 - Requires the court to mail a copy of a judgment against a vehicle owner for failure to pay a toll and requires DMV to suspend a vehicle’s registration until the judgment is satisfied.

S. 596 - Provides that a law enforcement agency may use computers and other electronic devices to issue uniform traffic tickets and store information resulting from their issuance if the methods are approved by DPS.

S. 601 - Creates the Parole and Pardon Authority and provides for its members, duties, and powers.

S. 610 - Provides that candidates for certification as state or local correctional officers may hold a valid current driver’s license issued by any jurisdiction in the U.S..

S. 611 - Provides that a custodian of a jail shall only destroy information required to be released to the public regarding a person who has been found innocent of a criminal offense or has had the charges dismissed.

S. 614 - Requires the court to mail a copy of a judgment against a vehicle owner for failure to pay a toll and requires DMV to suspend a vehicle’s registration until the judgment is satisfied.

S. 615 - Provides that counties may prohibit or regulate the operation of gambling vessels by ordinance.

H. 3381 passed the House by a vote of 90 - 24. Several Legislators took the floor to offer amendments and to support the local governments’ position. Please thank Reps. Brady, Pinson, Hagood, McLeod, Rivers, James Smith and Emory. On a positive note the bill was amended to include a grandfather clause that seeks to protect those jurisdictions that have enacted sign ordinances prior to the effective date of the legislation.

If you are concerned about the future impact of this legislation, contact your Senator. This is a Home Rule issue. This YOUR authority to make decisions on land use that affects your community and your neighbors. Please redouble your efforts in the Senate.

The revised Hog Bill will be the subject of a hearing in a Senate Agriculture subcommittee on March 10, at 9:00 am in Room 207 of the Gressette Senate Office Building. S. 304 is an effort by the business community (including agriculture) to by-pass local conditions and preferences when they are required to get permits in addition to State requirements. This issue is beginning to heat up and we will need your help.

This is about protecting property values in the existing community. S. 304 would jeopardize or raise doubts about existing programs in areas such as construction, erosion control, excavation, grading, landfills, mobile homes, and billboards. This bill is not about creating 46 local DHEC’s, we are aware of no county which wants or can afford to get into highly technical areas of environmental regulation. Most of those subject matters are preempted by the federal government.

The subcommittee members are Sens. Cromer (chair), Campsen, Hutto, Verdin, and Williams. Please contact these Senators to let them know your concerns.

A House Ways & Means subcommittee passed this legislation on a 2 - 0 vote, despite the fact that there were 5 members of the subcommittee present. There seemed to be very little actual support for the proposal, but a desire to "do something." The members of the subcommittee all stated a preference for systemic property tax relief instead of these band-aid bills.

This proposal freezes the valuation of owner-occupied residential property until it is transferred. In graphic terms, this bill narrows the tax base and piles it on the other classes of property via millage rate increases. Those most affected by the tax shift would be commercial properties, rental property, manufacturing property, and vehicles. The Board of Economic Advisors projects that in the fifth year of implementation, the tax shift required to make this legislation revenue neutral would increase taxes on commercial & rental property by $54.9 million, vehicles taxes by $31.8 million, manufacturing property by $29.4 million, and utilities by $22.7 million - with a total tax shift of $169 million.

H. 3264 does nothing to change the EFA/EIA millage drivers and will therefore not provide lasting relief to those who get relief under this bill. This will make economic recruitment of significant investment more difficult. It will shift significant additional burden to those who cannot afford a home but rent and own a car. This bill is also of questionable constitutional validity- the main legal concern being a violation of the equal protection clause of the US Constitution.

Please contact the members of the Ways & Means Committee and ask them to send H. 3264 back to subcommittee in favor of a systemic approach to property tax restructuring which will make a meaningful positive change. A roster of the House Ways & Means Committee is attached. For additional information on SCAC’s position on property tax restructuring see the Policy Positions for the 2005 Session of the SC General Assembly.

A House Ways & Means subcommittee will consider H. 3350 on Wednesday, March 9 at 9:00 in Room 501 of the Blatt Building. This legislation would allow a municipal governing body to enact by ordinance, subject to a referendum, a capital projects sales tax.

Some of the problems inherent in this legislation are:

• One of the arguments which gets the most attention against the various property tax plans which use sales tax revenue to reduce/replace property tax revenue is the numerous different local option sales taxes already authorized. This just makes the statewide answer to calls for property tax restructuring that much more difficult.

• The existing Capital Projects Sales Tax mandates equal numbers of county and municipal members on the project selection committee. H. 3350 allows the municipality to decide which projects would be funded with no voice for those citizens outside the municipality but pay sales taxes inside the city.

• Because city residents are unlikely to vote for additional sales taxes, it seems probable that a county which wanted to implement the Capital Project Sales Tax would be foreclosed from this revenue source should this bill pass.

PLEASE CONTACT THE MEMBERS OF THE SUBCOMMITTEE ASTERISKED ON THE ATTACHED WAYS & MEANS COMMITTEE ROSTER AND ASK THAT THEY VOTE AGAINST H.3350 OR AT LEAST WAIT UNTIL THE PROPERTY TAX RESTRUCTURING PLANS INVOLVING SALES TAX REVENUE CAN BE CONSIDERED.

A. Probate Judge Qualifications - H. 3084. This bill passed the House and is now in the Senate.

B. Seatbelts - S. 1. After significant debate over the merits of the bill and the $25 penalty, the legislation was recommitted to the Education and Public Works Committee. The Committee amendment to this bill redirected the $25 fine to the state Amber Alert program instead of the host court’s jurisdiction.

C. Mental Health Admissions and Protective Custody - H. 3412. The House 3M Committee gave a favorable report to H. 3412. The bill allows a law enforcement officer to take a person into protective custody if the officer reasonably believes that the person is mentally ill or is suffering from chemical dependency. The bill also contains a number of measures to combat the service delivery problems for the mentally ill which recently led to warehousing in public hospitals.

D. Mortgage Satisfaction - H. 3454. A House Judiciary subcommittee gave a favorable report to H. 3454. The bill, relating to methods of entering a mortgage satisfaction, provides for the contents of the affidavit that an attorney is permitted to file in regard to a mortgage which he has satisfied.

E. WET Test - S. 326. A House Agriculture subcommittee adjourned debate on S. 326 until next Tuesday before the full Committee meeting. The bill provides that the provisions of the Aquatic Life Protection Act do not apply to any permit applicant or existing permittee so long as the permittee or permit applicant notifies DHEC in writing that it is opting out of this act.

F. Veteran Organization Property Tax Exemption - S. 205. S. 205 adds the Marine Corps League to the list of veterans organizations exempt from property tax. A Finance subcommittee reported S. 205 out favorably.

G. Air Carrier Hubs - H. 3234. Currently the state may issue General Obligation Bonds for the infrastructure needs of air carrier hub terminal facilities which meet certain criteria. H.3234 will allow the state to issue GO bonds for facilities that will use two or more specially equipped planes that are used for the transportation of specialized cargo. A Finance subcommittee reported this bill out favorably this week.

H. Property Tax Monthly Installments - S. 363 & H. 3305. S. 363 expands the existing authorization for counties to accept quarterly payments in advance of property taxes to allow monthly payments in advance of property taxes. S. 363 was reported out favorably by a Finance subcommittee. H. 3305 is similar and was given a favorable report by a House Ways & Means subcommittee this week as well.

I. Motion Picture Incentive Act - H. 3152. H. 3152 cleans up language from last year’s motion picture incentive act. It also extends the existing sales tax exemption for machinery and supplies used in motion picture filming to local sales taxes. This has an anticipated local government fiscal impact of $66,000.

J. Smoking in Public Buildings - S. 351. A Medical Affairs subcommittee reported S. 351 out favorably this week. The bill would delete exceptions to the Clean Indoor Air Act, including the exemption which allows smoking in enclosed private offices and designated areas of employee break areas of government owned buildings.

K. DD-214 Removal from Public Record - H. 3257. This bill allows a veteran to remove his DD-214 form from the public files by paying a $10 fee to the clerk of court and making the request. H. 3257 received a favorable report from a House Judiciary subcommittee.

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. 3655 - Requires law enforcement agencies to adopt policies discouraging racial profiling and to collect information to determine if traffic and pedestrian stops are race-based.

H. 3656 - Enacts the SC Clean Elections Act.

H. 3657 - Enacts the Innocence Protection Act and provides that a person in custody after conviction may apply to the court for certain forensic DNA testing.

H. 3661 - Constitutional amendment permitting the General Assembly to establish a procedure by which a candidate for elective office may finance his campaign with public funds.

H. 3664 - Increases the state sales tax by 2.5% and requires a referendum in counties in which the local o