Friday Report

Home

Search

Feedback

Assistance

Site Index

(Best if viewed in Internet Explorer)

... Building Stronger Counties for Tomorrow

The Friday Report will be published online around 3:00 p.m. every Friday while the South Carolina General Assembly is in session.

Issue 3-08, January 25, 2008
Issue 2-08, January 18, 2008
Issue 1-08, January 11, 2008

(Back to Other 2008 Reports)

Issue 3-08

January 25, 2008

Spending Caps — S. 718

The Senate Spending Caps Study Committee met this week and began working on S. 718. The Study Committee includes Sens. Gregory (Chairman), Ford, Martin, Ritchie, Bryant, Sheheen and Lourie. The Study Committee is considering a cap on state government spending proposed as a constitutional amendment in S. 718. There was discussion of what basic formula to use for a state spending cap, but no discussion of whether any such cap should be extended to local governments. The subcommittee will meet again in two weeks.

2008 SCAC Mid-Year Conference, Legislative Reception
and Institute of Government

Mid-Year Conference and Legislative Reception to be held Wednesday, Feb. 13. The Mid-Year Conference will be held at Embassy Suites Hotel in Columbia. Registration information has been mailed and is available via the website. The program will provide a briefing on legislation affecting county government before the General Assembly and give county and state officials an opportunity to discuss those issues. Now is the time to start arranging meetings with members of your delegation. SCAC will also host the General Assembly at a reception Wednesday evening, Feb. 13, at Embassy Suites Hotel.

The Institute of Government classes will be held on Thursday, Feb. 14. These informational courses are open to all county officials. The course offerings include Managing and Conducting Meetings, Strategic Planning, the Property Taxation Process, and Developing Leadership Skills. There is a separate registration for these courses, and those materials have been mailed and are available on the website. The first two courses listed are also certified for land use planning official continuing education credit.


3.	Millage Rate Limitation Factors Act No. 388 of 2006 changed the methodology for determining local millage limitations in S.C. Code Section 6-1-320. A local governing body may increase the millage rate for general operating purposes above the rate imposed in the preceding tax year only to the extent of the increase in the average of the 12 monthly CPI indices for 2007 plus the percentage increase in population in the jurisdiction from July 1, 2006 to July 1, 2007. The average CPI increase for calendar year 2007 has been released and is 2.8 percent. The population estimates as of July 1, 2007 are not expected to be available until mid-March. These millage rate limitations can only be exceeded for specifically enumerated statutory conditions, and then only by a two-thirds vote of the governing body. Any millage levied above the millage rate limit for the enumerated reasons is temporary and does not become part of the base for the next fiscal year. SCAC will send out information on the population increases as soon as it becomes available.

4.	House Budget Subcommittees Meet Ways and Means budget subcommittees continued to meet this week. The Legislative, Executive and Local Government Subcommittee received information from the State Retirement System and the State Health Plan. The Retirement System informed the subcommittee of the potential impact of the attorney’s fee dispute in the TERI case currently being considered by the S.C. Supreme Court. The lower court granted the plaintiff’s attorneys $8 million. If the Supreme Court upholds that amount, the retirement system would look to the General Assembly to appropriate the judgment (the retirement fund cannot be used to pay judgments). There was also a great deal of discussion regarding the state’s assumed rate of return on investments and the granting of a cost of living adjustment (COLA) to retirees. Currently, the plan assumes a 7.25 percent rate of return on investments. The national norm is an 8 percent assumed rate of return. Currently, granting state retirees a 2 percent COLA would push the system beyond its 30-year unfunded liability limit. However, if the Budget and Control Board decides to amend the assumed rate of return to 8 percent, the 2 percent COLA could be granted with no increase in the contribution rate. The Police Officers Retirement System (PORS) would require a .14 percent increase in the employer contribution rate to grant a 2 percent COLA, even with an 8 percent assumed rate. The State Health Plan testified that no rate increases are expected for 2008 or 2009, and no changes to the health plan are anticipated through 2009.

5.	Immigration H. 4400 requires public employers and their contractors to participate in the federal work authorization program. It also preempts local immigration ordinances that exceed state or federal law. H.4400 received a favorable report from the House Judiciary Committee and is pending second reading on the House calendar. S. 392 was amended to mirror H. 4400, received a favorable report from the House Judiciary Committee and is pending second reading on the House calendar. H. 4353 requires that after July 1, 2008, all state agencies and political subdivisions shall offer all services; publications; printed, audio and video materials; and tests in an English-only format, unless otherwise required by law. The House Judiciary Committee adjourned debate on this bill. S. 857 provides that after July 1, 2008, all state agencies and political subdivisions shall offer all services; publications; printed, audio and video materials; and tests in an English-only format, unless otherwise required by law. S. 857 is now in the House. S. 856 is a resolution requesting a U.S. constitutional convention on immigration. It received a favorable report from the Senate Judiciary Committee and is pending second reading on the Senate calendar.
6.	Act 388 and Assessable Transfers of Interest There are some groups interested in revisiting the property tax restructuring legislation passed in 2006. Specifically, there is interest in eliminating or altering the point of sale approach to valuing property when it is subject to the 15 percent value increase cap and then changes ownership. Currently, the property would jump to full fair market value from the capped value when the property is sold or otherwise transfers ownership. There are areas where this may be a significant amount of taxable value being added to the tax base, and there are other areas where the cost of monitoring the tax base may outweigh the additional taxable value being added. If you have thoughts on this proposition, please contact the SCAC staff to let us know your thoughts. The SCAC Legislative Committee did not consider this possible proposal and adopted no position. If there is significant interest, the SCAC Board of Directors may be asked to consider taking a position.
7.	Other Items of Interest Traffic Diversion - H. 3572. The Senate gave third reading to H. 3572 this week, and it is pending House action on the Senate amendments. This legislation would allow a first-time traffic offender to avoid a conviction, including the fine and points, if they enter an education or public service program. All solicitors are responsible to begin a program. The solicitor is allowed to enter into a contract with a local government to run the program. The legislation gives the entity which runs the program $140 and holds state agencies harmless for their losses due to diverted traffic tickets. Day Tourists/Accommodations Tax - S. 876. A Senate Finance subcommittee carried over S. 876 this week. The bill would define "day visitor" for the purposes of the state accommodation tax as "a person who travels outside of his community or environment, regardless of the distance traveled, for the primary purpose of engaging in a leisure or recreational activity for no more than one day per visit." Then, it would allow municipalities with a high concentration of tourism activity to spend state accommodations tax revenue on law enforcement, traffic control, public facilities and highway and street maintenance, if the expenditure is to attract and service day visitors. Probate Judge Qualifications - S. 861. This bill would require a candidate for probate judge to be an attorney licensed to practice for five years or more. A Senate Judiciary subcommittee adjourned debate on this bill to receive input from the probate judges. Recreation District Dissolution - S. 977. This bill would allow a special purpose district offering only recreational services to voluntarily dissolve and transfer its assets to a county. A Senate subcommittee adjourned debate until a future meeting. Beach Renourishment - S. 905. A Senate Finance subcommittee reported S. 905 out favorably this week. The bill allows municipalities or counties to issue bonds for controlling and repairing waterfront erosion. The bill also allows an "at-risk beach" which is ranked in the annual State of the Beaches Report to retain its state accommodations tax draw, if it is a donor county area under the state accommodations tax. All county areas in the state are guaranteed at least $50,000 adjusted for increases in the total state accommodations tax collections. The bill doesn’t alter the draw of recipient county areas, if a jurisdiction requests an opt-out. A beach that asks to retain its accommodations tax money must use the revenue to issue or service beach renourishment bonds. Water Withdrawal Permitting - S. 428. This legislation would create a permitting process for surface water withdrawal and use. The subcommittee received a substantial proposed amendment and decided to continue work on the bill at another meeting prior to the Feb. 13 full committee meeting. Magistrates - S. 503. This legislation would allow a magistrate in one county to issue a warrant for a person charged with a crime in that county, but residing or located in another county, without requiring the warrant be endorsed. A Senate Judiciary subcommittee voted to report this bill favorably to the full committee. Magistrates - S. 542. This legislation would increase from 100 hours to 250 hours the amount of community service time to which a magistrate may sentence a person. A Senate Judiciary subcommittee voted to report this bill favorably to the full committee. DNA Sampling - S. 890. S. 890 allows DNA sampling from someone lawfully arrested for a felony offense that carries a five-year or more sentence—or for eavesdropping, peeping or stalking. It requires samples to be taken before a person is paroled, released from confinement or turned over to another agency’s jurisdiction. The state pays for the costs of collecting and processing the DNA samples. S. 890 was passed by the Senate with some amendments to clarify expungement procedures and is now in the House. EMT Background Checks - S. 297 and H. 4334. These bills require a criminal background check before employment as an EMT or renewal of an EMT license. A House 3M subcommittee voted to give H. 4334 a favorable report pending a fiscal impact report that does not exceed $21,000.The Senate Medical Affairs Committee gave S. 297 a favorable report, and the bill is pending third reading on the Senate calendar. Mandatory Fire Sprinklers - H. 4470. This legislation would offer a combination of corporate income tax credits and a five-year county operating property tax exemption on the value of a sprinkler system for manufacturing facilities built before July 1, 2008 for installation or upgrades to fire sprinkler systems. The legislation also caps the amount local governments can charge for the construction of water lines dedicated to serving sprinkler systems at actual cost. A House Ways and Means subcommittee reported this bill favorably to the full committee.
8.	SCAC Lobby Days Schedule Please mark your calendar, and plan to come to Columbia on the following Tuesday for the Lobby Day scheduled for your county. You may certainly come on a different or additional Tuesdays, if your schedule allows or requires it. Each Lobby Day will begin at 10 a.m. in the SCAC office with a briefing on the specific meetings scheduled at the State House and the issues which you might make the most impact upon. We will then adjourn at 11 a.m. to visit the General Assembly. If you call ahead of time, it is also a good idea to schedule lunch with one or more of your delegation members. Jan. 29 - Allendale, Charleston, Cherokee, Chester, Lee Feb. 5 - Chesterfield, Dorchester, Kershaw, Lexington, Newberry Feb. 19 - Clarendon, Colleton, Darlington, Edgefield, Marion Feb. 26 - Anderson, Calhoun, Dillon, Fairfield, Jasper March 4 - Florence, Hampton, Laurens, McCormick, Williamsburg March 11 - Bamberg, Horry, Lancaster, Marlboro March 18 - Orangeburg, Saluda, Spartanburg, York March 25 - Greenville, Greenwood, Oconee, Union

9.	NACo Legislative Conference — March 1-5 The 2008 NACo Legislative Conference is scheduled for March 1-5 in Washing-ton, D.C. Enclosed is the registration form. After January 24, hotel rooms are subject to availability. The South Carolina delegation is hoping for the Hilton Washington.

10.	*'Can't Wait to Get Your Friday Report* or Missed Your E-mail Version This Week?** Information has a short shelf life in the legislative arena. The sooner you receive legislative updates, the sooner you are able to contact members of the General Assembly to thank them for doing helpful things or give them the information they need to make better decisions. The Friday Report is usually available on the website by 3 p.m. on Friday. The Friday Report can also be sent to you directly via e-mail. Just fax the enclosed form, or follow the e-mail request instructions. If you stop receiving the e-mail version of the Friday Report, call us. We may have an e-mail address that is no longer valid.

Newly-Introduced Legislation

Note: If you would like copies of any of the bills or if you would like to offer comments to the SCAC staff, please call us toll-free at 1-800-922-6081, fax to 1 (803) 252-0379 or send e-mail. You can view or download bills by clicking on the bill number.

HOUSE BILLS

H. 4543 - amends the accommodations tax provisions by adding a definition for "day visitor," and authorizes counties to use the accommodations tax revenues to attract and provide for day visitors.

H. 4549 - provides that the sales, use and casual excise tax revenues in a fiscal year from the sale, use or titling of a vehicle in this state must be credited to the state highway fund.

H. 4552 - creates utility police officers that are vested with all powers and duties conferred by law upon state law enforcement officers with similar training and certification.

H. 4554 - prohibits a county or municipality from imposing a license, occupation, or professional tax or fee upon real estate licensees, but does allow such a fee for the brokers-in-charge.

H. 4561 - authorizes counties and municipalities to issue bonds to finance the costs of controlling and repairing waterfront erosion.

SENATE BILLS

S. 1025 - appropriates $9,154,990.63 from FY 2007-2008 general fund revenues to supplement distributions to school districts adversely affected by the unrevised 2007 Index of Taxpaying Ability.

S. 1026 - establishes the Rural Crossroads Institute, which promotes economic development and growth in rural areas, as an entity a person can make a voluntary contribution to for income tax purposes.

S. 1027 - provides that anything of value given to make communications within 45 days of an election to influence the outcome of an elected office is considered a campaign contribution subject to the reporting provisions.

S. 1030 - requires the S.C. Venture Capital Authority to establish guidelines for procedures to issue tax credits for investments in South Carolina or in South Carolina based companies.

Issue 2-08

January 18, 2008

Spending Caps Public Hearing and Subcommittee Meeting

The Senate Spending Caps Study Committee held a public hearing on Jan. 15. The Study Committee includes Sens. Gregory (Chairman), Ford, Martin, Ritchie, Bryant, Sheheen and Lourie. The Study Committee is considering a cap on state government spending proposed as a constitutional amendment in S. 718. A great deal of the public testimony in previous public hearings supported expanding the spending the cap to include local governments. Those advocating a local spending cap want it to be in addition to the existing millage rate cap. The vast majority of testimony at this meeting came from local government officials, school districts and local chambers of commerce expressing problems with, and opposition to, spending caps on local government.

Thanks to Wayne Adams, Newberry County Administrator; Lyndon Anthony, Clarendon County Finance Director; Flora Boyd, Administrator of the Kershaw County Detention Center; and Steve Willis, Lancaster County Administrator; for testifying about the effect the existing millage rate cap has on their county and what effect a local spending cap may have upon county services.

The study committee will meet on Wednesday, Jan. 23, at 10 a.m. in Room 105 of the Gressette Building to begin making decisions on this legislation. Please contact Study Committee members about this issue, and ask them to reject an additional limitation on local governments.


3.	SCAC Lobby Days Schedule Please mark your calendar, and plan to come to Columbia on the following Tuesday for the designated Lobby Day. You may certainly come on a different or additional Tuesdays, if your schedule allows or requires it. Each Lobby Day will begin at 10 a.m. in the SCAC office with a briefing on the specific meetings scheduled at the State House and the issues which you might make the most impact upon. We will then adjourn at 11 a.m. to visit the General Assembly. If you call ahead of time, it is also a good idea to schedule lunch with one or more of your delegation members. Jan. 22 - Aiken, Barnwell, Berkeley, Pickens, Richland Jan. 29 - Allendale, Charleston, Cherokee, Chester, Lee Feb. 5 - Chesterfield, Dorchester, Kershaw, Lexington, Newberry Feb. 19 - Clarendon, Colleton, Darlington, Edgefield, Marion Feb. 26 - Anderson, Calhoun, Dillon, Fairfield, Jasper March 4 - Florence, Hampton, Laurens, McCormick, Williamsburg March 11 - Bamberg, Horry, Lancaster, Marlboro March 18 - Orangeburg, Saluda, Spartanburg, York March 25 - Greenville, Greenwood, Oconee, Union

4.	Title 24 — Jails Statutes Recodification — S. 590 A Senate Corrections subcommittee gave a favorable report to S. 590 this week, and it will be before the Senate Corrections Committee when it meets on Feb. 7. S. 590 will remove some conflicting provisions of statutes, delete statutes which are called into question by court cases and modernize the terminology used in the statutes relating to local detention facilities. This is the product of more than a year’s effort by SCAC’s Local Detention Facility Study Committee. Please take time to thank the subcommittee members [Sens. Hawkins (Chairman), Patterson and Massey] for their support and Sen. Fair for sponsoring the bill.

5.	House Budget Subcommittees Meet Ways and Means budget subcommittees continued to meet this week. Among several other agencies, the Law Enforcement and Criminal Justice Subcommittee heard from the Department of Corrections and the Judicial Department. The Director of the Department of Corrections reported to the subcommittee that his agency was picking up state prisoners from local jails in a timely manner, and that he had not heard any complaints since last year. However, he also stated that unless the state builds a new jail and/or deals with the increase in prisoners utilizing other methods, the measures taken last year will not last. The Chief Justice, speaking on behalf of the Judicial Department, asked that the filing fee increase provisos in the budget be codified. She additionally said that if the subcommittee was interested, the agencies which receive revenue from the $25 surcharge could meet and develop permanent language to codify the surcharge. All members of the subcommittee were interested in the Chief Justice pursuing such action.

6.	Immigration There were 17 immigrations bills before a House Judiciary subcommittee this week. Action was taken on five of the bills. All five of the following bills were given a favorable report and will be before the House Judiciary Committee at its next meeting: H. 4400, among other things, requires public employers and their contractors to participate in the federal work authorization program. This bill was amended to preempt local immigration ordinances that exceed or otherwise violate state or federal law. S. 392 was amended to mirror H. 4400. H. 4347 is resolution to direct the Attorney General to seek reimbursement from the federal government for all costs associated with the incarceration of illegal immigrants. H. 4385 requires an appropriate official to ascertain and report illegal immigrants that are confined on felony or DUI charges. H. 4353 requires that after July 1, 2008, all state agencies and political subdivisions shall offer all services; publications; printed, audio and video materials; and tests in an English-only format, unless otherwise required by federal law or regulation. H. 4353 was amended to provide five exceptions.
7.	Other Items of Interest A. OPEB/GASB 45 - H. 3789. This bill would allow the state to set up a vehicle for investing funds in the stock market to provide for funding of the Other Post Employment Benefits (OPEB). The Senate Finance Committee amendment was adopted, and it is still pending second reading on the Senate calendar. B. Traffic Diversion - H. 3572. This legislation remains on the Senate Calendar pending third reading. H. 3572 would allow a first-time traffic offender to avoid a conviction, including the fine and points, if they enter an education or public service program. All solicitors are to begin a program. The legislation gives the entity which runs the program $140 and holds state agencies harmless for losses due to diverted traffic tickets. The bill fails, however, to hold harmless local entities which are not fortunate enough to convince the solicitor to let them run the program. H. 3572 will likely pass, unless Senators are contacted and asked to oppose the legislation. Please contact your Senator, and ask that they object to H. 3572. C. English-Only Government Publications - S. 857. This bill requires all state agencies and political subdivisions to offer all services; publications; printed, audio and video materials; and tests in an English-only format unless otherwise required by federal law or regulation. S. 857 received a favorable report from the Senate Judiciary Committee and is pending second reading on the Senate calendar. D. Legal Residence Ratio Criteria - S. 422. This bill would create a 90-day safe harbor provision for renting an owner-occupied home without losing the 4 percent legal residence status. The change would be applicable to tax years 2005 and 2006 with the refund application period open until Jan. 1, 2009. S. 422 was amended to apply the safe harbor only to rentals made without paying a commission and given second and third reading this week. The bill now goes to the House. E. Catawba River Lawsuit. The U.S. Supreme Court appointed a special master to oversee the state’s lawsuit over Catawba River water rights against North Carolina. A special master acts as a trial court judge to summon witnesses, issue subpoenas and hear evidence. She will then submit her findings and recommendations to the full court for a final ruling. It will be quite a while before this case is resolved. F. Water Withdrawal Permitting - S. 428. A Senate Agriculture and Natural Resources Subcommittee will meet Wednesday, Jan. 23, at 10:30 a.m. in Room 209 of the Gressette Building to discuss S. 428. This bill would create a statewide permitting process for the withdrawal of public waters from the various water basins of the state. G. Smoking Ban - S. 103. The House Judiciary Committee voted to recommit this bill to subcommittee. At the committee, there was an attempt to remove the provision allowing local government to enact a provision more stringent than state law and to insert language preempting additional local government regulation. Several committee members wanted to wait until the Supreme Court rules in the City of Greenville smoking ban case that was heard Jan. 9 to decide the issue of preemption. H. DNA Sampling - S. 890. S. 890 allows DNA sampling from someone lawfully arrested for a felony offense that carries a five-year or more sentence—or for eavesdropping, peeping or stalking. The bill requires samples to be taken before a person is paroled, released from confinement or turned over to another agency’s jurisdiction. The state pays for the costs of collecting and processing DNA samples. S. 890 received a favorable report from the Senate Judiciary and has been placed on the Senate calendar. I. EMT Background Checks - S. 297. This bill requires a criminal background check before employment as an EMT or renewal of an EMT license. The Senate Medical Affairs Subcommittee amended the bill so that it does not apply to an EMT employed as of July 1, 2008 until they recertify and gave S. 297 a favorable report.

8.	*'Can't Wait to Get Your Friday Report* or Missed Your E-mail Version This Week?** Information has a short shelf life in the legislative arena. The sooner you receive legislative updates, the sooner you are able to contact members of the General Assembly to thank them for doing helpful things or give them the information they need to make better decisions. The Friday Report is usually available on the website by 3 p.m. on Friday. The Friday Report can also be sent to you directly via e-mail. Just fax the enclosed form, or follow the e-mail request instructions. If you stop receiving the e-mail version of the Friday Report, call us. We may have an e-mail address that is no longer valid.

Newly-Introduced Legislation

HOUSE BILLS

H. 4470 - establishes a corporate property tax exemption for adding to and upgrades to fire sprinkler systems of manufacturing establishments in existence before July 1, 2008.

H. 4478 - allows persons to receive a retirement allowance under a retirement system other than the S.C. Retirement System or the S.C. Police Officers Retirement System, while subsequently employed by another entity covered by these systems; but, they will not become a member of these systems as a result of the subsequent employment.

H. 4479 - provides that the Homestead Exemption will be indexed in the same manner as federal income tax brackets are adjusted to reflect increases in the Consumer Price Index.

H. 4487 - provides that unless there is a two-thirds vote of both houses of the General Assembly, appropriations made for recurring purposes from nonrecurring general fund revenues for a fiscal year may not exceed 1 percent of the total general funds estimated by the Board of Economic Advisors to be available for that fiscal year at the time the appropriations are made.

H. 4489 - requires law enforcement officers to collect and compile certain information when issuing a uniform traffic ticket, and that the Governor may withhold state funds from a law enforcement agency that does not comply with this requirement.

H. 4491 - creates the offense of eluding a law enforcement officer after a lawful stop, and provides for penalties and the suspension of the person's driver’s license under certain circumstances.

H. 4499 - allows attorney’s fees and expenses to be awarded to a taxpayer who prevails in an assessor’s denial of agricultural use of real property after all appeals have been exhausted, and eliminates the requirement of a finding that the assessor’s action was unreasonable.

SENATE BILLS

S. 996 - authorizes counties to establish and operate public ferries connecting parts of public roads not under state control, and allows the state and counties to contract with private entities to finance the public ferries.

S. 998 - allows a surviving spouse to retain the property tax exemption allowed their deceased spouse for their home and a lot not to exceed one acre provided they do not remarry, they reside in the home, and they obtain the fee or a life estate in the home.

S. 1006 - allows the spouse or dependent of a state or local law enforcement officer or firefighter who is killed in the line of duty after Jan. 1, 2007 to continue to receive health and dental benefits.

S. 1008 - requires state and local governments to verify that persons who apply for public benefits are lawfully present in the U.S.

Issue 1-08

January 11, 2008

This first week of the 2008 legislative session saw the reorganization of the Senate committees and the beginning of House budget subcommittee work. Next week will begin the more usual course of business.

2008 SCAC Legislative Program

The success of SCAC’s legislative program is a direct result of the number of county officials who take an active part in the program. SCAC staff provides volumes of information, facts and statistics, but it is the individual phone conversations, e-mail, in person contacts and letters from local leaders back home which are the most effective.

SCAC has a series of Lobby Days scheduled to facilitate personal visits to the State House. SCAC will also hold the Mid-Year Conference and Legislative Reception on February 13.

Here’s how you can make your participation most effective:

Read the Friday Report and Legislative Alerts.
Respond to the information in the Friday Report and Legislative Alerts. These publications will tell you when your input may make the most difference in the legislative process.
Interact with your legislators on a regular basis, not just when you want to ask them for a vote.
Be clear, concise, and accurate when you address an issue.
Ask for a commitment and be clear on the answer. When not clear, ask a clarifying question, such as "So you’ll vote to table the amendment?"
Thank them. If they agreed to support your request, thank them. If they did not agree to support your position, then thank them for their time and attention to your concerns.
Relay the results of your communications with legislators to the SCAC staff. This is the only way we can get an accurate gauge of the support for or opposition to a particular proposal.

Spending Caps Public Hearing and Subcommittee Meeting

The Senate Spending Caps Study Committee has scheduled two meetings:

public hearing - Tuesday, Jan. 15 at 5:30 p.m. in room 105 of the Gressette Building.
subcommittee meeting - Wednesday, Jan. 23 at 10 a.m. in room 105 of the Gressette Building.

The Study Committee includes Sens. Gregory (Chairman), Ford, Martin, Ritchie, Bryant, Sheheen and Lourie. The Study Committee is considering a cap on state government spending proposed as a constitutional amendment in S. 718. A great deal of the public testimony in public hearings during the winter supported expanding the spending cap to include local governments. Those advocating a local spending cap want it to be in addition to the existing millage rate cap. Some of the most effective presentations during earlier public hearings have been from county officials.

Please make plans to come and let the Study Committee members know what effect the existing millage rate caps are having on county services and what effect a local spending cap may have on county services. Please remind the Senators of several points:

1. Counties already have a spending cap in the form of a millage rate cap.

2. Explain any difficulties the existing millage rate cap has caused or will cause.

3. Spending caps create other problems:

services and infrastructure would always be a step behind the population growth;
spending caps don't allow for additional or increased levels of service

unexpected events sometimes arise which are not natural disasters—econ-omic development prospects late in the fiscal year.

spending caps discourage consolidation or regionalization—who would be host with all of the expense?

3.	2008 Mid-Year Conference, Legislative Reception and Institute of Government Mid Year Conference and Legislative Reception to be held Wednesday, Feb. 13. The Mid-Year Conference will be held at the Embassy Suites Hotel in Columbia. Registration information has been mailed, is available via the website, and a copy of the materials are enclosed in this Friday Report. The program will provide a briefing on legislation affecting county government before the General Assembly and give county and state officials an opportunity to discuss those issues. Now is the time to start arranging meetings with members of your delegation. SCAC will also host the General Assembly at a reception Wednesday evening, Feb. 13 at Embassy Suites Hotel. The Institute of Government classes will be held on Thursday, Feb. 14. These informational courses are open to all county officials. The course offerings include Managing and Conducting Meetings, Strategic Planning, the Property Taxation Process, and Developing Leadership Skills. There is a separate registration for these courses and those materials have been mailed, are available on the web, and enclosed in this Friday Report. The first two courses listed are also certified for land use planning official continuing education credit.

4.	SCAC Lobby Days Schedule Please mark your calendar and plan to come to Columbia on the following Tuesday for the designated Lobby Day. You may certainly come on a different or additional Tuesdays, if your schedule allows or requires it. Each Lobby Day will begin at 10 a.m. in the SCAC office with a briefing on the specific meetings scheduled at the State House and the issues which you might make the most impact upon. We will then adjourn at 11 a.m. to visit the General Assembly. If you call ahead of time, it is also a good idea to schedule lunch with one or more of your delegation members. Jan. 15 - Abbeville, Beaufort, Georgetown, Sumter Jan. 22 - Aiken, Barnwell, Berkeley, Pickens, Richland Jan. 29 - Allendale, Charleston, Cherokee, Chester, Lee Feb. 5 - Chesterfield, Dorchester, Kershaw, Lexington, Newberry Feb. 19 - Clarendon, Colleton, Darlington, Edgefield, Marion Feb. 26 - Anderson, Calhoun, Dillon, Fairfield, Jasper March 4 - Florence, Hampton, Laurens, McCormick, Williamsburg March 11 - Bamberg, Horry, Lancaster, Marlboro March 18 - Orangeburg, Saluda, Spartanburg, York March 25 - Greenville, Greenwood, Oconee, Union

5.	Title 24 — Jails Statutes Recodification — S. 590 S. 590 will remove some conflicting provisions of statutes, delete statutes which are called into question by court cases and modernize the terminology used in the statutes relating to local detention facilities. This is the product of more than a year’s effort by SCAC’s Local Detention Facility Study Committee. S. 590 is scheduled for a Senate subcommittee meeting Thursday, Jan. 17 at 9:30 a.m. in room 209 of the Gressette Building. The subcommittee members are Sens. Hawkins (Chairman), Patterson and Massey.

6.	Retirement System COLA Task Force Completes Its Work For the last several months, a task force has been looking at ways to shore up the fiscal strength of the retirement systems—both the State Retirement System (SCRS) and the Police Officers Retirement System (PORS)—and to provide funding for more than the current 1 percent pre-funded (or guaranteed) cost of living adjustment (COLA) that is provided by the SCRS. The recommendation adopted by the task force was to increase the assumed rate of return on investments owned by the system to 8 percent (up from the current 7.25 percent) and to increase the pre-funded or guaranteed COLA to 2 percent. The recommendation also allows the Budget and Control Board to grant a discretionary COLA not to exceed an additional 2 percent, if four tests relating to the fiscal condition of the retirement fund are met. This change is recommended for both the SCRS and the PORS. The change recommended requires no change in the employer or employee contribution rate for the SCRS. The change will require an increase in the PORS employer contribution rate of 0.41 percent. No change recommended will take effect until approved by the General Assembly and the Budget and Control Board. SCAC will keep you informed.

7.	FY 2008-09 Local Government Fund The schedule of Local Government Fund (LGF) distributions by county for FY 2008-09 is enclosed. The projected increase is 7 percent, or an additional $16.2 million for counties. The LGF is funded by a statutory formula in an amount equal to 4.5 percent of the state general fund for the latest completed fiscal year. Governor Sanford fully funded the LGF in his executive budget.

8.	Joint Study Committee on Eminent Domain The study committee on eminent domain met for a final time this week to adopt its report to the General Assembly. The report will include two categories of issues. Recommendations are items the study committee could agree upon and support. Items of information were issues which were included in the report without a recommendation. The study committee adopted a recommendation to require local government planners obtain specific training in regulatory takings issues and require local governments to develop and maintain Landowner Impact Assessments to monitor the impacts upon landowners and land values of planning, zoning and other locally imposed regulations within the jurisdiction. The informational items included proposals to require local governments to provide written notice to affected property owners of issuance or denials of permits; a rollback property tax value when there is a down zoning of property; and changes to current procedures for the use of eminent domain to remedy blight. One additional item of information to be included is that 13 of the 15 speakers on the issue of regulatory takings spoke against the proposal.

9.	Other Items of Potential Interest A. Identity Theft - S. 453. A House Judiciary subcommittee gave a favorable report to S. 453 after adopting several amendments requested by various business groups. One of the amendments states that public information obtained from local government records is not considered personal identifying information for purposes of S. 453. The bill will be considered at the next House Judiciary Committee meeting. B. Fire Sprinklers - S. 921. A public hearing on requiring fire sprinkler systems was held this week in the Senate. Most speakers supported mandatory retrofitting of existing buildings and compensating owners with some form of tax credits. There were no specifics as to whether public buildings would be addressed. Most in attendance asked for the enforcement of the International Fire Code and an elimination of the current grandfathering clause. There was considerable discussion as to the ability of local governments to pass fire regulations more strict that the state. Currently local governments building codes may not exceed those dictated by the building codes council. Specifically mentioned was that local governments may not adopt appendices which may provide for greater fire protection. A member of the building codes council who testified stated that he was opposed to taking the ability for local governments to adopt appendices away in the first place, and that he would have no objection to returning that ability back to local governments. C. English-Only Government Publications - S. 857. This legislation requires all state agencies and political subdivisions to offer all services, publications, printed, audio and video materials, and tests in an English-only format unless otherwise required by federal law or regulation. A Senate Judiciary Subcommittee amended and reported S. 857 out favorably this week. D. U.S. Constitutional Convention on Immigration - S. 856. A Senate Judiciary subcommittee reported S. 856 out favorably this week. S. 856 is a resolution requesting congress to call a U.S. constitutional convention to propose an amendment to provide that no provision of the constitution shall limit a state from enforcing federal immigration law and provide that a state may decide what government services may be provided or denied to undocumented aliens.

10.	2008 SCAC Legislative Policy Positions The Policy Positions for the 2008 Session of the S.C. General Assembly adopted by the SCAC Legislative Committee were mailed to county officials earlier and are available via the website. The legislative development process is discussed in detail in the front of the policy positions publication and on the website. A copy of the *2008 SCAC Legislative Priorities* pamphlet is enclosed.

11.	*'Can't Wait to Get Your Friday Report* or Missed Your E-mail Version This Week?** Information has a short shelf life in the legislative arena. The sooner you receive legislative updates, the sooner you are able to contact members of the General Assembly to thank them for doing helpful things or give them the information they need to make better decisions. The Friday Report is usually available on the web by 3 p.m. on Friday. The Friday Report can also be sent to you directly via e-mail. Just fax the enclosed form, or follow the e-mail request instructions. If you stop receiving the e-mail version of the Friday Report, call us. We may have an e-mail address that is no longer valid.

Newly-Introduced Legislation

HOUSE BILLS

H. 4301 - Authorizes certain actions for damages under the Tort Claims Act to be brought in magistrates court.

H. 4310 - Creates the State Highway Repaving Trust Fund, which consists of taxpayer’s voluntary contributions to be appropriated to the counties for the repair and maintenance of roads.

H. 4313 - Enacts the South Carolina Consumer Credit Report Security Freeze Act, which allows consumers to put a freeze on their credit file by a credit reporting agency when they are the victim of financial identity fraud. The freeze does not apply to federal, state or local governmental entities.

H. 4332 - Amends the state constitutional provision regarding spending limitations on appropriations for state and local government.

H. 4326 - Provides that is a crime to possess or display a falsified or counterfeit green card.

H. 4334 - Requires Emergency Medical Technician applicants to undergo a criminal records check prior to certification and for renewal of certification.

H. 4337 - Exempts farm land, forest land, and undeveloped land from stormwater runoff fees.

H. 4338 - Redefines contributions for elections purposes to exclude certain things of value used to pay for communications made more than 45 days before an election to influence the outcome of an elected office.

H. 4343 - Authorizes police chiefs in their discretion to allow reserve police officers to wear plain clothes or another uniform that is consistent with their duties as a law enforcement officer.

H. 4349 - Provides that it is illegal for a bail bondsman to execute a bail bond and remove a defendant from custody without charging and collecting the full required premium on the bond.

H. 4351 - Exempts municipal elections from certain requirements for holding a special election to fill an office when only one person has filed for an office.

H. 4352 - Requires a voter registration certificate to have the voter’s photograph on it.

H. 4353 - Provides that after July 1, 2008, all state agencies and political subdivisions shall offer all services; publications; printed, audio and video materials; and tests in an English-only format, unless otherwise required by federal law or regulation.

H. 4355 - Authorizes counties by ordinance to extend the state sales tax exemption for food items to a locally imposed sales and use tax.

H. 4366 - Provides that the Homestead Exemption for disabled veterans, law enforce-ment officers or firefighters that are disabled as a result of service-connected disability, first applies for the property tax year the disability was certified.

H. 4375 - Enacts the Public Facilities Fair Use Act.

H. 4381 - Authorizes local government entities to enter into contracts with third parties to collect on outstanding liabilities owed to the governmental entity.

H. 4384 - Requires state and local governments to verify that the applicants for public benefits are lawfully present in the U.S.