Issue 16-05
April 29, 2005

It was a strange week in the General Assembly.  The Senate finished the budget in two days and many House members were distracted by activity surrounding the Speaker’s nomination as ambassador to Canada.  All of this was layered on top of the usual push to get bills over to the second chamber to beat the May 1 deadline.  After this week a House bill will have to receive a two thirds vote to be taken up in the Senate and vice versa.

Proviso 1A.58 - EIA Local Match Requirement. This proviso suspends EIA local match requirement for this fiscal year. The House adopted this proviso, but the Senate did not.

Proviso 27.29 - Economic Development. This House adopted proviso 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. The Senate did not adopt this proviso.

Proviso 30.17 - Judiciary Courthouse Security. The House adopted this proviso which authorized 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. This proviso was not adopted by the Senate.

Proviso 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. This proviso is in both versions of the budget.

Proviso 56DD.42 - SLED Courthouse Security. This House adopted proviso authorizes 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. The Senate did not adopt this proviso.

Proviso 63.45 - Law Enforcement Personnel Salary Review. This House adopted proviso directed 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. This proviso is not in the Senate version of the budget.

Proviso 72.112 - Use of Accommodations Tax Revenue. This House passed 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. The proviso is not in the Senate version of the budget. The Senate did appropriate $5 million to the fund in Proviso 73.18 which provides for the distribution of surplus money, should any exist.

Proviso 72.new - Courthouse Security Study Committee. The Senate adopted this proviso which creates a study committee to review, assess, and evaluate the current security of courthouses in South Carolina. The study committee shall make specific recommendations to the Governor and the General Assembly regarding changes in statutes and policies that would improve security in South Carolina's courthouses.

A. Municipal Capital Project Sales Tax Authorization - H. 3350. This bill authorizes municipalities to impose a one cent sales tax for capital projects. H. 3350 is on the contested House calendar pending second reading.

B. School District Capital Project Sales Tax Authorization - H. 3227. This bill authorizes all of the school districts in a county to impose a one cent sales tax for capital projects. The legislation does nothing to correct the most significant cause of spiraling school district operating costs - the EIA/EFA millage drivers. H. 3227 went back and forth between the contested and uncontested calendars this week. The bill is currently on the House uncontested calendar pending second reading in the status of interrupted debate.

A. No Yacht (or Camper) Left Behind Act - H. 3453. This legislation reduces the assessment ratio on boats with a galley and head from 10.5% to 6% in one fell swoop. The bill also caps the amount of property taxes due on a boat in one year to $1500. This bill therefore reduces the tax burden on persons fortunate enough to own expensive watercraft and shifts that burden onto all other taxpayers. The legislation has a fiscal impact of $5.5 million per year. The House added campers and trailers that qualify as a 2^nd home or residence qualifying for IRS deduction on interest. This will have an additional 2.2 million dollar fiscal impact on property taxes. These will also receive the 6% assessment. The measure is now in the Senate.

B. Sex Offender Registry - H. 3328. The House passed this bill after amending it to make numerous additional administrative changes and addressing the school registration situation which arose in Florida recently. This bill is now in the Senate and may be before a subcommittee next week. Rep. Brady was the spark which moved this bill through the House this week.

C. Common Law Marriage - H. 3588. H. 3588 has passed the House and is in the Senate calendar pending second reading. The bill prohibits the recognition of common law marriages. It prohibits the recognition of common law marriages after January 1, 2006. Earlier marriages are not impacted.

D. Uniform Trust Code - S. 422. A House Judiciary subcommittee gave a favorable report to S. 422. The bill provides a comprehensive recodification of existing trust law and supplements existing common law.

E. Indexing of the Homestead Exemption - H. 3301. Adjusts the amount of the homestead exemption in the same way that the federal income tax brackets are adjusted to reflect increases in the consumer price index. This bill passed the House and is in the Senate.

F. Bonding of County Officials - H. 3513 & S. 506. These bills allow counties to purchase a blanket fidelity bond for all or a portion of county officials or employees who are statutorily required to be bonded. The House version of S. 506 conforms to the Senate language and allows counties to purchase a blanket fidelity bond for all or a portion of county officials who are required to be bonded under statute. This bill is now in the Senate Judiciary Committee. The companion bill, S. 506, is in the House 3M Committee.

G. Nonpartisan County Elections - H. 3489. H. 3489 was probably killed for the year when the House adjourned debate on the bill until May 3^rd. The bill is pending second reading on the House contested calendar.

H. Casino Boats - H. 3694. This bill to allow local regulation of gambling boats was recalled from House Judiciary and ended up on the contested calendar pending second reading.

I. Casino Boats - S. 615. The Senate debated S. 615, the casino boat bill, on the Senate floor this week. The bill authorizes counties and municipalities to prohibit or regulate the operation of "cruise to nowhere" casino boats. Local governments could impose a surcharge of 10% on each casino boat ticket and a surcharge of up to 5% of the boat’s gross proceeds. These surcharges are payable to the local government from which the cruise originated. The Senate adopted the committee amendment, and various perfecting amendments but got bogged down in a filibuster on the bill. S. 615 remains on the Senate calendar in the status of interrupted debate.

J. Tax Credit for Rehabilitated Historic Structures - S. 140. S. 140 was recalled from Senate Finance and received second and third reading this week. The bill explains how tax credits earned by corporate entities are to be distributed to shareholders.

K. Expansion of Tax Increment Financing District Authority - H. 3724. This bill amends the TIF district authorization to make changes designed to make TIF’s more accessible for rural counties. It will allow a rural development zone to be less than 1000 acres and authorizes multi-county development plans. H. 3724 was amended to have the provisions apply to municipalities. It is now in the Senate.

L. Installment Payments of Real Property Taxes - H. 3305. This bill expands the existing authorization for counties to accept quarterly payments in advance of property taxes to allow monthly payments in advance of property taxes. The county can charge up to $2 per month for handling. H. 3305 passed the House and is in the Senate.

M. Real Estate Appraiser Board - H. 3796. This bill is intended to conform the Real Estate Appraiser Licensing Board to the Department of Labor, Licensing and Regulation model. It was given a favorable report as introduced and will be on the full House LCI Committee agenda next week.

Please contact Kathy Williams (kathy@scac.state.sc.us) at the SCAC Offices if you would like to receive a nomination form. Completed forms must be received by SCAC no later than Friday, May 20. The nominations will be processed by SCAC and forwarded to NACo for approval by incoming NACo President Bill Hansell after the NACo Annual Conference in July. Appointments will be announced in September.

Newly-Introduced Legislation

H. 3977 - Creates the Law Enforcement Training Council for the purpose of establishing a training program for law enforcement officers and persons employed in the criminal justice system..

H. 3984 - Criminal domestic violence bill, requiring magistrates, municipal, family, and circuit judges to receive continuing education training on issues regarding domestic violence.

H. 3986 - Deletes the requirement of an endorsement by the county auditor and assessor on a deed.

H. 3988 - Requires a derivation clause be included on a contract of sale or bond for title of real property before it is accepted for recording.

H. 3989 - Provides for the contents that must be contained in valuation notices sent to taxpayers regarding reassessment.

H. 3992 - Authorizes camera enforcement of red lights.

H. 4005 - Provides free college tuition to the children of wartime veterans who have also served in the military.

H. 4011 - 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.

SENATE BILLS  
 

S. 783 - Sen. Thomas sales tax for property tax swap bill.

S. 785 - Changes party primary dates from the second Tuesday in June to the first Tuesday in May.

S. 788 - Sen. Thomas sales tax for property tax swap bill.

S. 791 - Provides that upon the approval of the board of directors of the County Defender Corporation and the governing body of a county, a public defender and employees in the office of the public defender are deemed county employees.

S. 794 - Sen. Thomas sales tax for property tax swap bill.

S. 796 - Constitutional amendment eliminating property tax increases unless the property is transferred or improved.

S. 802 - Creates the Law Enforcement Training Council for the purpose of establishing a training program for law enforcement officers and persons employed in the criminal justice system.

Issue 15-05
April 22, 2005
 

The President’s speech and Rep. Lloyd’s funeral changed the usual schedule of business this week, hence, the early delivery of this week’s Friday Report.  The word is that the House will probably stay on the floor and work through a relatively lengthy calendar next week.  The Senate will tackle the budget.

This bill has been reported favorably by a subcommittee to the full House Judiciary Committee.  Rep. Walton McLeod voted no.  SCAC testified on the bill, but just as they did last year, the bill was moved to full committee.  Hopefully the full Judiciary Committee will dispose of the bill as it did last year by a substantial vote.  Please ask the members of the House Judiciary Committee to oppose this measure.

A. Probate Court Jurisdiction -- H. 3039.  H. 3039 has passed the House and is in the Senate.  The bill gives the probate courts concurrent jurisdiction with family courts to determine the validity of marriages and paternity.

B. Uniform Voting Machines -- H. 3347.  H. 3347 was carried over in the Senate on Wednesday and is still pending second reading on the Senate calendar.  The bill requires the State Election Commission to adopt one voting system to be used to conduct elections in this state.  The version of this bill pending consideration does not provide for a paper receipt of voting, which SCAC supports.

C. Common Law Marriage -- H. 3588.  H. 3588 has been placed on the contested House calendar pending second reading.  The bill prohibits the recognition of common law marriages.

D. Mental Health Admissions and Protective Custody -- 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 a 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.  H. 3412 has passed the House and is in the Senate.

E. BAT Bill -- H. 3768.  There are actually several Big Annual Tax Bills filled with miscellaneous provisions this year.  H. 3768 contains most of the tax provisions from last year’s BAT bill which the court invalidated in the Sloan suit.  H. 3768 has passed the House and is in the Senate.

F. BATMobile -- H. 3767.  This bill is called the BATMobile because it is the bill used as a vehicle to dump numerous technical and “noncontroversial substantive” changes into another BAT bill.  One change requires all governmental entities to require contractors to have an SC DOR sales license, another allows the register of deeds (ROD) to refuse to record a sham document, among numerous other provisions.  H. 3767 has passed the House and is in the Senate.

G. Nonpartisan County Elections -- H. 3489.  H. 3489 has been placed on the contested House calendar.  The bill permits counties to hold nonpartisan elections for any or all of the following county offices: council; auditor; treasurer; clerk of court; probate judge; sheriff; coroner; or register of deeds.  Nonpartisan elections for those county offices may be adopted by ordinance or referendum called by a petition of 5% of registered voters.

H. Jury Commissioners -- S. 578.  This legislation would allow “virtual” or computer presence of the jury commissioners at a drawing of a jury pool instead of physical presence.  S. 578 was given third reading in the Senate and is in the House.

I. Priority Investment Act -- H. 3881.  The amendments requested by SCAC that deleted the requirements that the priority investment element and the intergovernmental cooperation element be a condition precedent to the adoption of zoning were accepted by the full committee.  The bill received opposition from the realtors and was not moved out of committee.

J. Tobacco Fines -- S. 384.  The Senate gave third reading to S. 384 on Monday.  Fines are increased for tobacco age offenses.  The amendment provides that the fines must be deposited with the city or county treasurer and the treasurer must remit half of the fine to the State Treasurer.

K. Expansion of Tax Increment Financing District Authority -- H. 3724.  This bill amends the TIF district authorization to make changes designed to make TIFs more accessible for rural counties.  Specifically the bill would allow a rural development zone to potentially be less than 1000 acres and authorizes multi-county redevelopment plans.

L. Family Court Privacy Act -- S. 150.  The Senate gave third reading to an amended version of this bill on Thursday.  The bill provides that a financial declaration made a part of the record in the matter before the family court is confidential and not subject to disclosure.  The amendment lists the people that would be allowed access to a financial declaration upon request to the clerk of court.

M. Installment Payments of Real Property Taxes -- H. 3305.  This bill expands the existing authorization for counties to accept quarterly payments in advance of property taxes to allow monthly payments in advance of property taxes.  The Ways and Means Committee gave this a favorable report and it is pending second reading in the House.

N. Prisoner Workers’ Comp -- S. 557.  The Senate passed S. 557 and it is now in he House LCI Committee.  SCAC, MASC, and Corrections were able to come to an agreement to allow cities to provide worker’s compensation insurance for prisoners they borrow from the county or state to do work.  Designated facility prisoners would be insured by the borrowing entity, whether it is the county or city.

O. Eminent Domain -- H. 3636.  This bill passed a House Judiciary subcommittee with two recommended amendments.  The first would tie the interest rate to the prime as published in the New York Times on the date of the condemnation.  The second deleted a requirement that the clerks of court notify the condemnor in writing of amounts paid to the condemnee.  H 3636 will be on the next House Judiciary Committee agenda.

P. Bonding of County Officials -- H. 3513.  The House 3M committee gave a favorable report to H. 3513.  The bill allows counties to purchase a blanket fidelity bond for all or a portion of county officials or employees who are statutorily required to be bonded.  H. 3513 is now pending second reading on the House calendar.

Q. Bonding of County Officials -- S. 506.  The Senate gave third reading to S. 506 on Tuesday.  The bill allows counties to purchase a blanket fidelity bond for all or a portion of county officials or employees who are statutorily required to be bonded.  This is a companion bill to H. 3513.

R. Indexing of the Homestead Exemption -- H. 3301.  Adjusts the amount of the homestead exemption in the same way that the federal income tax brackets are adjusted to reflect increases in the consumer price index.

S. Correctional Officers’ Drivers Licenses -- S. 610.  The Senate gave third reading to S. 610 on Tuesday.  The bill provides that candidates for certification as local correctional officers may hold a valid current driver’s license issued by any state in the country.

T. Casino Boats -- H. 3694.  A House Judiciary subcommittee adjourned debate on an amended version of H. 3694.  Originally the bill banned all cruises to nowhere, but the bill was amended to the Senate’s version (S. 615), which delegates the authority to regulate casino boats to local government.  H. 3694 is expected to be considered again next week in subcommittee.

U. Casino Boats -- S. 615.  The Senate bill to delegate the authority to regulate casino boats is on the Senate contested calendar pending second reading and may not be reached for debate anytime soon.  If this is a matter of importance to your county, contacts need to be made with the members of the Senate.

Newly-Introduced Legislation

H. 3945 -- Requires the debtor to pay a collection fee to DOR when DOR makes a collection on behalf of a governmental entity.

H. 3967 -- Provides that a retailer who delivers tangible personal property into a county but who does not maintain a retail location there, does not have to collect and remit that county’s local sales and use tax.

SENATE BILLS

S. 775 -- Freezes property tax millage to the rate imposed for 2005.

S. 776 -- Provides property tax exemption for cars registered as an antique by DMV.
 

Issue 14-05
April 15, 2005
 

President Bush will address a Joint Assembly of the General Assembly on Monday so both chambers are planning to come in Monday and leave on Wednesday.  The Senate has delayed it’s floor debate for the budget until the week of April 25^th.  The House Ways and Means Committee has a meeting next week with a mammoth potential agenda of more than twenty bills.

PLEASE CONTINUE MAKING CONTACTS WITH THE MEMBERS OF THE HOUSE WAYS AND MEANS COMMITTEE AND URGE THEM TO REFER H. 3264, H. 3350, AND H. 3227 TO THE SUBCOMMITTEE WHICH WILL BE CONSIDERING A COMPREHENSIVE APPROACH TO PROPERTY TAX RESTRUCTURING.  SEVERAL MEMBERS OF THE COMMITTEE HAVE MENTIONED HEARING FROM HOME, BUT NOT EVERYONE HAS, SO CONTINUE MAKING CONTACTS.

The House Ways and Means Committee still has three bills pending an appearance on the full committee agenda.  It is very likely that they will be taken up at Monday’s committee meeting because of the May 1 deadline and the limited number of Ways and Means Committee meetings left in the session.  If these three bills are adopted, comprehensive reform of the property taxation system will be made much more difficult, if not impossible.  The three bills are:

H. 3264 -- Freezes the valuation for owner occupied residential property from time of purchase until it is sold.  This creates the illusion of property tax reform but fails to deliver real lasting change because it does not address the school millage drivers, shifts the property tax burden to other classes of property, and committee members may no longer feel the urgency to provide real restructuring and reform of the property tax system.  This approach also just shifts the property tax burden around to different taxpayers.

H. 3350 and H. 3227 -- These bills authorize additional local option sales taxes for capital projects -- H. 3350 for cities and H. 3227 for schools.  If these are allowed to pass prior to consideration of the numerous plans, many legislators will be unwilling to consider a sales tax for property tax swap of any kind because the potential maximum sales tax rate will be too high to remain competitive with North Carolina and Georgia.  This is to say nothing of the other concerns SCAC has with these bills.

SCAC has supported the replacement of school operating property tax revenue with sales tax or other state revenue for several years.  Almost every viable plan which makes real property tax restructuring and relief includes some or all of the replacement revenue from sales tax increases.

A House Ways and Means subcommittee passed H. 3453 out favorably this week.  The bill reduces the assessment ratio on boats with a galley and head from 10.5% to 6% in one fell swoop.  The bill also caps the amount of property taxes due on a boat in one year to $1500.  This bill therefore reduces the tax burden on persons fortunate enough to own expensive watercraft and shifts that burden onto all other taxpayers.  The legislation has a fiscal impact of $5,550,000 per year.

There was an attempt to add camper trailers to this bill, and there is a great potential for additional attempts for other classes of property being added to this bill in full committee or on the House floor.  H. 3453 will be on Monday’s House Ways and Means Committee agenda.

A Senate Judiciary subcommittee reported H. 3381 to the full Senate Judiciary committee.  They adopted the House Bill which of course enhances the chances for passage this year.  It will be on the agenda at the next meeting of the Judiciary Committee.  We will be submitting proposed amendments to the committee staff.  Sen. Hawkins of Spartanburg agreed with our position that a cost study was needed.  We will continue to pursue this request.  If you have a chance to meet with your Senator, please ask them to support our efforts to determine the impact of this legislation.  We need to know how the formula works and what the sign’s value is under the legislation.

H. 3881 was reported out of subcommittee with a proposed amendment to the full House Judiciary Committee.  The proposed amendment was requested by SCAC, and it deleted language that would have made the incorporation of the intergovernmental cooperation element and the priority investment element, in a comprehensive plan, a condition precedent to adopting zoning.

This bill would allow first time traffic ticket holders to enter an educational or public service program and avoid a fine or driving record points.  The Chief Justice made an appearance at the Senate Judiciary Committee and testified that the subcommittee version of this bill offends equal protection provisions of the constitution because it allows people in some areas to enter a diversion program but in other areas there may be no program available.  Justice Toal also stated that it curtailed prosecutorial discretion for the program to be operated by a city or county.  Some Committee members are now contemplating a mandatory creation of this program in the solicitors office.

Before carrying S. 262 over to next week’s meeting, the Judiciary Committee adopted an amendment suggested by DJJ and the Department of Probation Pardon and Parole Services intended to shield state agencies from losing assessment revenue which is typically generated by these tickets.  The bill allows a $140 fee to pay for the program and another $140 fee to go to the state agencies which receive court assessment revenue.  The amendment makes no provision for lost county or city base fine revenue to support court operations.  In fact, there is no fiscal impact statement for this proposal.  Further, there is no known figure for how many first time tickets were written last year, no actual figure for an average fine for first time tickets, or how much any of these education or public service programs might cost to operate.  These figures are necessary to develop a fiscal impact statement.

Please ask your Senator to send S. 262 back to subcommittee so that there can be some determination of how much court revenue is being affected, how to ensure that sufficient insurance coverage exists for public service program participants, and that a person can enter the program only one time.

S. 618 to change the retirement system is now in House Ways and Means Committee.  That bill will become the vehicle the Ways and Means Committee will amend with its very different plan.  There will most assuredly be a conference committee to work out these differences.

The House retirement subcommittee adopted an amendment to S. 618 and it will be on a House Ways and Means Committee agenda soon, if not next week.  The subcommittee amendment does the following things:

• increases employer contribution 0.5% on July 1, 2006 and another 0.5% on July 1, 2007

• increases employee contribution 0.5% on July 1, 2006

• requires current and future TERI employees and retirees returning to work under the earnings cap to pay the employee contribution beginning July 1, 2005

• eliminates the post-retirement earnings cap effective July 1, 2005

• guarantees (up to?) a 1% COLA for retirees

• allows the Budget and Control Board to grant all or any portion of the full COLA above the guaranteed 1% COLA

• allows not more than 60% of the investment portfolio to be in equities, instead of the current 40%

A. Probate Court Jurisdiction -- H. 3039.  The House Judiciary Committee gave a favorable report to H. 3039.  The bill gives the probate and family courts concurrent jurisdiction regarding matters to determine the validity of marriages and paternity.  H. 3039 is now pending second reading on the House calendar.

B. Uniform Voting Machines -- H. 3347.  H. 3347 is pending second reading on the Senate calendar.  The bill requires the State Election Commission to adopt one voting system to be used to conduct elections in this state.  The version of this bill pending consideration does not provide for a paper receipt of voting, which SCAC supports.

C. Common Law Marriage -- H. 3588.  The bill prohibits the recognition of common law marriages.  The House Judiciary gave a favorable report to H. 3588, and it is now pending second reading on the House calendar.

D. Mental Health Admissions and Protective Custody -- 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 a 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.

E. BAT Bill -- 3768.  There are actually several Big Annual Tax Bills filled with miscellaneous provisions this year.  H. 3768 contains most of the tax provisions from last year’s BAT bill which the court invalidated in the Sloan suit.  The Ways and Means Committee did delete the change in the minimum investment necessary to use the net present value method of calculating fee in lieu of tax payments (which creates level payments for the life of the FILOT agreement) from $45 million to $100 million.  H. 3768 is pending second reading on the House calendar.

F. BATMobile -- H. 3767.  This bill is called the BATMobile because it is the bill used as a vehicle to dump numerous technical and "noncontroversial substantive" changes into another BAT bill.  One change requires all governmental entities to require contractors to have an SC DOR sales license, another allows the register of deeds (ROD) refuse to record a sham document, among numerous other provisions.  H. 3767 is pending second reading on the House calendar.

G. Nonpartisan County Elections -- H. 3489.  The House Judiciary gave a favorable report to H. 3489.  The bill permits counties to hold nonpartisan elections for any or all of the following county offices: council; auditor; treasurer; clerk of court; probate judge; sheriff; coroner; or register of deeds.  Nonpartisan elections for those county offices may be adopted by ordinance or referendum called by a petition of 5% of registered voters.  H. 3489 is now pending second reading on the House calendar where there will be much debate and tough votes.

H. Criminal Domestic Violence -- H. 3143.  A House subcommittee gave a favorable report with amendments to H.3143, the "POWER (Protect Our Women in Every Relationship)" Act.  The bill requires judges to annually receive training on domestic violence, prohibits an arrest for criminal domestic violence using a uniform traffic ticket, and increases fines and jail/prison time for violations of domestic violence statutes.

I. Smoking Ordinances -- S. 374.  The Senate Judiciary Committee gave a favorable report to S. 374.  The amended bill would allow smoking ordinances to supersede state law or regulation.  S. 374 is pending second reading on the contested calendar and may never be reached for debate on the Senate floor.

J. Tobacco Fines -- S. 384.  The Senate gave second reading to S. 384 on Thursday.  Fines are increased for tobacco age offenses.  The amendment provides that the fines must be deposited with the city or county treasurer and the treasurer must remit half of the fine to the State Treasurer.

K. Juror Questionnaire -- S. 87.  After testimony from the Chief Justice, the Senate Judiciary Committee voted to continue S. 87, which kills the bill for the year.  The bill, as was proposed to be amended, no longer required a written juror questionnaire to every juror.

L. Mary Lynn’s Law -- H. 3543.  The House gave third reading to H. 3543 has been sent to the Senate.  The bill provides that the VINE (victim notification) system may be used, however electronic or automated victim notification must not be the sole form of victim notification.

M. Stalking -- S. 93.  S.93 redefines the crimes of stalking and harassment and requires a mental evaluation before bail is set on a stalking or harassment charge.  A Senate subcommittee carried this bill over with the intent of combining "Mary Lynn’s Law" (H. 3543) and S.93 when H. 3543 comes over from the House.

N. Prisoner Workers’ Comp -- S. 557.  The Senate gave second reading to S. 557 on Thursday.  SCAC, MASC, and Corrections were able to come to an agreement to allow cities to provide worker’s compensation insurance for prisoners they borrow from the county or the state to perform work.  Designated facility prisoners would be insured by the borrowing entity, whether it is the county or the city.

O. Jury Commissioners -- S. 578.  This legislation would allow "virtual" or computer presence of the jury commissioners at a drawing of a jury pool instead of physical presence.  The Senate Judiciary Committee carried over S. 578 to address some additional technical issues, but it is expected to receive approval next week.

P. Bonding of County Officials -- H. 3513.  A House 3M subcommittee gave a favorable report to H. 3513.  The bill allows counties to purchase a blanket fidelity bond for all or a portion of county officials or employees who are statutorily required to be bonded.  H. 3513 has been sent to the House 3M Committee.

Q. Bonding of County Officials -- S. 506.  The Senate gave second reading to S. 506.  The bill allows counties to purchase a blanket fidelity bond for all or a portion of county officials or employees who are statutorily required to be bonded.  This is a companion bill to H. 3513.

R. Probate Court Appeals -- H. 3050.  The House Judiciary Committee recommitted H. 3050 to subcommittee.  The bill would have provided direct appeal to the Court of Appeals from the probate court.

S. Correctional Officers’ Drivers Licenses -- S. 610.  The Senate Corrections Committee gave a favorable report to S. 610.  The bill provides that candidates for certification as local correctional officers may hold a valid current driver’s license issued by any state in the country.  Sen. Fair has been instrumental in moving this legislation.  Thanks!

T. Sex Offender Registry -- H. 3328.  A House Judiciary subcommittee adjourned debate on H. 3328.  The bill would amend the sex offender registry to require a sex offender to register in any county where they own real property, requiring Corrections to provide SLED with a photo of the inmate prior to the inmate’s release, and requiring SLED to include and cross-reference alias names.  Rep. Joan Brady has been instrumental in getting this bill introduced and considered.

Do you want a voice in creating the national legislative policies of the National Association of Counties?  Then consider filling out a NACo nomination form to be appointed to one of their 11 steering committees.  The nomination process for membership on NACo policy steering committees is underway.  As a steering committee member, you are responsible for debating and creating national policies and priorities affecting counties and serve as NACo’s front line in their grassroots efforts.  Committees meet at the NACo legislative and annual conferences and one other time during the year.  You will be responsible for your own travel.

Please contact Kathy Williams (kathy@scac.state.sc.us) at the SCAC Offices if you would like to receive a nomination form.  Completed forms must be received by SCAC no later than Friday, May 20.  The nominations will be processed by SCAC and forwarded to NACo for approval by incoming NACo President Bill Hansell after the NACo Annual Conference in July.  Appointments will be announced in September.

Newly-Introduced Legislation

H. 3905 -- Further provides for the duties and responsibilities of the State Auditor and requires the use of generally accepted auditing principals when auditing state agencies and local governments.

H. 3907 -- Increases the number of circuit court judges from 13 to 16 and increases the number of family court judges in the 5^th, 9^th, and 13^th circuits by one additional judge.

H. 3911 -- Provides that penalties imposed for late payment of property taxes also apply to a special tax or uniform service charge which is included on the property tax bill.

H. 3915 -- Allows SPDs, which only provide sewage collection and disposal services, to use any method of financing for the construction of sewer lateral collection lines not withstanding other provisions of law.

H. 3916 -- Gives probate judge autonomy over the court, including use of budgeted funds, employee classifications, compensation, and promotions.

H. 3917 -- Prevents counties from enacting ordinances that allow an automated traffic control system to be installed at a highway intersection.

H. 3918 -- Prevents counties from banning smoking in restaurants.

H. 3919 -- 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. 3920 -- Prohibits municipalities extending water or electric services to nonresidents from requiring annexation as a condition of receipt of the services.

H. 3930 -- Eliminates increases in property taxes.

H. 3931 -- Gives counties, who did reassessment after 2000, an additional year to implement the reassessment values.

H. 3932 -- Revises specific definitions regarding the State General Obligation Economic Development Bond Act.

H. 3938 -- Provides method of determining the fair market value of billboards for property tax purposes.

SENATE BILLS

S. 733 -- Creates the Division of Elections within the Department of Secretary of State and devolves certain powers and duties from the State Election Commission to the Division of Elections.

S. 734 -- Requires a person on a sex offender registry who acquires property to give written notice to the sheriff within 10 days of acquiring the property.

S. 735 -- Requires circuit and appellate courts to render a decision regarding an election protest within 60 days after the conclusion of the proceedings.

S. 737 -- Recodifies the provision allowing DMV to refuse to renew a person’s driver’s license and vehicle registration if the person has not paid property taxes on their vehicle.

S. 741 -- Concurrent resolution requesting that a sex offender must be placed under satellite surveillance continuously while on probation.

S. 747 -- Requires the county auditor to use the manufactured suggested retail price, the price published in DOR’s guide, or the actual price paid by the owner, whichever is lower, when determining the fair market value of a new vehicle.

Issue 13-05
April 8, 2005
 

The Senate activity now revolves around which bills will be considered before or after the Senate floor debate on the budget.  Senate bills coming after the budget face an uphill fight to pass this year because of the May 1 deadline, tough Senate bills on the Senate calendar, and House bills being considered for the first time.

The House Ways and Means Committee has three bills pending on its agenda for consideration next week which will make comprehensive reform of the property taxation system more difficult, if not impossible.  Those bills are:

H. 3264 -- Freezes the valuation for owner occupied residential property from time of purchase until it is sold.  This creates the illusion of property tax reform but fails to deliver real lasting change because it does not address the school millage drivers, shifts the property tax burden to other classes of property, and committee members may no longer feel the urgency to provide real restructuring and reform of the property tax system.

H. 3350 and H. 3227 -- These bills authorize additional local option sales taxes for capital projects -- H. 3350 for cities and H. 3227 for schools, which was passed by a subcommittee to Ways and Means this week.  If these are allowed to pass prior to consideration of the numerous plans, many legislators will be unwilling to consider a sales tax for property tax swap of any kind because the potential maximum sales tax rate will be too high to remain competitive with North Carolina and Georgia.  This is to say nothing of the other concerns SCAC has with these bills.

SCAC has supported the replacement of school operating property tax revenue with sales tax or other state revenue for several years.  Almost every viable plan which makes real property tax restructuring and relief includes some or all of the replacement revenue from sales tax increases.  The SCAC website has additional information regarding these bills which should prove useful when contacting your legislator.

B. The House retirement subcommittee held a public hearing this week and is fully engaged in the study of the challenge and potential solutions.  There are rumors that the potential House package will include elimination of the earnings cap, closing TERI to new participants on July 1, requiring employee contributions from TERI participants and retirees returning to work, some kind of COLA guarantee, a 1/2% increase in the employee contribution rate, and a 1% increase in the employer contribution rate.  These may be part of the subcommittee package in the end or there may be a completely different approach.  Keep watching.

C. Reminder: Employer contribution rate increase effective July 1, 2005.  Last year, the General Assembly adopted an employer rate increase of 0.85% which takes effect July 1, 2005 and must be accommodated in your budget ordinance.

Some provisos of interest to counties follow. A more detailed summary of the Senate Finance version of the budget will be published in next weeks Friday Report.

Proviso 30.17 -- Judiciary Courthouse Security.  The House adopted this proviso which authorized 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. Senate Finance deleted this proviso and the funding that was provided for this proviso.

Proviso 63.45 -- Law Enforcement Personnel Salary Review.  This House adopted proviso directed 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. Senate Finance deleted this proviso.

Proviso 72.112 -- Use of Accommodations Tax Revenue.  Senate Finance deleted this House passed proviso which 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.

Proviso 36A.8 -- Vehicle License Tax Year.  This amends an existing proviso to deal with tag flipping. The proviso directs DMV, afte