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Friday Reports — March 2007

Issue 12-07, March 30, 2007

Issue 11-07, March 23 2007

Issue 10-07, March 16, 2007

Issue 09-07, March 9, 2007

Issue 08-07, March 2, 2007

(Back to Other 2007 Reports)

Issue 12-07 — March 30, 2007

The Senate devoted its time this week to the Department of Transportation restructuring legislation, staying in session longer than usual Wednesday and Thursday. The Representatives' time was pretty much devoted to education on the floor of the House this week. In particular, 4-year-old kindergarten and school open enrollment bills kept the House in session most of the week. The House will take an Easter recess next week and meet again on April 10.

Elimination of County Inmate Quotas Within Reach

Last week, we reported that SCDC rejected a proposed solution to the county inmate quotas. There has been a great deal of activity in the last week between Sen. Mike Fair's office and SCDC to resolve this matter. Sen. Fair has drafted a proviso to the budget bill that is tied to a $4.7 million funding package for SCDC. The proviso authorizes SCDC to create a "jail" within the Kirkland Correctional Institution to accept newly-sentenced inmates who are awaiting processing. SCDC must immediately accept ALL sentenced inmates that a county transports to SCDC's custody, as long as the inmates are delivered between 8 a.m. and 3 p.m., Monday-Friday, excluding holidays. If SCDC provides transportation, all prisoners must be picked up within 15 days after sentencing. If SCDC does not pick up prisoners within 15 days, they must reimburse the county for all expenses incurred after the 15th day, until the inmate is transferred.

At the time of transfer, counties must provide the sentencing order, medical records, booking reports and other criminal background documents that are readily available. Counties that have not performed medical screenings are not required to do so. The $4.7 million will be used to open a 256-bed unit at Broad River Correctional Institution, a 96-bed unit at MacDougall Correctional Institution, and any portion of the 192-bed housing units at Kirkland Correctional Institution not utilized for the "jail." Sen. Fair and his staff have worked tirelessly on this issue, and county officials should thank them for their hard work.

Please contact members of the Senate Finance Committee and ask them to support Sen. Fair's Proviso in SCDC's budget.

Workers' Compensation Reform — S. 332

S. 332 to provide for reform of the Workers' Compensation system is pending second reading on the contested Senate calendar. The talk around the lobby is that next week will be the start of debate on S. 332. Debate is expected to be protracted with numerous amendments offered.

The bill, as it came out of committee, does the following:

Closes the Second Injury Fund with no claims authorized for injuries occurring after July 1, 2008.
Creates a rebuttable presumption for back injuries being deemed permanent and total disability. Current law is that it is conclusive proof of permanent and total disability. The award for these back injuries was amended to increase the amount of an award. A bad amendment, but not a killer.
Makes the current law on repetitive trauma worse.
Addresses the Ellison case (awarded permanent and total disability for a 20 percent leg injury based upon numerous, unrelated preexisting conditions) to improve the current law.

GASB 45/OPEB — S. 462 and S. 463

OPEB Trust Fund – S. 462. A Senate Finance subcommittee took up S. 462 to allow the state to set up a trust fund to provide for retiree health insurance, referred to as Other Post Employment Benefits (OPEB). The bill only addresses retiree health benefits for state employees and school teachers. Creating a trust fund could lower the liability for retiree health benefits created by GASB 45. S. 462 does not allow participation by counties and cities in the state's plan.

Last week, SCAC offered an amendment to allow local governments to participate as a group in the plan in order to lower administrative and operating tasks and costs. This week, the State Treasurer's Office asked the subcommittee not to adopt that amendment, because it would complicate the start-up of the state plan. In response to questions from subcommittee members, the Treasurer's Office suggested that cities and counties could be authorized to enter a contract with the Investment Commission set up to invest retirement system funds. The Investment Commission was not present to provide feedback on that alternative. Subcommittee members seemed willing to authorize the Investment Commission to enter into those contracts. S. 462 will be before the subcommittee again.

OPEB Investment – S. 463. This constitutional amendment would allow trust funds established for the funding of Other Post Employment Benefits to be invested in equity securities. The Senate Judiciary Committee ran out of time this week and carried S. 463 over to next week.

EMT Police Retirement — H. 3211 and H. 3288

A House Ways and Means subcommittee considered H. 3211 and 3288 this week. These bills would have required all emergency medical services personnel to participate in the Police Officers Retirement System. The bill would have cost the state $35 million and extended the unfunded liability period for the Police Officers Retirement System by two years. Additionally, the employer annual fringe benefit cost for these employees would have increased by an average of $536 per employee. The subcommittee adjourned debate on these bills.

Traffic Offense Diversion Program — H. 3572

A House Judiciary subcommittee reported H. 3572 out favorably with amendments this week. H. 3572 would allow a first-time traffic offender to avoid a conviction, including the fine and points, if they enter an education and/or public service program. The subcommittee amended the bill to send the arresting jurisdiction $40 of the $140 participation fee. There was no change to the hold harmless amount of $140 for state agencies which receive fine assessment revenue.

Additionally, the subcommittee amended the bill to authorize the release of the first ticket to an insurance company, if a subsequent ticket is issued within a set amount of time. H. 3572 will be before the House Judiciary Committee when it meets.

Immigration — S. 392

S. 392 requires every public sector employer and service contractors with public entities to participate in the federal work authorization program for contracts worth more than $15,000. An amendment allows acceptance of a valid driver's license or DMV ID as proof of status. The bill also requires anyone applying for public benefits to verify that they are a legal resident. Finally, it authorizes SLED to negotiate an agreement with the federal government for enforcement of immigration and customs laws to include training officers to enforce these laws. Implementation of the SLED agreement provision would only take place upon receiving federal funds for training. The Senate Judiciary Committee gave this bill a favorable report, and it is pending second reading on the contested Senate calendar.

SPD Dissolution — H. 3726

A House Judiciary subcommittee took up H. 3726 without taking action on the bill. The bill allows a special purpose district to adopt a resolution to dissolve itself; and the county must adopt a resolution to accept all assets, liabilities and functions of the SPD to complete the dissolution. Greenville County Council Chairman Butch Kirven and other Greenville officials testified in support of the bill. Several SPD officials testified against H. 3726, but it is unclear why they oppose the measure when they cannot be forced to adopt a dissolution resolution.

Other Actions of Interest

Elective Shares - S. 94. This bill would allow a spouse to waive spousal protections after disclosure of the significance of the waiver. The Senate Judiciary Committee ran out of time this week and carried S. 94 over to next week.

Mortgage Satisfaction Error – H. 3033. This bill would provide for a method to reinstate a mortgage which was erroneously satisfied by the mortgagee. H. 3033 was given third reading in the House and is now in the Senate.

Mechanics' Liens – S. 511. A hearing was held this week on this legislation in a House Judiciary subcommittee. The Registers of Deeds and the Home Builders have been working on amendments. S. 511 was carried over until the next meeting to give the two sides a chance to develop the new language. Thanks to Debbie Gunter of Lexington County for her hard work.

Regulation of Adult Businesses – H. 3679. This legislation to impose statewide regulation on the operation of adult businesses was carried over in a House Judiciary sub-committee. SCAC appeared and requested a grandfather clause for existing ordinances and future flexibility for local governmental regulation in this area.

DUI Probation Monitoring – S. 333. This bill gives the judge the discretion of having the defendant wear an alcohol detection bracelet while on probation. The cost would be paid by the defendant, unless he is indigent—then it would be paid by the jurisdiction making the arrest from the jurisdiction's alcohol offense fines. The bill was given a favorable report by the Senate Judiciary Committee.

Priority Investment Act – S. 266. This bill allows local governments to set aside certain housing regulatory requirements as an incentive to encourage development of affordable housing in priority investment areas. The bill received a favorable report from the Senate Judiciary Committee and received second reading by the Senate.

Common Law Marriage – H. 3427 and S. 137. H. 3427 passed the House this week and has been sent to the Senate. The Senate Judiciary Committee gave a favorable report to S. 137 this week, and it is pending second reading on the contested Senate calendar. Both bills would end the recognition of newly-formed common law marriages after June 30, 2008.

Eminent Domain Study Committee – The study committee did not meet this week. The House is not in next week, but the study committee could still meet.

Uniform Court Order and Enforcement – S. 13, S. 15 and S. 17. These three bills are national model acts which facilitate uniform treatment of child custody, domestic violence protection order registration and enforcement, and family support order registration and enforcement among the various states. All three bills received a favorable report by the Senate Judiciary Committee and are pending third reading in the Senate.

Indigent Defense Act – S. 446. This bill changes the indigent defense system structure to mirror the circuit solicitor's system by making circuit public defender employees county employees, and the county will be reimbursed by the public defenders offices for these expenses. S. 446 also codifies a budget proviso to prohibit reduction of county funding for indigent defense below the funding in the previous fiscal year. The Senate Judiciary Committee gave this bill a favorable report.

Presidential Primaries – S. 99. This bill authorizes the State Election Commission to conduct presidential primaries with the parties setting the date for the primaries, along with an amendment to increase the candidate filing fees and a new tax check-off to defray state expenses. This bill received a favorable report by the Senate Judiciary Committee.

Election Training Enforcement – S. 327. This bill requires members of a County Board of Voter Registration or Election Commission to be removed by the Governor, if they have not fulfilled the training provided by the State Election Commission. The Senate Judiciary Committee ran out of time this week and carried S. 327 over to next week.

What's Coming Up?

There will probably be no House subcommittee meetings next week, due to the recess.

The Senate may be in extended session to debate the Workers' Compensation Bill. The Senate committee schedule for next week will be posted to www.scstatehouse.gov late Friday afternoon.

The Senate Finance Committee has changed its schedule to make committee work on the budget begin Monday, April 9, and floor debate begin the week of April 24. The Conference Committee on the budget is expected to begin work on differences between the House and Senate budget plans and complete their work by May 17.

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. 3779 – prohibits a municipal, county or state agency from collecting a fee for the destruction of records where a charge against a person is discharged, dismissed, or the person is found innocent of the charge.

H. 3783 – reduces the biennial fee for the alcoholic beverage manufacturer's license from $50,000 to $1,000.

H. 3789 – establishes the S.C. Retiree Health Insurance Trust Fund and the S.C. Long Term Disability Insurance Trust Fund.

H. 3790 – prohibits a registered sex offender from living within a one-mile radius of a school.

H. 3791 – provides for a tax deduction for the cost of improvements made to real property.

H. 3792 – authorizes the publication of public or legal notices or advertisements through public notice web sites.

H. 3796 – provides for a tax deduction on retirement benefits attributable to service on active duty in the Armed Forces of the United States.

H. 3799 – amends the current Workers' Compensation laws. This is the House version of the Workers' Compensation Reform Act.

H. 3800 – provides that a reduction in population and a decline in the Consumer Price Index does not increase the property tax millage.

H. 3801 – provides for a biennial State General Appropriations Act.

H. 3804 – lifts the prohibition against holding two offices for commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside who hold another office.

H. 3810 – authorizes a 4 percent tax assessment ratio for owner-occupied residential property, if the owner lists the address on their driver's license or voter registration card and does not rent the property for more than 90 days per year.

H. 3812 – provides for a millage rate limitation to purchase residential development rights in undeveloped property near military installations to prevent additional residential development near those military installations.

H. 3816 – provides for a $5 daily occupation tax on the nonowner occupant of a vacation time-sharing unit.

H. 3819 – enacts the "Omnibus Coastal Property Insurance Reform Act of 2007."

Senate Bills

S. 617 – provides that a person who receives a traffic violation while operating a motor vehicle under a restricted driver's license may be fined up to $300 or imprisoned for up to 30 days.

Ratification of Acts

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

(R. 5) S. 146 – provides for the transfer of municipal or county law enforcement officers on a temporary basis to work within multi-jurisdictional task forces for the mutual aid and benefit of the participating jurisdictions.

(R. 9) S. 408 – prohibits a county's designation for job tax credit from being lowered in credit amount more than one tier in the following year as a result of the annual ranking and designation of counties by the Department of Revenue.

(R. 10) H. 3063 – ratifies the South Carolina constitutional amendment so that same sex marriages and civil unions are not recognized in this state.

(R. 12) H. 3226 – allows a public official involved in a conflict of interest to remain in office, if they comply with the recusal requirements; and allows an individual or business associated with the public official to represent a person before a local government entity.

(R. 19) S. 529– extends the time in which the Eminent Domain Study Committee has to produce its report and recommendations to April 17, 2007.

Issue 11-07 — March 23, 2007

Workers' Compensation Reform — S. 332

The Senate Judiciary Committee took up S.332, adopted about a dozen additional amendments and voted it out of committee with a favorable report. The bill took some major hits and is rapidly moving toward a bill that will provide no relief to employers. Listed below are the areas of concern, according to the County Workers' Compensation Trust, and how these issues were affected by the amendments:

The provision to shutdown the Second Injury Fund with no claims authorized for injuries occurring after July 1, 2008 was not affected by amendments.
The provision to remove a 50 percent rating to the back as conclusive proof of a permanent and total disability was amended to increase the amount of award, but does allow the employer to show that the injured employee is still able to work: a bad amendment, but not a killer.
The repetitive trauma provision was essentially gutted. If anything, this area is worse than the current law.
The provision to address the Ellison case (awarded permanent and total disability for a 20 percent leg injury based upon numerous, unrelated preexisting conditions) was watered down.

The Senate may begin floor debate as early as next week. This is expected to be protracted debate with numerous additional amendments offered.

SCDC Director Rejects Proposed Solution to County Inmate Quotas

Sen. Mike Fair put together a proposal that would permanently eliminate the backlog of state prisoners in local jails awaiting transfer into the state prison system. This $4.7 million package would have provided:

A "jail" within SCDC to accommodate up to 384 beds for newly-sentenced prisoners prior to processing at the SCDC Reception and Evaluation (R&E) Center;
An additional 256 beds at either Kirkland R&E or a currently vacant Broad River Road facility for processing newly-sentenced inmates; and
An additional 96 beds at the McDougall facility for "outflow" sentenced prisoners.

After numerous meetings between Sen. Fair's office and the SCDC director this week, the SCDC director rejected the offer, and Sen. Fair has taken it off the table. Sen. Fair's office has been diligently working to resolve this issue since January. This proposal was to be presented to the full Senate Finance Committee next week.

Please contact members of the Senate Finance Committee and let them know that: 1) SCDC does not have the legal authority to impose county quotas; 2) SCDC rejected a solution to the problem with funding from the subcommittee; and 3) SCDC has not acted in good faith to resolve this issue.

Please contact the Governor's Office, and express your frustration with the lack of cooperation from SCDC. SCDC is a cabinet agency.

Senate Finance Committees Working on Budget

Senate Finance subcommittees will finish their work on the budget next week. The Senate Finance Committee will begin their consideration of the budget bill on April 2, and floor debate is expected the week of April 16. Details of provisos are not readily available at this time.

GASB 45/OPEB — S. 462

A Senate Finance subcommittee took up S. 462 to allow the state to set up a vehicle for investing funds in the stock market to provide for the Other Post Employment Benefits (OPEB) for state employees and school teachers. Generally, OPEB refers to health care programs and/or coverage provided by the employer for employees after retirement. By investing in the stock market, a higher rate of return could be earned, lowering the amount of unfunded liability for payments to be made in the future. As originally drafted, S. 462 did not allow participation by counties and cities in the state's investment authorization. SCAC offered an amendment to allow local governments to invest their funds along with the state funds in order to earn a higher interest rate. Both the bill and the SCAC amendment were discussed by the subcommittee and carried over to the next meeting for further study.

RV and Boat Assessment Ratios — S. 139

A House Ways and Means subcommittee took up S. 139 this week. Originally, the bill dropped the assessment ratio for property taxes from 10.5 percent to 6 percent for camper trailers equipped with a kitchen, bed and toilet. The subcommittee amended the bill with a provision to include boats as well. This is a mandatory reduction and is different than last year's legislation giving the county the option to reduce the assessment ratio. The total fiscal impact of these two changes is expected to be $5.9 million.

During the discussion, it was announced that an amendment would be offered to drop the assessment ratio for all boats and motors from 10.5 percent to 6 percent. The fiscal impact of that amendment is expected to be $16.5 million. This would be a permanent reduction in the tax base, and any increase in the millage rate to offset the loss would have to be under the millage rate cap passed by the General Assembly last year. Any millage rate increase caused by this change would also have to be combined with any millage rate to cover increases for existing or new services, but not exceed the millage rate cap.

Legal Residence Ratio Criteria — S. 422

The Senate Finance Committee held a meeting on S. 422 to allow a homeowner a safe harbor of 90 days to rent their home without loss of the 4 percent legal residence assessment ratio, so long as they could show either a voter registration or driver's license for the claimed address and personal property tax listings for that address. Homes rented for longer than 90 days would be on a case-by-case basis. The Finance Committee did propose an amendment to allow access to the applicant's Schedule E of the federal tax return for verification. The change from the current 14-day safe harbor provision is retroactive for tax years beginning after 2004, and refunds may be applied for until July 1, 2009. S. 422 is pending second reading on the Senate calendar.

Traffic Offense Diversion Program — H. 3572

H. 3572 would allow first-time traffic offenders to apply to the solicitor's office to enter an alternative program which would require driver education and/or public service work. The offender would then have charges dropped, and no infraction would appear on their record. H. 3572 currently holds state agencies 100 percent harmless from court fine assessment revenue loss. SCAC has asked that local governments be held harmless for the loss of fine revenue, as well. The solicitors have offered a proposal to hold counties harmless for 20 percent of fine revenue loss, while keeping state agencies at the 100 percent level. The House Special Laws Subcommittee ran out of time to consider H. 3572 further and carried over further consideration until its next meeting. Members of the Special Laws Subcommittee are: Reps. Ben Hagood, Garry Smith, Walt McLeod, Karl Allen and Catherine Ceips. H. 3572 will be before the subcommittee again next Wednesday at 9 a.m.

Millage Rate Limitation for FY 2008

On Thursday, the U.S. Census Bureau released the county population estimates from the past fiscal year, one of the two components (the other being the CPI average from CY 2006) that make up the millage rate limitation prescribed in § 6-1-320(A) as amended by the General Assembly last year. The CPI to be used for this year's budget is 3.2 percent plus the percentage increase in your county's population from FY 2005 to FY 2006. Please see the far right column of the attached spreadsheet for your total millage rate limitation for FY 2008. Please note that for purposes of the millage cap, if your population decreased, you are deemed to have "0.0" population growth. Therefore, your millage rate limitation will be 3.2 percent, the CPI ONLY.

SCAC mailed a memo on Thursday with a spreadsheet that contained errors. We are resending the memo today with the corrected spreadsheet. We apologize for any inconvenience.

Other Actions of Interest

Property Tax Constitutional Amendment Ratification - S. 153. This bill ratifies the constitutional amendment passed by voters last November. S. 153 was given a favorable report by a House Ways and Means subcommittee this week and will be on the next Ways and Means Committee meeting agenda.

Mortgage Satisfaction Error – H. 3033. This bill would provide for a method to reinstate a mortgage which was erroneously satisfied by the mortgagee. H. 3033 was amended in House Judiciary Committee to provide a clear reference to the recording fee and provide a form. The bill is pending second reading on the House calendar.

Voting Centers – H. 3147. This legislation establishes a pilot project to allow for voting centers where a voter from any precinct can vote on election day. The House Judiciary Committee recommitted the bill to the Election Laws Subcommittee.

DNA Samples – H. 3255 and S. 142. Both of these bills require DNA sampling upon arrest for a felony charge, although S. 142 requires it to be a felony with a 5-year sentence. The House Criminal Laws Subcommittee adjourned debate on both bills until next week.

Plain Language – H. 3286. This bill requires the use of plain language communications by each state and local emergency, fire, and law enforcement agency. The bill received a favorable report from a House 3M subcommittee.

EMT Background Check – H. 3304. This legislation would require a criminal background check prior to employment as an EMT. Existing EMTs would be required to obtain a background check prior to the renewal of their license. H. 3304 received a favorable report from a subcommittee of the House 3M Committee.

Common Law Marriage – H. 3427 and S. 137. H. These bills would prohibit recognition of new common law marriages after Jan. 1, 2008. H. 3427 received a favorable report from the House Judiciary Committee and is pending second reading on the House calendar. S. 137 is still on the Senate Judiciary Committee agenda.

Eminent Domain Study Committee – H. 3633 and S. 529. These bills extend the deadline for the Eminent Domain Study Committee's report. S. 529 was recalled from the House Judiciary Committee to the House floor. It extends the deadline for the report to April 17, 2007. The Study Committee will meet again on March 29.

Affordable Housing Trust Fund – H. 3509. This bill would allow a local government to create and operate a local housing trust fund or a regional housing trust fund. H. 3509 was amended to grandfather the housing trust fund that is currently operating in Charleston and will be on the next Senate LCI Committee agenda.

Indigent Defense Act – S. 446. A Senate Judiciary subcommittee reported S. 446 out favorably this week. The bill changes the indigent defense system structure to mirror the circuit solicitor's system. S. 446 makes circuit public defender employees county employees, but the county will be reimbursed by the public defenders offices for these expenses. S. 466 codifies a budget proviso to prohibit reduction of county funding for indigent defense below the funding in the previous fiscal year.

Condemnation Tax Credits – H. 3015. This bill allows a person to avoid condemnation of their property for sidewalks and foot/bike trails by agreeing to accept property tax or income tax credits in lieu of cash payment. A House Ways and Means subcommittee gave it a favorable report and it will be on the next House Ways and Means Committee agenda.

Accommodations/Hospitality Bond Authorization – S. 524. A Senate Finance subcommittee carried over S. 524 for further study. S. 524 authorizes counties and cities to issue revenue bonds to be paid for with accommodations and hospitality tax revenue. This allows local governments to use bonds which are cheaper to issue and service, instead of a lease purchase mechanism, to build tourism-related projects.

What's Up Next Week?

Senate Judiciary Committee. The Senate Judiciary Committee agenda for Tuesday was not yet posted at the time of this writing, but is expected to include the bills it did not get to this week because of the lengthy Workers' Compensation debate. Those bills include: S. 392 on immigration, S. 137 on common law marriage, S. 333 on DUI monitoring, S. 266 to enact the Priority Investment Act, S. 267 and H. 3456 on abandoned mobile homes, S. 94 on elective share in probate court, S. 327 to enforce election official training and S. 13, S. 15 and S. 17 to adopt uniform interstate laws on child support, domestic violence orders and child custody.

Adult Businesses – H. 3679. The House Judiciary General Laws Subcommittee will take up H. 3679 to regulate adult business operations next Wednesday at 9 a.m.

Reimbursement for Officer Training – H. 3326. This legislation requires reimbursement of training expenses to a governmental entity from which an officer is hired by another governmental entity within two years of completing training. H. 3326 will be before the House Judiciary Special Laws Subcommittee next Wednesday at 9 a.m.

SPD Dissolution – H. 3726. This bill would allow a special purpose district to dissolve itself by resolution and transfer its operations, assets and liabilities to the county, if accepted by the county through resolution. H. 3726 will be before the House Judiciary Special Laws Subcommittee next Wednesday at 9 a.m.

Joint Authority Water and Sewer Systems – H. 3711. This bill amends the Joint Municipal Water Systems Act in numerous areas. H. 3711 will be before the House Judiciary Special Laws Subcommittee next Wednesday at 9 a.m.

There may be more House committee and subcommittee meetings next week which are posted to the web after the Friday Report goes to press. Senate meetings are generally posted to the web after 3 p.m. on Friday. The listing can be found at www.scstatehouse.gov. Click on the meetings link in both the Senate and House portions of the home page for listings.

Newly-Introduced Legislation

House Bills

H. 3740 – revises the manner in which coroner vacancies are filled, and authorizes a coroner to appoint investigators and deputies at their discretion.

H. 3747 – allows the Department of Revenue to issue a temporary license to allow the on-premises possession, sale and consumption of alcoholic liquors by the drink in those county areas which collect a minimum of $450,000 in one fiscal year in revenues from the State Accommodations Tax.

H. 3749 – allows a taxpayer who qualifies for the job development credit—and who is located in a multi-county business or industrial park—to receive a credit equal to the amount designated to the county with the lowest development status of the counties containing the park in certain circumstances.

H. 3751 – provides for the creation of a small employer health group cooperative.

H. 3762 – authorizes the establishment of an account in the State Treasury consisting of sales and use tax revenues attributable to the deletion of an exemption; and that this revenue upon application must be distributed to coastal municipalities and counties and used to maintain salt water quality in SAA waters near channels used by ships in intercoastal trade and foreign commerce.

H. 3763 – exempts from the property tax 62 percent of the fair market value of a watercraft and its motor, if it is not attached to the watercraft.

H. 3770 – enacts the "Senior Protection Act."

H. 3771 – allows a sheriff, deputy sheriff or sheriff's clerk to practice law.

Senate Bills

S. 588 – provides for the creation and operation of small employer health groups.

S. 589 – provides restrictions on a captive insurance company taking credit for reserves on risks or portions of risks ceded to reinsurers.

S. 590 – creates local regional correctional facilities that are controlled by local governments.

S. 591 – authorizes a resident of this state to withdraw proceeds from a tax-deferred plan without taxes or penalties, if all of the funds are contributed to a charitable, education, religious or eleemosynary organization within 60 days of withdrawal.

S. 604 – enacts the "South Carolina Restructuring Act of 2007."

Ratification of Acts

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

(R. 10) H. 3063 – ratifies the South Carolina constitutional amendment, so that same sex marriages and civil unions are not recognized in this state.

(R. 5) S. 146 – provides for the transfer of a municipal or county law enforcement officer on a temporary basis to work within multi-jurisdictional task forces for the mutual aid and benefit of the participating jurisdictions.

(R. 9) S. 408 – provides that a county's designation for job tax credit may not be lowered in credit amount more than one tier in the following year as a result of the annual ranking and designation of counties by the Department of Revenue.

Issue 10-07 — March 16, 2007

House Passes Budget Bill — H. 3620

The House began debate on the 2007-08 budget bill Tuesday, and debate on Wednesday went until 10:30 p.m. Very few floor amendments were adopted, and second reading was given Thursday. Third reading is expected next Tuesday. The bill fully funds the Local Government Fund according to the statutory formula. Those amendments of interest to counties include the following:

Part 1A, Section 17 – increases the per capita distribution to public libraries from $2.00 to $2.25, and grants a minimum of $60,000 per county

Proviso 72.new – exempts all counties which collect more than $900 in state accommodations tax revenue from Sunday retail sales regulations commonly referred to as "Blue Laws."

Proviso 72.new – requires the clerk of court to give a 10-day notice, by either e-mail or U.S. mail, to the attorney of record or a pro se individual that the court roster is available on the internet.

Workers' Compensation Reform - S. 332

SA Senate Judiciary subcommittee took up the last of nearly 60 amendments and voted S.322 out as amended. S. 322 was taken up briefly by the full Judiciary Committee that afternoon and carried over. The bill is a major improvement over the current law; however, opponents are already chipping away at it. It will be on the Senate Judiciary Committee agenda next Tuesday. The concerns expressed by the management of the County Workers' Compensation Trust have all been addressed:

The Second Injury Fund will be shutdown with no claims authorized for injuries occurring after July 1, 2008.
A 50 percent injury to the back would no longer be deemed a permanent and total disability. An employer could show that the injured employee was still working.
Repetitive trauma would be more difficult to prove when the injury is related to the aging process (degenerative disc disease, arthritis, etc.).
The bill also addresses the Ellison case which awarded permanent and total disability for a 20 percent leg injury based on numerous, unrelated preexisting conditions.

Please contact members of the Senate Judiciary Committee, and ask them to support the bill as passed by the subcommittee without further amendment. A committee roster is attached.

Senate Finance Subcommittees Working on Budget

Subcommittees of the Senate Finance Committee have been holding hearings on the budget bill even before the House has finished its floor debate. The agency of most interest to have a hearing this week was the Budget and Control Board. At these hearings, there is a presentation by the agency and questions from subcommittee members, but no definite decisions are generally announced.

Immigration — S. 392

AS. 392 requires every public sector employer to participate in the federal work authorization program, and requires every service contractor to also participate in the federal work authorization program for contracts worth more than $15,000.

The amendment defines a service contract as one that involves the performance of labor, if the labor cost exceeds 30 percent of the total cost or exceeds 5 percent of the total contract price. An amendment allows acceptance of a valid driver's license or other DMV-issued ID as proof of status. The bill also requires anyone applying for public benefits to verify that they are a legal resident. Finally, it authorizes SLED to negotiate a Memorandum of Understanding between the state and the federal government concerning the enforcement of federal immigration and custom laws to include training officers to enforce these laws. It was once again carried over by the Senate Judiciary subcommittee to address several other amendments.

Abandoned Mobile Homes — H. 3456 and S. 267

The Senate Judiciary Committee has both H. 3456 and S. 267. S. 267 was on the Senate Judiciary Committee agenda, but was not taken up this week. Current proposals allow for an owner or a local government to petition a magistrate for an Order of Removal. Costs of removal are to be borne by the owner of the mobile home. A lien may be placed on a landowner's property, if the costs are not paid. A $25 fee per mobile home may be assessed by the local government when the home is registered in the county. SCAC has requested to amend the draft to allow for the nulla bona of uncollectible taxes.

Legal Residence Ratio Criteria — S. 422

The Senate Finance Committee held a meeting on S. 422 to allow a homeowner a safe harbor of 90 days to rent their home without loss of the 4 percent legal residence assessment ratio, so long as they could show either a voter registration or driver's license for the claimed address and personal property tax listings for that address. If a homeowner rents his home for more than 90 days, it would be a case-by-case determination. The amendment requested by SCAC at the subcommittee hearing was deleted from the bill, and S. 422 was given a favorable report. The change from the current 14-day safe harbor provision is retroactive for tax years beginning after 2004, and refunds may be applied for until July 1, 2009.

Eminent Domain and Bad Neighbor Bill

There were no meetings of the Eminent Domain Study Committee this week. The next meeting will be March 29. SCAC has not seen any new language or proposals. Issues discussed in the March 9 issue of the Friday Report remain before the committee. H. 3633 to extend the report date of the study committee will be before the House Judiciary Committee next week.

Other Actions of Interest

Waiver of Elective Share - S. 94. This bill would allow a spouse to waive spousal protections, after disclosure of the significance of the waiver. S. 94 received a favorable report from a Senate Judiciary subcommittee and will now go to the full committee.

Common Law Marriage – S. 137. This legislation to discontinue the allowance for common law marriages entered into after June 30, 2008, was on the Senate Judiciary Committee agenda but was not reached before the committee adjourned. It should appear on the agenda again next Tuesday.

Attorney Fiduciary Privilege – S. 502. This bill would make communications between an attorney and a fiduciary privileged, and the privilege could not be waived by a successor fiduciary. S. 502 was carried over in a Senate Judiciary subcommittee over concerns for the protection of the beneficiary. The legislation was carried over to an unspecified time.

Smoking Ordinances – S. 103. The amendment adopted last week to allow local governments to adopt and enforce smoking ordinances was reconsidered and deleted from S. 103 this week. The amendment would have brought about protracted debate and jeopardized the school grounds smoking prohibition. S.103 was given third reading and sent to the House.

Election Training Enforcement – S. 327. This bill requires members of a County Board of Voter Registration or Elections Commission to be removed by the Governor, if they have not fulfilled the training provided by the State Election Commission. This bill was on the Senate Judiciary Committee agenda, but was not reached before the committee adjourned.

Presidential Primaries – S. 99. This bill authorizes the State Election Commission to conduct presidential primaries with the parties setting the date for the primaries, along with an amendment to increase the candidate filing fees and a new tax check-off to defray state expenses. This bill was on the Senate Judiciary Committee agenda, but was not reached before the committee adjourned.

Attorney Fee Awards Against Governmental Entities – S. 490. This bill would amend §15-77-300 of the code to require that any fee awarded "be limited to a reasonable hourly rate." S. 490 was carried over in a Senate Judiciary subcommittee this week. The issue is how to define "reasonable."

What's Up Next Week?

There may be more House committee and subcommittee meetings next week, which are posted to the web after the Friday Report goes to press. Senate meetings are generally posted to the web after 3 p.m. on Friday. The listing can be found at www.scstatehouse.gov. Click on the meetings link in both the Senate and House portions of the home page for listings.

Voting Centers – H. 3147. This legislation establishes a pilot project to allow for voting centers where a voter from any precinct can vote in person on election day. H. 3147 is on the House Judiciary Committee agenda next Tuesday.

Common Law Marriage – H. 3427. This bill would abolish recognition of new common law marriages after Jan. 1, 2008. H. 3427 will be before House Judiciary Committee next Tuesday.

Erroneous Mortgage Satisfaction – H. 3033. This bill would provide a method to reinstate a mortgage which was erroneously satisfied by the mortgagee. An amendment to provide a form and clearly indicate the filing fee is expected to be taken up. This bill is on the House Judiciary Committee agenda next Tuesday.

EMT Background Check – H. 3304. This legislation would require a criminal background check prior to employment as an EMT. Existing EMTs would be required to obtain a background check prior to renewal of their license. H. 3304 will be on a House 3M subcommittee agenda next Wednesday.

Traffic Ticket Diversion Program – H. 3572. 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. SCAC has asked for a hold harmless provision similar to what the bill provides for state agencies that receive fine assessment money. H. 3572 is before the House Special Laws Subcommittee next Wednesday.

Reimbursement for Training Expense – H. 3326. If the state or a political subdivision hires a trained law enforcement officer who satisfactorily completes the mandatory training, the hiring entity must reimburse the former employer for 100 percent of training costs and salary paid, if the officer is within one year of training completion. The reimbursement is for 50 percent of costs, if the officer is within two years of training completion. H. 3326 is before the House Special Laws Subcommittee next Wednesday.

DNA Samples – H. 3255 and S. 142. Both of these bills require DNA sampling upon arrest for a felony charge, although S. 142 requires it to be a felony with a 5-year sentence. These bills are before House Criminal Laws Subcommittee next Wednesday.

DUI Revisions – H. 3496. This bill rewrites much of the code relating to DUI offenses, including the elements of the crime, procedures for enforcement and penalties. This bill is before the House Criminal Laws Subcommittee next Wednesday.

Newly-Introduced Legislation

House Bills

H. 3698 – prohibits an insurer from selectively limiting its insurance offerings in South Carolina.

H. 3701 – provides that the General Assembly shall annually by joint resolution impose a statewide millage on all real and personal property subject to property tax in this state for the purpose of raising revenue for public school operations, and exempts 100 percent of the fair market value of all real and personal property subject to property tax from property tax millage imposed by a school district for school operations.

H. 3702 – provides a property tax exemption for residential property consisting of four or fewer units in amounts of fair market value sufficient to equal an assessment ratio of 4 percent on the property.

H. 3703 – provides for the continuous alcohol monitoring of a person convicted of a second or sub-sequent offense of operating a motor vehicle while under the influence of alcohol, drugs or an illegal substance.

H. 3709 – directs the General Assembly to affirmatively appropriate funds for the State Highway Fund and the Non-Federal Aid Highway Fund in the annual General Appropriations Act to the Department of Transportation in the same manner that general fund revenues are appropriated for the operations of cabinet agencies.

H. 3710 – provides that under the targeted jobs tax credit provisions, in a county designated "moderately developed" which is contiguous to at least four counties designated "distressed" or "least developed," the credit allowed is one tier higher than the credit for which the county would otherwise qualify.

H. 3711 – enacts the "Joint Authority Water and Sewer Systems Act."

H. 3726 – authorizes the governing body of a special purpose district to voluntarily dissolve itself and transfer its assets and liabilities to a county, if accepted by resolution of its governing body.

Senate Bills

S. 562 – enacts the "Debt Collection and Personal Property Recovery Act."

S. 563 – provides for the mandatory dismissal of charges by a court of prosecution for a dishonored check upon restitution.

S. 564 – provides for the allocation of excess payments on a mortgage to reduce the principal amount of the underlying obligation.

S. 565 – provides that the statutory right to appraisal pursuant to application to the court must not be waived by a debtor, maker, borrower, guarantor or other obligor; and provides that a creditor who elects to seek a personal judgment on the underlying debt, instead of a foreclosure on the mortgage, may recover only the difference between the statutory appraised value and the amount due on the debt.

S. 566 – provides for a joint resolution to appropriate contingency reserve fund revenues.

S.567 – enacts the "Joint Authority Water and Sewer Systems Act."

S.569 – provides that the dismissal of a driving under suspension charge based on an out-of state violation also applies to in-state and out-of-state violations; and that for fourth and subsequent offenses, each violation constitutes a separate offense.

S. 575 – exempts from property tax the dwelling of an otherwise eligible surviving spouse of a person, who but for the residency requirements, would have been eligible for the dwelling exemption allowed certain disabled veterans, law enforcement officers, firefighters, and allowed the surviving spouse of such person who died in the line of duty, and allowed paraplegics and hemiplegics.

S. 576 – authorizes the revision and addition of certain voting precincts in Greenwood County.

S. 577 – authorizes a magistrate to punish by a fine, imprisonment, or both, for all assaults and batteries against sports officials and coaches.

S. 582 – enacts the "South Carolina Workers' Compensation Guaranty Association for Captive Insurers Act."

S. 584 – enacts the "Family Court Financial Privacy Act."

Issue 09-07 — March 9, 2007

Eminent Domain and Bad Neighbor Bill

The Study Committee met this past Wednesday and continued work on this bill. Most of the discussion centered around two issues:

How much notice and what kind of notice individual land owners should receive about pending eminent domain, zoning and permitting actions. SCAC argued that county-wide mailings for updates in comprehensive plans or wide-scale zoning implementation was cost-prohibitive and unnecessary; and
How to compensate a landowner whose land value was adversely impacted by a zoning change. The favored approach was to use a 5-year tax credit to compensate for taxes paid at a higher value. SCAC argued that it would hinder zoning changes, especially in counties who are just considering implementing zoning. We also pointed out that with the tax cap, local governments would not have the ability to compensate for such proposals.

Both issues will be on the table when the Committee convenes again on March 29.

House to Take Up Budget

Next Tuesday, the House will begin debate on the budget. The House will work on the budget, until work is completed. This means there will be no House committee or subcommittee meetings next week. If you have questions about a proviso or funding line in the budget, please contact the SCAC staff at 1-800-922-6081. A list of provisos and funding items relating to counties was published in the Feb. 23 edition of the Friday Report.

Workers' Compensation Reform - S. 332

After a brief discussion at the committee level, this bill was returned to subcommittee to take up the large number of proposed amendments. The subcommittee members are Sens. Martin, Chairman; McConnell; Hutto; Lourie and Richie. The subcommittee spent about three hours on the bill on Thursday afternoon, carrying over many of the amendments. The subcommittee has scheduled another meeting for Tuesday morning, and Chairman Martin is still optimistic that he can get the bill through the Senate in time for the House to take it up this year. It is clear that the opposition to this bill is well-organized and is doing everything it can to slow it down. Please contact members of the subcommittee, and tell them we need this bill moved onto the Senate floor as quickly as possible.

Cell Phone Towers — H. 3302

SCAC met with industry representatives in an effort to work out issues in this legislation. Progress was made in several areas—including giving a local government more time to approve requests for towers, removal of abandoned facilities, expansion of existing facilities and replacement of the same. SCAC insisted and received tentative agreement that all existing ordinances will be grandfathered. No agreement was reached on whether local governments could forbid the location of cell towers in residential areas. The bill remains in a House LCI subcommittee.

Traffic Offense Diversion Program — H. 3572

H. 3572 is similar to what the House adopted last year. First-time traffic offenders would be allowed to apply to the solicitor's office to enter an alternative program which would require driver education and/or public service work. The offender would then have charges dropped, and no infraction would appear on their record. SCAC testified as to the fiscal impact of this provision on fine revenue, which defrays court system expenses, and asked for a hold harmless provision similar to that in the bill for state agencies that receive fine assessment revenue. The House Judiciary subcommittee ran out of time to consider H. 3572 further and carried over further consideration until its next meeting.

Legal Residence Ratio Criteria — S. 422

A Senate Finance subcommittee held a hearing on S. 422 to allow a homeowner a safe harbor of 90 days to rent their home without loss of the 4 percent legal residence assessment ratio, so long as they could show either a voter registration or driver's license for the claimed address and personal property tax listings for that address. If a homeowner rents his home for more than 90 days, it would be a case- by-case determination. SCAC asked for a technical amendment to ensure that the assessor could still require the usual documentation on the question of domicile; and the subcommittee adopted that language and gave S. 422 a favorable report. The change from the current 14-day safe harbor provision is retroactive for tax years beginning after 2004, and refunds may be applied for until July 1, 2009.

Office Vacancies and Dual Office Holding — H. 3278

This bill creates a mechanism to declare vacant and fill appointed and elected offices, when the holder moves outside the boundaries of the district or has taken another office in violation of the dual office holding provision in the constitution. The officeholder is required to notify the presiding officer within 15 days of moving outside his district, and the office is then filled according to the manner of original selection.

If information comes to the presiding officer from a source other than the office holder, the information is forwarded to the State Election Commission. The Election Commission notifies the office holder, and there is a public hearing. A vote is then taken by the Election Commission as to whether he has vacated his office. If the vote is negative, the officeholder continues in office. If the vote is positive, the office is declared vacant and the presiding officer is informed. The vacancy is then filled in the manner of the original selection for the remainder of the term. H. 3278 received a third reading and is currently in Senate Judiciary Committee.

Other Actions of Interest

Ethics Conflicts - H. 3226. This legislation adopts the position that no public official or employee would be required to resign for a conflict of interest, so long as notice of the possible conflict is given and recusal requirements of §8-13-700(B) are followed. It also takes out those parts of §§8-13-740(A)(4) and 8-13-740(A)(5) which require that a business associate of the public official or employee is prohibited from representing clients before that unit of government of which the public official or employee is a member/employee. The Senate gave H. 3226 third reading and returned it to the House for consideration of amendments.

Common Law Marriage – H. 3396. This is the legislation that includes "video" services in the Cable Franchise Act. It allows locals governments to receive fees for both cable and video franchises, and allows those in the "video" business to receive franchises through the state. It was reported to the Senate floor without amendment.

Attorney Fiduciary Privilege – S. 408. This bill provides that a county's designation for purposes of the jobs tax credit may not drop more than one tier in the following year, as a result of the annual ranking of counties by DOR. S. 408 was amended by the Senate with a federal tax conformity provision. The House concurred in that amendment, and S. 408 was enrolled for ratification.

Smoking Ordinances – H. 3452. This bill would extend the term of county veteran's affairs officers from two years to four years. During floor debate, the bill was tabled; then that vote was reconsidered. H. 3452 passed the House and is now in the Senate.

Election Training Enforcement – H. 3509. This bill allows a local government to create and operate a local housing trust fund or a regional housing trust fund. The bill received third reading in the House and now goes to the Senate.

Newly-Introduced Legislation

House Bills

H. 3620 – provides for the appropriations and revenues to meet the ordinary expenses of state government for the fiscal year beginning July 1, 2007.

H. 3621 – appropriates monies from the Capital Reserve Fund for FY 2006-07.

H. 3633 – extends the time in which the Eminent Domain Study Committee has to present its report and recommendations to the chairmen of the Senate and House Judiciary Committees and the Governor to March 30, 2007.

H. 3635 – gives the Family Court concurrent jurisdiction with Probate Court over protective proceedings involving minors and protective proceedings involving persons with other incapacities, if the incapacitated person is already before the Family Court in a pending matter.

H. 3639 – authorizes a county or municipality by ordinance to prohibit smoking in designated locations within its jurisdiction.

H. 3642 – provides that when a municipality annexes property in a county that has a land use or zoning policy, plan, regulation, or ordinance, the county density requirement must remain in effect for five years after the annexation if the municipality density allowance or regulations allow for greater density than the county allows.

H. 3648 – authorizes the governing body of a county by ordinance to impose a local motor fuel user fee not to exceed 1 cent per gallon.

H. 3649 – enacts the "Energy Freedom and Rural Development Act."

H. 3651 – enacts the "Public-Private Education Facilities and Infrastructure Act."

H. 3659 – provides that a state agency or local entity that does not receive the same amount of revenue from the excise tax as it did from the minibottle tax in FY 2004-05 receive the difference from the general fund within 30 days after the close of each quarter in a calendar year.

H. 3666 – enacts the "South Carolina Rural Infrastructure Act."

H. 3670 – repeals the Corporate License Tax.

H. 3671 – repeals the Corporate License Tax.

H. 3673 – imposes an additional license tax on each cigarette in an amount equal to $3.25 and eliminates the sales tax on food.

H. 3674 – enacts the "South Carolina Health Care Financial Recovery and Protection Act."

H. 3675 – enacts the "South Carolina Coastal Captive Insurance Act of 2007."

H. 3678 – provides that a judge may not issue a bench warrant for failure to appear, unless the solicitor files an affidavit to confirm that written notice of his intent to seek the warrant has been given to the defendant, his attorney and the bond surety company.

H. 3679 – regulates the hours of adult businesses.

H. 3680 – reduces the deadline for voter registration from 30 days to 21 days before the election.

H. 3681 – deletes the restriction that a ratio of one 16- or 17-year-old assistant poll manager may be appointed for every two regular poll managers appointed to work in any precinct.

H. 3682 – provides that a 17-year-old high school student be furnished with a voter registration form and be apprised of the importance of voting. Requires that a high school student be mailed a voter registration card before the first election when he is eligible to vote.

H. 3683 – allows for the creation of early voting centers.

H. 3684 – creates the Elections Study Commission to make recommendations to improve citizen-informed participation in the electoral process.

H. 3685 – creates a "short state ballot" which is a ballot with the names of candidates for federal and state constitutional offices and a "short county ballot" which would also include countywide offices.

Senate Bills

S. 524 – provides that the proceeds of accommodation fees, hospitality fees and state accommodation fees may be pledged as security.

S. 529 – extends the time in which the Eminent Domain Study Committee has to present its report and recommendations to the chairmen of the Senate and House Judiciary Committees and the Governor to March 30, 2007.

S. 530 – enacts the "Proviso Codification Act of 2007."

S. 538 – redesignates counties for job tax credits purposes as least developed, moderately developed, and developed, based upon the previous 12 months' average unemployment rate—and adjusts the amount of the credit for each new full-time job created.

S. 543 – authorizes a law enforcement officer operating a law enforcement vehicle outside his jurisdiction to stop and detain certain vehicles and their operators under certain circumstances.

S.545– prohibits members of the General Assembly from campaigning for judicial candidates within two years of the election.

S.548– provides that beginning July 1, 2007, emergency medical services personnel employed shall participate in the South Carolina Police Officers Retirement System.

S. 550– requires that a person applying for a license to sell beer and wine or alcoholic liquors must be a resident of the state for one year.

S. 553– provides that no chance meeting, social meeting or electronic communication may be used in circumvention of the spirit of the Freedom of Information Act.

S. 554– reduces the timeframe in which a public body must answer a Freedom of Information request from 15 days to 10 days.

S. 555– prohibits a public body from charging more than the prevailing commercial rate for copies of a public record.

S. 556– provides that when a public body goes into executive session, the presiding officer must state the specific purpose of the meeting, that no other matter may lawfully be discussed, and that no vote or straw poll may be taken.

S. 557– requires a public body to post the agenda for all regularly-scheduled meetings and any additions to the agenda must be posted.

Issue 08-07 — March 2, 2007

Eminent Domain and Bad Neighbor Bill

The committee will meet next Wednesday at 3 p.m. There was also discussion about moving the reporting deadline back a couple of weeks to facilitate more discussions.

The Study Committee Reached Consensus on Several Issues:

Who should exercise the power of eminent domain. Entities other than political subdivisions who do not supply essential services would need approval from the elected governing body governing their jurisdiction before entering into the eminent domain process. Certain state agencies would be exempt.
Planning jurisdictions would, where possible, conduct an ongoing review of the fiscal impact of land use policies. This would be updated every five years and would be in addition to the 10-year review of the Comprehensive Land Use Plan.
The committee approved in principle a uniform notice requirement that would ensure all parties receive notice of eminent domain. This would include the elements of certified mail, posting of property and news publications.

Issues carried over include:

A "reverse rollback." This is where a government would issue a tax credit, if a parcel is "down zoned" and loses value because of that action. The argument is that they have paid taxes on a higher value and thus should get some of that money back because of the "down zoning." The committee wanted to study this issue and to get a fiscal impact. There was particular concern on the impact of a county who zones for an initial time. This uses the tax values of the land instead of dueling appraisers for compensation beyond what the constitution currently provides.
A couple of committee members indicated that they wanted to discuss the Bad Neighbor concept at the next meeting, so that issue remains on the table.

This is a study committee, and they will report to the Legislature. This report will be the basis of future legislation. We encourage you to contact members of the committee to express any concerns that you might have. Study committee members and contact information are attached.

County Quotas for Sentenced Inmate Admissions to SCDC

On Wednesday, SCAC and other interested parties met with Sen. Fair to discuss possible solutions to the problems caused by SCDC's quota system for admitting sentenced prisoners into the state prison system. Also in attendance were Sens. Reese, Thomas and Land.

SCDC has proposed freeing 256 beds in its Reception and Evaluation (R&E) Center by relocating inmates and employees currently assigned to Intermediate Care Services to a vacant unit. They would also open two more units at Kirkland to add 300 beds. SCDC would then expand its capacity at the R&E Center for processing newly-sentenced inmates by staffing the equivalent of a second shift. They are requesting funds to provide additional beds at two of their prisons to more efficiently move persons from R&E into the state prison system.

All senators present were sympathetic to the counties' concerns and acknowledged that this is a state problem. Sen. Fair is committed to finding a solution quickly. The proposals listed above have a $4.2 million price tag. Please let your senators know the problems the quota system is causing in your county, and ask for their support in providing the funding needed to put this issue to rest once and for all.

Local Spending Limit Bill Filed — H. 3615

H. 3615 was introduced in the House on Thursday and would impose a very restrictive limitation on total expenditures by local governments, including counties. The restriction is significantly different and tighter than that the House recently passed for state government. H. 3615 has been referred to House Ways and Means Committee for consideration.

The restriction would limit total operational expenditures to the amount from the previous year increased by the percentage increase in the Consumer Price Index (CPI) plus the increase in the population of the jurisdiction. If the millage rate limitation in Section 6-1-320 provides a lower amount of revenue, then the lower limit applies. The spending limitation could be increased only upon a two-thirds vote of the entire governing body for a state of emergency declared by the Governor. At the conclusion of the emergency, the spending limitation would then be dropped back to pre-emergency levels.

Workers' Compensation Reform — S. 332

The Senate Judiciary subcommittee met every day this week to resolve differences between the original bill and a proposed lengthy amendment. Additional testimony will be taken next week, after the revisions are made available for study. It will be impossible to determine what changes have been made until a printed copy is available, but it appears that what will come out of subcommittee will be less favorable to employers than S. 332 as originally filed.

Cell Phone Towers — H. 3302

Immigration

In the House

Several immigration bills were considered before the House Judiciary Committee this week. While several of them were carried over, the following bills received a favorable report:

Immigration Services – H. 3025. This bill requires all non-attorneys providing immigration assistance services to be registered and obtain a license from the Secretary of State.

Immigration Study Committee – H. 3032. This bill creates a study committee to study appropriate enforcement of state and federal laws relating to the presence of illegal aliens in this state and to produce a report with recommended legislative changes no later than Jan. 1, 2008. The House gave third reading to H. 3032, and it is now in the Senate.

Immigrant Food Stamps – H. 3149. This bill requires that a person may not receive food assistance from the state, unless the person can verify that he or she is a legal resident of the U.S.

A House Judiciary subcommittee still has not taken final action on the House bill to adopt the federal work authorization program for public entities and contractors.

In the Senate

A Senate Judiciary subcommittee considered and carried over for additional study S. 392 this week. This bill requires every public sector employer to participate in the federal work authorization program and to require contractors with the public sector to register and participate in the federal work authorization program. It also requires that anyone applying for public benefits must verify that they are a legal resident. Finally, it authorizes SLED to negotiate a Memorandum of Understanding between the state and the federal government concerning the enforcement of federal immigration and customs laws to include training officers to enforce these laws.

Annexation Study

The House Judiciary subcommittee that held the annexation law public hearing has begun to consider which issues associated with annexation it will address. The subcommittee is not scheduled to take up this topic next week, but will make a long-term project out of considering which issues it wishes to consider and how to address them.

Other Actions of Interest

Abandoned Mobile Homes - H. 3456. This bill creates a process to allow landowners to remove and dispose of an abandoned mobile home on their property without paying current and delinquent taxes assessed against the home. The House amended H. 3456 to increase the notice requirements under the bill and further define what constitutes an abandoned mobile home, and then gave the legislation a third reading. The bill is now in Senate Judiciary Committee.

Erroneous Mortgage Satisfaction – H. 3300. A House Judiciary subcommittee gave a favorable report to H. 3033, allowing a lender which erroneously satisfies a mortgage to refile a mortgage lien. The subcommittee adopted a specific recording fee suggested by the registers of deeds (RODs) and is awaiting another proposal from the RODs and the S.C. Bankers Association to put a form with the specific contents in the statute.

DUI Probation Monitoring – S. 333. This legislation would give the judge the discretion of having the defendant wear an alcohol detection bracelet while on probation. The cost would be paid by the defendant, unless he is indigent, and then it would be paid by the jurisdiction making the arrest from the jurisdiction's alcohol offense fines. A Senate Judiciary subcommittee gave it a favorable report.

Veteran's Affairs Officers – H. 3452. This bill would extend the term of county veteran's affairs officers from two years to four years. It received a favorable report from the House 3M Committee.

Criminal Case Management – S. 143. Chief Justice Toal and the solicitors reached an agreement that they would begin to implement a case management system. The first step would be to gather information on all dockets. In the end, a case management order will be issued for each county. The legislation will be held in abeyance to give the parties time to research and work out agreements.

Common Law Marriage – H. 3427. A subcommittee reported H. 3427 to the full House Judiciary Committee without amendment. Common law marriages would not be recognized after Jan. 1, 2008, unless a court determines that they were in effect prior to Dec. 1, 2007. The bill would allow a probate judge to waive the marriage license fee for parties who are in a common law marriage between the effective date of the legislation and Jan. 1, 2008. The waiver is permissive.

SCAC Lobby Days Schedule

Tuesday, March 6 is the final scheduled Lobby Day. The following counties are scheduled: Florence, Greenville, Greenwood, Hampton and Williamsburg.

If you have not been able to attend previous Lobby Days, feel free to come this Tuesday. The program begins in the SCAC offices at 10:30 a.m. with a briefing on the issues scheduled for the week, and then adjourns for visits to the State House and legislative offices. These personal visits can be the difference in many different bills before the General Assembly which impact county government, and we have gotten a good deal of positive feedback from the contacts made on previous Lobby Days. If you were unable make previously scheduled Lobby Days, feel free to call Robert Croom at 1-800-922-6081 to see when we can schedule a briefing and support a State House visitation day for your county.

Newly-Introduced Legislation

House Bills

H. 3578 – renames the South Carolina Surface Water Withdrawal and Reporting Act the "South Carolina Water Withdrawal, Permitting, Use, and Reporting Act" and makes declarations regarding the state's regulation of riparian rights.

H. 3579 – enacts the "South Carolina Agricultural Assessment Reform Act of 2007."

H. 3580 – constitutional amendment creating a new classification of property for a large undeveloped tract of land that does not qualify for classification as agricultural use property, which would be assessed at 2 percent of its fair market value.

H. 3590 – enacts the "South Carolina Restructuring Act of 2007."

H. 3591– this legislation allows a taxpayer to retain the assessed value of his old residence, if he is over 55. The fair market value of the new residence is equal to or less than the old residence, and the new residence qualifies as owner-occupied within 24 months of the transfer.

H. 3592 – exempts from the property tax the value of a motorcycle owned or leased by and licensed and registered in the name of a disabled veteran of war.

H. 3595 – enacts the "South Carolina Law Enforcement Safety Act of 2007."

H. 3597 – states that a person who has not satisfactorily complied with an education requirement or an examination required for licensure and registration as a professional land surveyor may petition the board for an evaluation of his qualifications for licensure and registration as a professional land surveyor, based upon his relevant practical experience.

H. 3601 – requires the consent of the sheriff before municipal police jurisdiction maybe extended to unincorporated areas.

H. 3606 – prohibits the establishment of a polling place in a location that is gated, guarded, or where access is controlled by other than a polling place manager.

H. 3615 – places a spending cap of CPI plus population on local governments and school districts; and rolls back by one year the base year for purposes of a portion of the homestead exemption fund reimbursement to school districts.

H. 3627 – clarifies the method of determining and calculating payments of the homestead exemption fund reimbursement to school districts.

H. 3630 – provides that in the case of state employees, an employer may not pay for any part of the cost for the state employee's purchase of service credit under the retirement system except when such payments are pursuant to a retirement incentive plan.

Senate Bills

S. 499 – enacts the "South Carolina Coastal Captive Insurance Act of 2007."

S. 500 – provides for civil immunity from a loss resulting from certain documents relating to the administration of the law enforcement training council.

S. 501 – authorizes the issuance of a warrant without the endorsement of a magistrate in the county where a person charged with a crime resides or where he is located.

S. 503 – authorizes the issuance of a warrant without the endorsement of a magistrate in the county where a person charged with a crime resides or where he is located.

S. 504 – provides a procedure for adoption and modification of the Building Codes.

S. 509– authorizes captive insurance companies to write Workers' Compensation Insurance in this state, and authorizes an employer who self-funds Workers' Compensation coverage to write Workers' Compensation coverage directly through a captive insurance company.

S. 511– authorizes a person to file a mechanic's lien, only if they are first licensed as a residential builder or a specialty contractor.

S. 513– authorizes county health departments to use the fees they collect.

S. 514– authorizes the Budget and Control Board to devise and implement a schedule of annual base pay increases for classified state employees beginning in FY 2008.

S. 515– provides for a State Employee Pay – Career Incentive Plan.

South Carolina Association of Counties

In This Section

Friday Reports — March 2007