Issue 22-06
June 30, 2006

This is the final Friday Report of the year. The General Assembly has adjourned sine die marking the end of the two year session. Many thanks to all of you who contacted your legislators throughout the year. The successes achieved this year would not have been possible if it were not for the contacts you made either in person, by phone, via email, through council resolutions, or by old fashioned - but effective - personal letters and notes. There were many important pieces of legislation passed this year that will have a significant impact on counties. In the meantime, we ask that you continue to build communications and relationships with members of the General Assembly, both veterans and new members in preparation for next year.

 1.

Property Tax Restructuring  - H. 4449 & H. 4450

H. 4449 (R.417), the statutory portion of the property tax restructuring legislation, was signed into law on June 10. H. 4449  provides the statutory implementation of the constitutional changes made in H. 4450 (R.418). The constitutional changes will be voted on in the November referendum and the General Assembly must then ratify a positive result before the constitution is amended. Those changes would become effective in 2007. Most of the statutory provisions in H. 4449 become effective either January 1, 2007 or upon ratification of the constitutional provisions in H. 4450. Please see the June 14th Technical Bulletin that provides an in-depth overview of H. 4449 and H. 4450. Please refer to the bulletin or feel free to contact the staff if you have questions or would like additional research.
A workshop on this year’s property tax restructuring legislation will be held on Friday, August 4th at the Annual Conference.

 2.

Eminent Domain / Regulatory Takings - S.1029, S. 1030 & H. 4503

Three eminent domain bills were worked out in conference committee but only two were passed by both houses and ratified. S. 1029, a bill that establishes a study committee to examine eminent domain and regulatory takings, and S. 1031, a constitutional amendment addressing eminent domain concerns from the Kelo case, were ratified.

H. 4503, on the other hand, did not pass. The House tried unsuccessfully twice to get free conference powers to adopt the conference report addressing eminent domain statutory provisions. Therefore, since this bill died in the final minutes of the session it is sure to be introduced next year as it was this year, combining both eminent domain and regulatory takings provisions.

Big Annual Tax (BAT) Bill - S. 1245

The BAT bill was ratified on June 7 and vetoed by the Governor on June 13. The Governor’s veto was then overridden by the General Assembly on June 14. Sections 49 and 50 of S. 1245 (R.389) require a county council to affirmatively adopt an ordinance to implement any reassessment and equalization program scheduled for 2006. Absent adoption of an ordinance, implementation is delayed until 2007. Ordinarily, an ordinance is required to delay implementation and this reversal of the requirement is effective only for this year. See the June 8th Technical Bulletin detailing the ordinance requirement for reassessment implementation.

Other items of interest in S. 1245 (R.389) include a lien holder notification process for mobile homes and manufactured housing which has been in the works for several years; a provision defining property tax situs for boats; the transfer of duties from the Comptroller General to DOR formerly in H. 4504, and a provision to authorize a county to reduce the assessment ratio on certain boats from 10.5% to 6%.

Law Enforcement Training Council - H. 3977 (R.311)

H. 3977 was vetoed by the Governor but the veto was overridden on May 30, 2006, the date considered to be the effective date for the legislation. The Act transfers all duties from the South Carolina Criminal Justice Academy Division of the Department of Public Safety Academy to the South Carolina Law Enforcement Training Council. The Council created by this Act provides for 11 members, 6 ex officio and 5 appointed by the Governor. Sheriffs and detention center directors are included in the 5 members appointed by the Governor. The Attorney General’s office issued an opinion on June 5 concluding that the 6 ex officio members may meet prior to when the 5 appointed members begin serving on January 1, 2007.
 

Bills That Didn’t Pass

A. Common Law Marriage - H. 3588. H. 3588 was recommitted to Committee in the Senate, killing it for this year. The bill provided that common law marriages would no longer be recognized if the common law marriage is established after January 1, 2008.

B. Traffic Ticket PTI Program - H. 3343. This bill to divert traffic offenses from magistrates court passed the House and was sent to the Senate, where it died. The bill takes all of the revenue from these offenses away from the county or city and gives it to the solicitor to run the educational or public service program. The end result is another reduction in court generated revenue to support court operations.

C. ID Theft & SSN Handling Procedures - S. 518. S.518 passed the Senate and was referred to the House LCI committee, where it died. The bill in part, gives an individual the right to request removal of any numbers for social security, drivers license, state ID, passport, checking account, savings account, credit card, debit card number or PIN code from an image or copy of an official record available on the internet. It is extremely likely that this bill or similar legislation will be introduced again next year.

D. Bond Referenda & Election Standardization - H. 4579. This legislation which would have allowed elections and referenda only on the first Tuesday after the first Monday in November passed the House and died in the Senate.

Newly-Introduced Legislation

RATIFICATION OF ACTS

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

(R.386), S. 572 - Provides that the SC Procurement Code supercedes any other conflicting law, and also provides various other changes to the Procurement Code.

(R.388), S. 1138 - Revises the penalties relating to criminal sexual conduct with a minor and provides for the imposition of the death penalty for certain repeat offenders.

(R.389), S. 1245 - “Big Annual Tax Bill,” contains a provision requiring an ordinance to implement a 2006 reassessment and equalization plan.

(R.390), S. 1261 - Provides that SLED must issue a permit to carry a concealable weapon to a resident or qualified non-resident upon proper application.

(R.393), H. 3051 - Defines counterfeit mark and establishes felonies for the use of, trafficking in and production of a counterfeit mark.

(R.397), H. 3166 - Requires the nomination of a substitute candidate by a political party’s executive committee within 30 days from the date the candidacy becomes vacant, or the party will be prohibited from nominating a candidate for that office.

(R.404), H. 3726 - Exempts ATV’s from property taxes and provides for their regulation.

(R.407), H. 3831 - Provides for the use of an alternate polling place in an election held during an emergency situation.

(R.412), H. 4301 - Authorizes the use of deadly force against an intruder or attacker in a person’s dwelling, residence or occupied vehicle under certain circumstances.

(R.414), H. 4410 - Relating to representation by a public official, member, or employee before a governmental entity, so as to provide for notice of a conflict of interest and recusal rather than the resignation of the public official.

(R.416), H. 4426 - Provides that when an entity exempt from property taxes as a nonprofit corporation funded by federal or state loans or as a religious, charitable, eleemosynary, educational, or literacy organization leases property owned by it to a similarly property tax exempt organization, the leased portion is exempt from property tax.

(R.417), H. 4449- Statutory implementation of property tax restructuring.

(R.418), H. 4450 - Constitutional amendment providing for property tax restructuring.

(R.420), H. 4471- Requires that if a court orders a tenant in a commercial lease to pay all rent due, the tenant must add a 3% administrative fee if the rent is to be paid through the magistrate’s office.

(R.424), H. 4678 - Provides that a law enforcement agency, church or synagogue is a “safe haven” for parents who voluntarily leave their infants and are granted immunity under certain circumstances.

(R.429), H. 4737 - Provides that federal or state income tax credits for low housing may not be considered for property tax assessment purposes.

(R.433), H. 4812 - General Appropriations Bill.

(R.437), H. 4874 - Enacts the Economic Development Incentive Act, providing various tax incentives for manufacturing facilities.

(R.443), S. 1044 - Permits a county treasurer to accept a lesser amount than an original tax bill together with any applicable penalties, costs, and charges whenever a bankruptcy proceeding authorizes a lesser amount to be paid, also permits a county auditor to negotiate taxes as a result of a bankruptcy.

(R.446), S. 1162 - Prohibits counties and municipalities from charging a permit fee or require a permit for a wheelchair ramp built with medicare or medicaid funds if the construction is performed, overseen, or inspected by an American with Disabilities Act inspector.

(R.447), S. 1267 - Enacts the Sex Offender Accountability and Protection of Minors Act of 2006, providing for the imposition of the death penalty for repeat offenders under certain circumstances.

(R.449), S. 1427 - Revises the conditions and requirements under which a special purpose district may be dissolved.

(R.452), S. 1029 - Joint resolution creating an Eminent Domain Study Committee to review the condemnation authority of all entities that possess the power of eminent domain, the effect of governmental policy on the value and ownership of private property and the need for revision of current slum clearance and redevelopment uses of eminent domain.

(R.453), S. 1031 - Constitutional amendment providing that private property must not be condemned by eminent domain for any purpose or benefit unless the condemnation is for public use.

(R.455), H. 4735 - Increases from 15 to 30 days the time in which the mental health evaluation of a person must be completed to determine if he is fit to stand trial.