This is the last week of the 2008 session of the General Assembly, and there are quite a few bills of interest to county officials up in the air. There is not time to delay in contacting your House and Senate members about legislation that affects the county. At 5 p.m. on Thursday, the General Assembly will adjourn for the year, and bills that do not pass will have to start over again.

In the House, there were a number of contentious votes; and voting on amendments, vetoes and other matters has become even less predictable than usual. This became evident in the voting on the Governor’s budget vetoes Thursday, when several vetoes which were widely expected to be overridden were instead sustained.

In the Senate, next week will be very chaotic with amendments being added to bills out of the blue, bills that were on the contested calendar passing without warning, and bills that were sailing through just stopping on a moment's notice.

Another contact just to reconfirm and shore up earlier conversations would be in order.

 1.

Critical Contact Issues for the Week of June 3

1. Jail Quota Elimination Proviso - Veto #40. The Governor has again vetoed the proviso (51.32) which prohibits the Department of Corrections (DOC) from imposing a quota on the number of sentenced state inmates it accepts from the county jail. The Governor did not veto the $1.967 million appropriated to fund DOC’s reception and evaluation facility. Every member of the House and Senate needs to be contacted before Tuesday. Ask them to override Veto #40; and explain that DOC’s quota policy creates serious overcrowding problems at the county jail, jails are not equipped to handle long-term prisoners, and that this also shifts medical costs to the local jails. DOC offered not one word of concern about either the proviso or the level of funding for this item during the budget process in the House or the Senate. The House will likely resume taking up vetoes on Tuesday. Just because this veto was overridden last year, does not mean that it will be again this year. This is far from a done deal.
    

2. H. 4355 Becomes a Sales Tax Mini BAT Bill. The Senate amended this bill several times and gave it second reading. H. 4355 will return to the House for concurrence or non-concurrence, once it receives third reading next week. The Senate amendments: allow a county to vote to exempt food from a local option sales tax, instead of requiring all local option sales taxes adopted in the future to exempt food; allow counties with an existing capital projects sales tax to have a referendum to renew it at a time other than the general election every two years; allow the capital projects sales tax to be used to acquire land for conservation, blight remediation, and to protect military bases; and allow local accommodations and hospitality taxes to be used to issue bonds for the list of permitted projects. House members need to be contacted to ask them to concur in the Senate amendments; and Senators need to be asked to insist on their amendments, if the House does not concur.
    

3. Charitable Property Tax Exemption Expansion - H. 3008. This bill allows a charitable entity to hold real property for future use in a property tax exempt status for three years. The Senate amended H. 3008 to delete a provision to give all warehouse facilities the 6 percent assessment ratio and other provisions which came over from the House, but were passed last year in other bills. H. 3008 is pending third reading in the Senate. The House version of H. 3008 contains a provision to drop the assessment ratio on all warehouses from 10.5 percent to 6 percent, which would have a fiscal impact of over $12 million. Contact your House member, and ask that they concur in the Senate amendments, if and when H. 3008 returns to the House.

Sprinkler Installation Property Tax Credit — H. 4470

The Senate Finance Committee reported H. 4470 out, and it has passed the Senate. The Senate version of this bill allows a county to grant a property tax credit equal to 25 percent of the cost of installing a fire sprinkler system. For those taxpayers who receive a property tax credit, they will also get a state income tax credit equal to 25 percent of the installation cost of the sprinkler system. There are no caps on the amount of the cost of the sprinkler system. Water tap and maintenance fees for sprinklers are capped at actual costs.

The House version of H. 4470 offers an income tax credit for the installation of a commercial or residential fire sprinkler system; a prohibition on municipalities or special service districts from charging more than the actual cost of any separate water line installed solely in support of a fire sprinkler system; an exemption of sprinkler systems from state sales tax; a five-year county and city operating property tax exemption on the value of a sprinkler system installed or upgraded in facilities built before July 1, 2008; and the full depreciation, at 20 percent per year, of the value of a sprinkler system.

Evidence Warehousing — S. 429 and S. 890

S. 429 deals only with the Innocence Project program to allow post-conviction DNA testing for crimes involving death or first degree burglary. This will require clerks of court and sheriffs to retain evidence in these cases for much longer periods of time. S. 429 was recalled to the House floor, where it is pending second reading.

S. 890, the DNA sampling bill, was also amended with the contents of S. 429.

The Budget Division has made a request of the Fiscal Impact Statement Team for the local cost of the evidence warehousing provisions. Please check to see if your county has received this request and responded.

School/Higher Ed Capital Projects Sales Tax — S. 1232

As passed by the Senate, S. 1232 would allow a local option sales tax to be imposed for school capital projects for up to 15 years in all counties of the state. The tax may be imposed in the county upon the adoption of a resolution by the school district board and a favorable referendum result. The House amended the bill to apply only in a county that generated $7 million or more in state accommodations tax. The revenues may be shared with higher education for capital improvements on campuses. The Senate concurred in the House amendment, and it has been enrolled for ratification.

ATI/Point of Sale — H. 4942

SCAC has taken no position on H. 4942, because there were counties for the bill and others against the bill. If your county has input on H. 4942, you should contact the members of the Senate directly. H. 4942 is pending second reading on the contested Senate calendar.

The Finance Committee amendment, which is pending consideration in the Senate, suspends implementation of assessable transfers of interest (ATI) for one year.

The House-passed version of H. 4942 delays recognition of an ATI until the year of reassessment. The delay in recognizing an ATI until the year of reassessment would mean that after the sale of a property which received the benefit of the 15 percent cap on assessed value increases, the tax value would not reflect the fair market value until reassessment was implemented. Because of the rollback millage calculation in a reassessment year, the rollback millage may wash out the growth in the tax base resulting from an ATI triggering the jump to fair market valuation of a property.

The BEA has informally said the fiscal impact of the amendment would still be $44 million for that one-year suspension of the ATI mechanism, which is the same as the first year impact of the bill as passed by the House.

Taxation and Finance Bills

1. Reassessment Delay - H. 3975. This bill allows a county to postpone reassessment for one additional year. H. 3975 was given second reading and is pending third reading in the Senate.
    

2. Rent to Own 4 Percent Legal Residence Assessment Ratio - S. 1313. This bill was recalled from committee to the House calendar and is pending second reading. S. 1313 allows a person who acquires an equitable interest in property through a bond for title, lease-purchase agreement, contract for sale, or other type of contractual agreement to qualify for the 4 percent assessment ratio—as long as the person claims the property as their legal residence and is responsible for taxes on the property in question. S. 1313 also allows a single-member LLC—where the single member is an individual that is not taxed for income tax purposes as a corporation—to qualify for the 4 percent assessment ratio, if they meet all the other criteria.
    

3. Attorney Fees for Ag Tax Appeals - H. 4499. The Senate Finance Committee reported this bill favorably with an amendment to impose a standard for awarding attorney fees in ag use valuation appeals on the initial determination decision and decisions to revoke the ag use valuation similar to those in S. 490. Debate on H. 4499 was carried over, when a senator said he wanted to ask his constituent about the committee amendment. H. 4499 is pending second reading on the uncontested calendar.
    

4. Residential Improvement Districts (RIDs) - H. 4745. This bill is based upon the county improvement districts in Chapter 35 of Title 4, expanding upon that authorization which allows assessments to finance public infrastructure and improvements. H. 4745 is pending third reading in the Senate.
    

5. Mothballed Plants Bill Becomes a Ball of Amendments - S. 1171. The Senate  took up the House-passed version of S. 1171, amended the bill and returned the bill to the House—where the House may concur in the Senate amendments or insist on their version of the bill and force a conference committee. Both versions of the bill exempt from property tax for four years manufacturing equipment in a plant that has been shuttered during the entire property tax year and drop the assessment ratio on manufacturing warehouse space from 10.5  percent to 6  percent, when it is used exclusively for warehousing and is separate from other areas of the plant. The Senate added language to include the contents of S. 865, which requires a tax bill to reflect the estimated value of the school operating expense homestead exemption. The bill was also amended to authorize a county, by ordinance, to change the amount of time a boat must be located in South Carolina to become taxable to 180 days in the aggregate. The Textile Communities Revitalization Act is also in S. 1171.
    

6. Textile Communities Revitalization Act - H. 4950. This bill significantly redefines what is an eligible site for incentives under this act to accommodate larger mills which may have to be demolished and redeveloped, rather than rehabilitated. The proponents mentioned specific projects in York and Greenville Counties. The Senate adopted the committee amendment; and H. 4950 then became bogged down on the contested calendar pending second reading, when an amendment to earmark vehicle sales taxes for roadwork was proposed and ruled out of order.
    

7. Affordable Housing TIFs - H. 4743. This bill allows publicly- and privately-owned affordable housing to be the focus of a tax increment financing (TIF) district. H. 4743 is pending third reading in the Senate.
    

8. Realtor Business Licenses - H. 4554. H. 4554 is intended to clarify where realtor business income is taxed for business license purposes and to avoid multiple taxation of that income. In the Senate version, credit is given to the jurisdiction where the sale occurs, when the sale is reported to the broker- in-charge office in another jurisdiction from the jurisdiction where the sale occurred. The Senate passed H. 4554, and it now goes back to the House for concurrence or further House amendments.
    

9. Proviso Codification and Flood Codes - S. 530. This bill codifies numerous provisos which have been in the budget act for several years. The House amended the bill this week to add several other older provisos which had been ruled out of order in the Senate. Additionally, the House added a new section which states that coastal counties and municipalities may adopt, by reference or otherwise, the provisions in the 2006 International Residential Code (IRC) necessary to prevent properties insured by the National Flood Insurance Program (NIFP) from being retrograded to a lower class for purposes of the flood insurance premium discounts allowed jurisdictions participating in the NFIP's community rating system. The bill is in the House, pending concurrence with Senate amendments.

Infrastructure and Transportation 

1. Stormwater Fees - H. 4337. This bill has been placed on the Senate contested calendar after receiving objections from Sens. Cleary and Fair. These fees support mandated stormwater and sediment control programs. Please thank the Senators for their support.
    

2. Removal of Roads from the State System  - S. 981. This bill is pending second reading on the contested House calendar. S. 981 gives DOT more options in the transfer of roads (current law requires a state-local swap). A county must agree to any road transfer, so control remains at the local level. The committee amendment pending includes the provisions of H. 4549 to earmark the sales tax on vehicles for road paving.
    

3. Public Ferry Systems - S. 996. This bill would set up a framework for county operation of public ferries. The Senate concurred in House amendments, and S. 996 is now R. 305 awaiting the Governor's action.
    

4. Water District Sewer Service - H. 3030. This bill would allow certain rural water districts to construct and operate sewage systems within the district. H. 3030 was amended with a provision which states that a COG has no authority to determine which entities may or may not provide water and sewer service in their territory. This may affect the COGs' role in Clean Water Act permitting. H. 3030 is pending third reading on the contested Senate calendar.

General Government Operations and Structure

1. Jail Recodification - S. 590. This bill is the Local Detention Committee project to update the code of laws relating to local jails to reflect current practice, court cases and delete obsolete code provisions. S. 590 is a victim of the cancellation of the House Judiciary Committee meeting, when the House stayed in session all day Tuesday and Wednesday. Recall from House Judiciary Committee to the floor was made impossible by one member saying he would object to any motion to recall it from committee. Later, an amendment being considered surfaced that would shift the respon-sibility for medical expenses from the pre-trial inmate to the county. SCAC will now oppose the recall of S. 590 from committee to prevent consideration of that amendment.
    

2. Firefighter Background Checks - H. 5009. This bill provides that no person may volunteer, be hired as a firefighter or perform firefighting duties who has been convicted of, pled guilty, or pled nolo contendere to arson. The Senate amended the bill to restrict consideration of a conviction or plea to 10 years. The bill now heads back to the House for consideration of the amendment.
    

3. Victim Services Certification - H. 4601. H. 4601 requires 15 hours for initial certification and 12 hours annually in continuing education. The Senate Judiciary Committee amended the bill to allow an entity to require an individual to receive additional training, if the person or entity wants more training. The bill has a Jan. 1, 2009 effective date. The House concurred with the Senate amendment, and H. 4601 has been enrolled for ratification.
    

4. EMT Background Check - H. 4334 and S. 297. This bill requires a criminal background check before employment as an EMT or upon renewal of an EMT license. H. 4334 was amended on the Senate floor to require DHEC to treat records on persons regarding sexually transmitted diseases as confidential with certain exceptions for medical purposes. The House non-concurred with the Senate amendments and sent H. 4334 back to the Senate. The Senate may insist on its amendment and force a conference committee or agree to the House version of H. 4334. The House adjourned debate on the Senate companion bill, S. 297. 
    

5. Ballots - S. 913. This bill removes obsolete language regarding paper bal-lots. The House amended the bill to require that a candidate nominated by multiple parties must have his name listed only once on the ballot and passed the bill. The Senate amended S. 913 to remove the multiple party amendment, and it returned to the House for consideration of the Senate amendment.

1. Family Court Privacy Act - S. 584. This bill seals the financial declaration filed in the family court, unless a court order is obtained or the requester is a party to or an attorney in the action. The House Judiciary Committee meeting was cancelled on Tuesday and again on Wednesday, because the House stayed in session both days. S. 584 is dead, unless it gets unanimous consent to be recalled to the House floor.
    

2. Child Support Garnishment/Centralized Collection - H. 3478. H. 3478 would allow a judge to order wage garnishment, if the person is at least three months in arrears on child support. The Senate amended H. 4378 to create a statewide centralized system for child support collection by 2010, as is mandated by the federal government. The Senate gave the bill third reading, and it now heads back to the House for consideration of the Senate amendment.
    

3. Attorney Fees in Government Initiated Actions - S. 490. This bill puts a set of criteria in the existing statute allowing the award of attorneys’ fees in actions initiated by the state or a political subdivision, or action contesting a state action, and requires specific findings to be made by the court. The House amendment also allows parties an additional 120 days to serve a defendant in civil suits with the payment of an additional fee and addresses payment of attorney fees for the Layman/TERI suit. The House passed the bill, and it is now in the Senate for consideration of the House amendment.
    

4. Grand Jurors - H. 4694. This bill would prohibit any person who is currently charged in a state or federal court with a criminal offense that carries a maximum penalty of one year or more from serving on a state grand jury. The bill was not reached in the Senate Judiciary Committee and is dead, unless it is recalled to the Senate floor.
    

5. Deed Recording Fee Exemption - H. 4067. This bill would exempt from deed recording fees real property deed transfers from a trust to a trust beneficiary. The bill is currently awaiting third reading in the Senate.
    

6. Protective Orders - H. 4312. This bill provides that a protective order established by reason of incapacity other than age does not automatically terminate upon the incapacitated person reaching the age of majority. The Senate amended H. 4312 with a health care power of attorney change, and it has returned to the House for consideration of that amendment.
    

7. Judicial Enhancement - H. 3934. This bill makes several changes to the judicial system, including requiring the Clerk of Court to report all grand jury indictments that return a true bill to court administration, along with the name of the defendant and the offense charged. The Senate Judiciary Committee only took up the new DPS appointment during its meeting, and H. 3934 is dead as a result.
    

8. Expungement - S. 110. S. 110 codifies a court order issued by the Chief Justice regarding expungement. A House Judiciary subcommittee amended this bill to require cases handled by magistrates to be expunged at the magistrate court level, rather than by the solicitor. S. 110 is pending second reading on the House calendar.
    

9. School Resource Officers - S. 1221. This bill, which deals with the rules of civil procedure in magistrates court, was amended on the House floor to authorize a school resource officer to issue a courtesy summons to a student arrested for a misdemeanor offense, and a bond hearing must be held for the student in magistrate court within 24 hours of the student's arrest. The Senate concurred in the House amendment, and S. 1221 has been enrolled for ratification.

Immigration — H. 4400

The Senate gave third reading to H. 4400, and the House concurred in the Senate amendments to the bill. H. 4400 removed the state preemption language against local immigration ordinances that exceed state law that was contained in previous versions of the immigration bill. It also authorizes LLR to issue an employment license to private employers, in addition to any business licenses required by local government, and requires private employers to verify the legal status of new employees. Failure to comply may result in a civil penalty of up to $1,000 per violation and the revocation of any business license, including a local business license. All fines collected are retained by LLR.

Businesses that provide immigration services are required to obtain a license issued by LLR in addition to any local government business license requirements. Failure to comply with this requirement may result in a civil penalty of up to $1,000 per violation and the revocation of any business license, including a local business license. This fine does not preempt or preclude additional civil and criminal penalties to include restitution to the political subdivision. Additionally, if the person or entity is convicted of criminal activity in providing immigration services, they are jointly and severally liable for any loss suffered by an agency or political subdivision of the state. H. 4400 has now been enrolled for ratification.

HOUSE BILLS

H. 5221 - Provides that any person or organization that creates a gun-free zone is liable for damages for criminal conduct occurring in a gun-free zone, if a reasonable person would believe that a firearm could have helped the person defend themself in the gun-free zone from the criminal conduct. A court may order treble damages under certain circumstances.

SENATE BILLS

S. 1423 - Creates the Office of Professional Standards under the Law Enforcement Training Council to investigate and hear complaints against law enforcement officers and to determine necessary actions to be taken.

S. 1429 - Authorizes a special purpose district providing medical services, such as a hospital or a care facility, in a county that collects more than $14 million in accommodations taxes to take out a mortgage to secure its bonds or loans to a federal agency or guarantee if the federal agency will guarantee the loan.

RATIFICATION OF ACTS

The following bills were passed by both chambers and are awaiting action by the Governor:

(R. 271) S. 642 - Defines a financial institution that holds the uninsured funds on deposit of a local government entity and the state as a qualified public depository, allows the depository to secure those funds using the dedicated method or the pooling method, and authorizes the local government entity or state treasurer to require the depository to use the dedicated method.

(R. 282) S. 638 - Provides a procedure for local governments to have an invocation, and requires the Attorney General to defend any public body in a challenge to the constitutionality of the act.

(R. 293) H. 4800 - Enacts the state budget for the fiscal year beginning July 1, 2008.

(R. 294) H. 4801 - Enacts appropriations for the capital reserve fund for FY 2007-08.

(R. 295) H. 4876 - Amends provisions of the state retirement system laws to comply with IRS requirements regarding employee benefits, employer contributions and other related matters pertaining to participating in the system—as well as procedures for the system—and eliminates the application of SC Regs. 19-900 through 19-997 to the operation of Title 9.

(R. 300) S. 463 - Provides a constitutional amendment to allow investment of OPEB funds in the stock market, and authorizes a trust of more than one county to invest in the stock market.

(R. 305) S. 996 - Creates a framework for county operation of public ferries.

(R. 313) S. 1182 - Creates a study committee to look at the feasibility and benefits of the construction, operation and maintenance of transportation infrastructure using pub-lic-private partnerships and ventures.

(R. 314) S. 1221 - Provides that a student arrested for a misdemeanor by a school resource officer may receive a courtesy summons by the resource officer and must have a bond hearing within 24 hours of arrest.

(R. 321) S. 3326 - Requires an entity which hires a law enforcement officer from another entity within two years of completing mandatory training to reimburse the other entity for all training costs. For those hired within one year, reimbursement is 100 percent of the costs; and it is 50 percent of the costs, if hired after one year but before the completion of the second year of service.

(R. 324) S. 4065 - Adds the word "general" before "personal representatives" to help expedite appointment of a personal representative in formal proceedings in Probate Court.

(R. 325) S. 4229 - Requires the jury lists for municipal court to be prepared from the electronic file of persons holding a valid state driver's license or identification card to be furnished by the State Election Commission.

(R. 327) S. 4400 - Enacts the South Carolina Illegal Immigration Reform Act.

(R. 329) S. 4601 - Requires 15 hours for initial certification and 12 hours annually in continuing education for victim services certification, and allows additional training if the person or entity wants more training.

(R. 331) S. 4713 - Reduces the resident requirement in this state to receive a plot in a state veterans' cemetery from 20 years to 5 years.