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Friday Reports — March 2008

Issue 12-08: March 28, 2008

Issue 11-08: March 21, 2008

Issue 10-08: March 14, 2008

Issue 9-08: March 7, 2008

(Back to Other 2008 Reports)

Issue 12-08 — March 28, 2008

Fire Sprinkler Property Tax Credits — S. 860

Although S. 860 was sent back to a Senate LCI subcommittee for more work, the subcommittee meeting was cancelled. Currently, the subcommittee amendment deletes the state income tax credit incentive to install sprinklers in commercial or residential structures and creates a property tax credit incentive. The property tax credit allowed would be 80 percent of the cost of the sprinkler system with no cap on the amount which could be spent on the sprinkler system. The credit would be applied against the owner's property tax liability owed to the entity providing fire service to the structure. The credit claimed in any one year could be up to 50 percent of the tax amount billed.

The fiscal impact to local governments is unknown, although clearly both open-ended and substantial. The smaller the budget, the larger the impact. The impact would not be known until after any sprinkler systems were installed—possibly after the budget is adopted—and would grow as more sprinkler systems are installed. Indications were that the subcommittee intended to continue to rest the fiscal responsibility of this bill upon local governments. This is a classic unfunded state mandate, which will be paid for by local property taxpayers. If the state decides to provide a tax subsidy for sprinkler installation, the state should provide a state tax credit instead of a local property tax credit.

Because the subcommittee did not meet, you will need to bring concerns about the fiscal impact upon local services directly to the attention of LCI Committee members. A Committee roster is attached.

Millage Rate Limitation County Population Figures Released

The Board of Economic Advisors (BEA) has slightly revised the millage rate cap figures released last week, and the revisions are attached. Section 6-1-320 limits the increase in the county millage rate to the average increase in the Consumer Price Index (CPI) plus the increase in population for the county. SCAC has additional information, including school district millage rate limitations on the Home Page.

Realtor Business Licenses — H. 4554

This bill was reported favorably to the House LCI Committee. It restricts business licenses on realtors to the broker in charge and confines the amount taxed to income gained within the boundaries of the local jurisdiction. Under the Home Rule Act, county business license taxes can only be collected from businesses in the unincorporated area and must afford a credit for gross revenues on which business license taxes have been paid in other jurisdictions. SCAC discovered a loophole that could allow businesses in newly-incorporated areas to avoid any taxation. Members of the LCI committee and committee staff are working with SCAC to fix this problem.

Innocence Project Evidence Retention — S. 429

The Senate Judiciary Committee considered this bill to create a procedure for inmates to apply for DNA testing to provide proof of wrongful conviction.

S. 429 requires the custodian of evidence (clerk of court, sheriff, solicitor) to preserve physical evidence until one year after a convicted person is executed or released from incarceration. Currently, evidence in criminal cases other than capital cases may be destroyed if unclaimed 18 months after sentencing. The committee carried the bill over one week to allow interested parties to work on several issues prior to the next committee meeting.

SCAC is working on a proposal with the Senate Judiciary Committee staff and other agencies that would require evidence in homicides and sexual crimes to be held: for the term of incarceration for guilty verdict cases; for the lesser of seven years or the term of incarceration for sentences after guilty or nolo contendere pleas; and until execution in capital cases. The custodian of the evidence could petition the court to dispose of evidence other than on that schedule. Obviously, storage of retained evidence is a major concern in S. 429. S. 429 will be before the Senate Judiciary Committee next Tuesday.

Senate Finance to Take Up Budget on Monday

Senate Finance budget subcommittees completed their work on the budget, and the Senate Finance Committee will begin work on Monday. The subcommittees have been focused on the difficult fiscal outlook this year, and very few new provisos have appeared. There has been no Senate discussion of state employee raises yet. The House-passed bill contained a 1 percent employee raise. The subcommittees have adopted the following provisos which passed the House:

New $5 Traffic Ticket Surcharge – Proviso 90.11. This proviso adds a $5 surcharge on all misdemeanor traffic tickets and non-moving violations. The revenue from the surcharge is for the Criminal Justice Academy. This proviso would mean that all magistrate court traffic tickets will have a 107.5 percent assessment, a $25 surcharge for law enforcement funding, and a $5 surcharge for the academy. A $50 ticket would become $133.75 after surcharges and assessments are added.

Mileage Reimbursement – Proviso 89.25. The reimbursement rate for standard mileage increases from 44.5 cents to 50.5 cents.

Failure to Remit Court Fine Reports – 76.14. This proviso states that if the State Treasurer receives an audit report from a county that contains a significant finding related to court fine reports to the State Treasurer's Office, the requirements of proviso 89.72 shall be followed if an amount due is specified. Proviso 89.72 is the assessment audit proviso, Proviso 72.75 last year. The requirements of 89.72 are as follows:

"If the error is determined to have been made by the county or municipal treasurer's office, the State Auditor shall notify the State Office of Victim Assistance for the crime victim portion and the chief administrator of the county or municipality of the findings and, if full payment has not been made by the county or municipality within ninety [90] days of the audit notification, the State Treasurer is directed to adjust the authority's aid to subdivisions funding in an amount equal to the amount determined by the State Auditor to be the state's portion."

If an amount due is not specified, new proviso 76.14 authorizes the State Treasurer to withhold 25 percent of all state payments to the county until the estimated deficiency has been satisfied. Additionally, the proviso states that if a county is more than 90 days delinquent in remitting monthly court fines, the State Treasurer shall withhold 25 percent of state funding for that county until all monthly reports are current. After 90 days, the funds being held by the Treasurer's Office will be made available to the State Auditor to conduct an audit of the entity for determining an amount due, if any.

Act 388 Assessable Transfers of Interest (ATI) or Point of Sale Revisions

There are a number of groups and individuals interested in revising the provisions in Act 388, which create a point of sale revaluation of properties that transfer ownership. Under Act 388, when an "assessable transfer of interest" (ATI) occurs, the full fair market value of the property is placed on the tax rolls and the 15 percent cap applies from that time forward, until there is another ATI. There are discussions about doing away with the revaluation of real property when it is sold. However, there is no introduced bill at this point in time, and staff has seen no written proposal.

Because this issue was not addressed by the SCAC Legislative Committee, the SCAC Board of Directors was sent a memo on the issue in February and polled as to what SCAC's position should be. As a result of that vote, the position of SCAC is no position. SCAC will report on this issue when it is introduced and debated, but will take no active role in the debate. Staff will be happy to address questions about the status of any bill when it is introduced, but will not advocate for or against the proposal.

There's a BAT in the House — H. 4887

H. 4887 is this year's big annual tax (BAT) bill. The bill is 60 pages long with 55 different sections. We anticipate that it may be heard in subcommittee as early as next week. There are several sections of the bill which were requested by SCAC. However, staff needs timely comment and input about any concerns on the remainder of H. 4887. Attached is a table of contents for the subject matter of the sections of H. 4887. Please contact the SCAC staff as soon as possible with any comments or thoughts you have on the provisions in this bill.

OPEB Constitutional Amendment — S. 463

A House Ways and Means subcommittee took up S. 463 to amend the state constitution to allow the state and its political subdivisions to invest their Other Post Employment Benefits (OPEB) funds in equity investments (stocks). An amendment was adopted by the subcommittee to allow independent local government pools, such as SCAC is currently organizing, similar investment authority. S. 463 was given a favorable report, as amended, and is on the House Ways and Means Committee agenda next Tuesday.

Retirement System Guaranteed COLA — H. 4673

A House Ways and Means subcommittee took up the Cost of Living Allowance (COLA) Task Force's proposal addressing increases in retiree benefits to offset inflation. H. 4673 amends the Task Force's proposal by standardizing all retirement systems—state employees, police, judicial and General Assembly retirees—with the 2 percent guaranteed COLA. State Treasurer Converse Chellis and the Retirement System explained that, except for the police officers retirement system (PORS), the proposal could be funded by adopting an 8 percent assumed return on investments (ROI) of the state's retirement funds. A 0.5 percent increase in the employer's contribution would be required to fund the PORS 2 percent guaranteed COLA. The COLA would guarantee a COLA up to 2 percent each year, instead of the current 1 percent guarantee, and put this guaranteed COLA in the other retirement systems.

There was agreement by the members to support the bill. The bill was carried over until Tuesday morning for members to review an amendment unrelated to the State Retirement System or PORS. The bill will probably be on the agenda of the House Ways and Means Committee on Tuesday afternoon.

Other Items of Interest

Probate Court Jurisdiction – S. 1068. A Senate Judiciary subcommittee gave a favorable report to S. 1068. After the subcommittee amendment, the bill increases probate court jurisdiction for minor settlements from $25,000 to $50,000; increases the amount of annual distributions to a minor not requiring court approval from $10,000 to $25,000; and retains the direct appeal to the Court of Appeals. The rationale for the minor distribution increase was inflation since adoption of the statute, which has not been adjusted in 20+ years.

Combined Registration and Election Boards – S. 1106. The Senate gave second reading to S. 1106 without amendment. This bill is an effort to combine county registration and election boards in a constitutionally sound manner. The bill codifies numerous local acts that were used to combine boards without making substantive changes to existing structure in each county.

Personal Property in Probate – S. 16. This bill to clarify ownership of personal property in an estate with a surviving spouse was carried over by a Senate Judiciary subcommittee.

Landfill Regulations – Both of these regulations are in the possession of DHEC, which stops the running of the time period after which they become approved. R. 1114 (Super Reg) was returned to DHEC to amend the notice requirements. York County had a concern that a county was not involved early enough in the permitting process. This is being addressed. The demonstration of need (DON) regulation has not been reported back to the legislature. SCAC has been working with DHEC to ensure that the counties have the opportunity to interpret their land use regulations and ordinances in permitting consistency determinations. This will not only give the counties input in the location, but will also involve counties at the front end of the application process. An applicant has to demonstrate that the project is consistent with local ordinances and local solid waste plans at the time of the application.

Adult Businesses – H. 3679. A House Judiciary subcommittee gave this bill a favorable report. The bill would require adult businesses to close between 12 a.m. and 6 a.m. The bill provides for criminal penalties. SCAC is concerned that H. 3679 may preempt existing ordinances which are more stringent.

Electronic Recording Act – H. 3451. This bill provides for the electronic recording of land title documents in the RODs' offices. H. 3451 has been taken off of the Senate Judiciary Committee agenda for this week, and probably next week, in order to allow Senate bills to get through the Senate prior to the May 1 procedural deadline for bills to cross to the other chamber.

SPD Dissolution – H. 4578. This amendment to the S.C. Constitution permits local legislation to abolish special purpose districts (SPDs). The House adjourned debate on the bill this week, and it is pending third reading on the contested calendar. Because debate has been requested on this bill, there may be an attempt to amend it on the House floor. Please contact your house member, and ask that H. 4578 remain unamended.

Municipal Annexation – H. 3642. The House Judiciary Committee adjourned debate on this bill—due largely to the fact that while there are continuing discussions among the parties, no common ground has been reached. SCAC will not support any liberalization of annexation, unless it incorporates the elements of our legislative agenda.

Smoking Ban – S. 103. This bill would prohibit smoking in public places, except in certain prescribed areas. A House Judiciary subcommittee amended the bill by removing the local government preemption language. S. 103 was recommitted to subcommittee to await a decision from the Supreme Court on the two cases currently before them.

State Spending Caps – S. 718 and S. 1220. This is the constitutional amendment to cap state spending and the statutory implementing language. The Senate Judiciary Committee included no provisions addressing local governments and adopted a mechanism to smooth state revenue spikes to avoid large swings in state revenue available for appropriation. Both bills were given a favorable report by the Senate Judiciary Committee and have now been sent to the Senate Finance Committee for further review.

Removal of Roads from the State System – S. 981. A Senate Transportation subcommittee has recommended an amendment which would require county approval before a road could be removed or placed in the county road system. The bill now goes to the Senate Transportation Committee.

Tethering Dogs – S. 833. This legislation would prohibit the tethering or otherwise restraint of dogs. The bill was further amended to allow local government to enact more stringent ordinances; however, local ordinances can only impose a civil punishment. S. 833 applies to all animals except poultry, animal husbandry practices, pet shops, exhibitions and shows. The bill has passed the Senate and is now in the House.

Disabled Veteran Motorcycles – H. 3592. This bill amends 12-37-220(B)(3), which currently allows a disabled veteran to exempt two automobiles from property tax, to also allow an exemption for a motorcycle. A House Ways and Means subcommittee reported the bill out favorably.

Highway Funding and the HEF – H. 4665. This legislation puts the money not expended after all school districts have been reimbursed from the Homestead Exemption Fund into the Non-Federal Aid Highway Account and a reserve account. Under current law, the money would be used to provide a property tax credit against county taxes. A House Ways and Means subcommittee adjourned debate on the bill.

Appeals of Property Tax Assessment to County Council – H. 3079. This legislation would allow a taxpayer to appeal to county council the removal of the agricultural use classification. Currently, appeals go to the board of assessment appeals. The bill required the payment of attorney's fees, if the taxpayer prevails. A House Ways and Means subcommittee continued this legislation.

Boat Situs – H. 4685. This bill states that a boat not used in interstate commerce is subject to taxation in this state, if it is present in the state for a total of 180 days. Current time requirements are 60 consecutive days or 90 non-consecutive days in a year to become subject to S.C. property tax. A House Ways and Means subcommittee reported this bill out favorably this week. This issue is also addressed in H. 4887 (BAT bill).

Mini-bottle Hold Harmless – S. 951. This bill holds harmless state agencies and local entities which received mini-bottle tax revenues for alcohol education, prevention and other purposes. A House Ways and Means subcommittee reported the bill out favorably.

School Sales Tax – H. 4883. This legislation would allow a local option sales tax to be imposed for educational capital improvements. The tax may be imposed in the county upon the adoption of a resolution by the school district and a favorable referendum result. The tax may only be imposed by a school district whose boundaries are the same as the county. The revenues may be shared with higher education for capital improvements on campuses. A House Ways and Means subcommittee reported the bill out favorably.

Closed Plant Personal Property – S. 1171. As amended, S. 1171 allows manufacturing machinery in a closed plant to be property tax exempt. A manufacturer not under a fee agreement would return personal property as non-taxable, if the property is in a plant which is closed for one fiscal year and the personal property has not been used in operations for one fiscal year. The personal property becomes taxable at the earlier of its operation in a manufacturing process or four years. This bill was reported out of Senate Finance Committee and is pending third reading in the Senate.

Jobs Tax Credit – S. 1217. This legislation revises the Jobs Tax Credit. The current five levels of Jobs Tax Credit are combined into three. Because S. 1217 has no fiscal impact, it is apparent that there is some change in the amounts of credit. A Senate Finance subcommittee reported the bill out favorably.

Residential Improvement Districts (RIDs) – H. 4745. This bill is based upon the county improvement districts in Chapter 35 of Title 4, which allows assessments to finance public infrastructure and improvements. A House Ways and Means subcommittee made numerous technical amendments and gave H. 4745 a favorable report. It will be on the House Ways and Means Committee agenda Tuesday.

Affordable Housing TIFs – H. 4743. This bill allows publicly- and privately-owned affordable housing to be the focus of a Tax Increment Financing District (TIF). H. 4706 was given a favorable report and will be on the House Ways and Means Committee agenda next Tuesday.

'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 the 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. Just fax the enclosed form, or follow 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. 4868 – A county, by ordinance, may postpone for a second year implementation of countywide appraisal and equalization programs of real property value for property tax purposes.

H. 4875 – Provides an enhanced Job Tax Credit for companies that establish or expand their headquarters in this state, expands the definition of project under fees in lieu of tax provisions to include an airplane in the county or using an airport if the county consents, and provides three methods for verifying a county's approval for the transfer of a Fee in Lieu of Taxes agreement.

H. 4876 – Amends provisions of the state retirement system laws to comply with IRS requirements regarding employee benefits, employer contributions and other related matters pertaining to participating in the system and system procedures. It also eliminates the application of SC Regs. 19-900 through 19-997 to the operation of Title 9.

H. 4881 – Creates a new ranking factor for the Targeted Jobs Tax Credit, based upon property tax millage imposed in a county for school operations and debt service for schools, and provides a method for calculating this new school millage factor.

H. 4882 – Amends magistrate court rules by repealing the sections relating to the time for serving a complaint and relating to an offer of judgment.

H. 4883 – Creates the "Education Capital Improvements Sales and Use Tax Act" by allowing a 1 percent local sales and use tax to be imposed in a county for not more than 15 years, upon referendum approval, for public school capital improvements. Revenues are to be apportioned to the school districts—as well as to technical colleges, state colleges or universities located in the county—for specific capital improvements.

H. 4887 – Creates the latest version of a BAT bill that contains various tax credit and tax exemption provisions.

H. 4890 – Provides that every construction, demolition and land-clearing debris landfill permitted by DHEC after June 30, 2008 must have an operable fire hydrant within 200 feet of the entrance to the landfill.

H. 4892 – Provides an income tax incentive for home builders constructing high performance energy-efficient homes, and prevents local governments from prohibiting the installation of a solar energy heating or cooling system in a residential home.

H. 4898 – Provides that a person applying for a marriage license who does not have a Social Security Number or Alien ID Number may present other documentation, such as a Work Visa, as proof that the person is legally in the U.S.

Senate Bills

S. 1226 – Provides an enhanced Job Tax Credit for companies that establish or expand their headquarters in this state, expands the definition of project under fees in lieu of tax provisions to include an airplane in the county or using an airport if the county consents, and provides three methods for verifying a county's approval for the transfer of a Fee in Lieu of Taxes agreement.

S. 1227 – Adds Clarendon County to the list of counties that have both a register of deeds and a clerk of court.

S. 1232 – Creates the "Education Capital Improvements Sales and Use Tax Act" by allowing a 1 percent local sales and use tax to be imposed in a county for not more than 15 years upon referendum approval for public school capital improvements. Revenues are to be apportioned to the school districts—as well as to technical colleges, state colleges or universities located in the county—for specific capital improvements.

S. 1234 – Provides an income tax incentive for home builders constructing high performance energy-efficient homes, and prevents local governments from prohibiting the installation of a solar energy heating or cooling system in a residential home.

S. 1242 – Creates the S.C. Taxation Realignment Commission to do a comprehensive study of the state's tax system and submit a report of recommended changes to the General Assembly by Jan. 1, 2010.

S. 1243 – Provides an exemption for state-imposed sales and use tax on tangible personal property sold or leased to public schools and public school districts. The exemption does not apply to local sales and use tax administered by the Department of Revenue.

Issue 11-08 — March 21, 2008

Repeal of Home Rule Constitutional Provision — S. 1105

The Senate Judiciary subcommittee decided to carry over S. 1105 on an indefinite basis to form a Blue Ribbon Panel to study the issue of special purpose districts and local boards and commissions over the interim. The subcommittee mentioned exploring a statutory general law approach with multiple forms which could be adopted for entities such as registration and election commissions. SCAC has offered to assist the Senate in this effort.

Thanks to all of the county officials who made calls, wrote letters, supported resolutions and came to the State House. It makes a difference in the debate when you become actively involved. It is important to contact the members of the General Assembly again, to thank them for this more deliberate approach to the concerns about special purpose districts and entities created by local acts.

Fire Sprinkler Property Tax Credits — S. 860

The Senate LCI Committee sent S. 860 back to subcommittee for more work, with the stipulation that it would be back on the full committee agenda in two weeks. Currently, the subcommittee amendment deletes the state income tax credit incentive to install sprinklers in commercial or residential structures and creates a property tax credit incentive.

The property tax credit allowed would be 80 percent of the cost of the sprinkler system with no cap on the amount which could be spent on the sprinkler system. The credit would be applied against the owner's property tax liability owed to the entity providing fire service to the structure. The credit claimed in any one year could be up to 50 percent of the tax amount billed.

There was almost no conversation about the property tax credit aspect of the subcommittee amendment. The issue causing the debate was the restriction on tap fees for water systems and the effect on the ability for rural water systems to provide service to current and future customers. Under the current subcommittee amendment, tap fees—including recurring fees—for sprinkler systems service charged by public and private utility providers would be capped at actual costs.

There remains no estimate of the fiscal impact to local governments on this proposal, although clearly the end result is both open-ended and substantial. Indications were that the subcommittee intended to continue to rest the fiscal responsibility of this bill upon local governments. This is a classic unfunded mandate, that will be paid for by property taxpayers. If the state decides to provide a tax subsidy for sprinkler installation, the state should provide a state tax credit instead of a local property tax credit.

Recreation SPD Dissolution — S. 977 and H. 4754

A Senate Judiciary subcommittee took up and carried over S. 977 this week. The announced plan was to amend H. 4754, a similar bill on the contested Senate calendar, with whatever agreement could be reached. The first amendment was to §6-11-2010, which is the dissolution process applicable to all SPDs, to reduce the petition requirement to 15 percent of district residents (down from 40 percent) and the referendum requirement to a majority (instead of a supermajority). The next amendment was to strike the language of S. 977 and add the House-passed language on recreation district dissolution from H. 4754. The Municipal Association has asked for an amendment to require that the recreation district become a special tax district instead of a department of county government.

Millage Rate Limitation County Population Figures Released

The Board of Economic Advisors (BEA) has released county by county population change figures, and they are attached. If your county population change is a negative number, it is counted as zero for purposes of calculating the millage rate limitation in §6-1-320. Section 6-1-320 limits the increase in the county millage rate to the average increase in the Consumer Price Index (CPI) plus the increase in population for the county. The BEA previously announced the CPI increase to be 2.8 percent. Please see the attached memo and spreadsheet [Note: this attachment was revised on March 28, 2008].

Other Items of Interest

Jail Recodification – S. 590. The Senate adopted the committee amendment and gave it second reading. This is the recodification project the Local Detention Study Committee worked on for over a year. Sen. Fair has worked very hard behind the scenes to get S. 590 through the Senate in time for the House to take it up this year. Now is the time to begin asking members of the House to get S. 590 scheduled for a House Judiciary subcommittee hearing.

Combined Registration and Election Boards – S. 1106. A Senate Judiciary subcommittee gave a favorable report to S. 1106 without amendment. This bill is an effort to combine county registration and election boards in a constitutionally sound manner. The bill codifies the numerous local acts which have been used to combine these boards without making substantive changes to existing structure in each county.

Truth in Spending – S. 1144. S. 1144 would require state agencies and political subdivisions to post certain salaries and all expenditures on the web for five years and update the data monthly with detailed explanations of the data. For entities without a website, the data would be transmitted to the Budget and Control Board for posting on a state website. A Senate Judiciary subcommittee carried over S. 1144 after receiving the fiscal impact statement from state and local entities. The S.C. Policy Council indicated that they wanted to testify at a later meeting to dispute the fiscal impact statement and support the bill.

Weapons Discharge Ordinances – S. 1039. This bill would prohibit local government ordinances that restrict a landowner from discharging a firearm on his property of 25 acres or more to protect people or property. SCAC was successful in getting an amendment to allow existing ordinances without the 25-acre exception to remain valid and otherwise enforceable. S. 1039 has passed the Senate and is in the House.

Parking Assessments – S. 88. S. 88 would prohibit surcharges on parking violations. The bill passed the Senate and is in the House.

Electronic Recording Act – H. 3451. This bill provides for the electronic recording of land title documents in the RODs' offices. H. 3451 is still pending action on the Senate Judiciary Committee agenda.

Auto Manufacturer's Tag Fee – S. 1137 and H. 4830. Both bills provide that in 2009 and 2010 the annual fee for the automobile manufacturer license plate will be $726, of which $20 goes to the state general fund and the balance of $706 goes to local governments. S. 1137 was sent back to committee in favor of using H. 4830, which was recalled from committee and passed by the Senate.

Common Law Marriage – H. 3427. This bill would cease recognition of new common law marriages entered into after Jan. 1, 2010. Efforts to cut off debate and force a vote on H. 3427 failed again this week. The Senate then stripped the bill of its permanent guaranteed debate status to make room for other bills on the calendar and agreed not to take it up for debate again until April 10. Action on the bill on April 10 will determine whether H. 3427 passes or not. Sen. Martin has worked hard for passage of this bill.

Water District Sewer Authorization – H. 3030. This bill allows rural water districts created pursuant to Chapter 13 of Title 6 to provide sewer service. It was amended to require provision of sewer service to be compatible with the county land use plan and that the district not duplicate the service of another entity. The bill now moves to the Senate Judiciary Committee agenda.

Innocence Project Evidence Retention – S. 429. A Senate Judiciary subcommittee considered this bill to create a procedure for anyone convicted of a criminal offense to apply for DNA testing of any biological material to provide proof of wrongful conviction. The bill would require the custodian of evidence to preserve physical evidence likely to contain forensic evidence— such as fingerprints, photos or DNA material—until one year after a convicted person is executed or released from incarceration. Currently, evidence in criminal cases other than capital cases may be destroyed, if unclaimed 18 months after the date the sentence was imposed. The subcommittee gave the bill a favorable report, although there will be a staff-level meeting to work on several issues prior to the full committee meeting.

Removal of Roads from the State System – S. 981. SCAC Staff is working with the Senate Transportation Committee staff to work out language requiring county agreement before any road mileage dropped from the state highway system is added to the county system. Current law allows the Department of Transportation (DOT) to trade less used roads to the county for more heavily traveled roads. This requires agreement between DOT and the county. S. 981, as originally written, would delete the need to swap or trade roads and permit the state to give a road to a county without taking one in return.

Tethering Dogs – S. 833. This legislation would prohibit the tethering or otherwise restraint of dogs. The bill was amended to remove references to time limits and better defines cruel or inhumane treatment. The bill was further amended to allow local government to enact more stringent ordinances; however, local ordinances can only impose a civil punishment. The Senate amended S. 833 to make it applicable to all animals, while providing an exception for animals used for agricultural purposes. The bill is pending third reading on the Senate calendar.

What's Coming Up Next Week?

Here are a few of the meetings of interest which have been scheduled for next week at the time this Friday Report was written. All of the meetings scheduled are posted to the web at www.scstatehouse.gov, as well as any changes to the meetings or agendas.

Tuesday, March 25

House Judiciary Committee – 2:30 p.m. in Blatt Building Room 516.

S. 103 – Clean Indoor Air Act. The main issue is whether local ordinances are to be preempted.

H. 3642 – Municipal annexation. This bill may become a vehicle for an as yet unpublished amendment with a revision to many municipal annexation procedures.

H. 3343 – Proof of citizenship to register to vote.

Wednesday, March 26

House Ways and Means Economic Development subcommittee – 1½ hours after adjournment in Blatt Building Room 321.

H. 4743 – Tax Increment Financing for Affordable Housing.

H. 4745 – Residential Improvement Districts for infrastructure financing.

House Ways and Means Property Tax subcommittee – 1½ hours after adjournment in Blatt Building Room 501.

H. 4665 – Highway Fund funding from the sales tax revenue surplus in the Act 388 sales tax increase.

H. 3079 – Ag use classification appeals route, attorney's fees for prevailing taxpayers and parcel aggregation.

House Ways and Means General Government subcommittee – 1½ hours after adjournment in Blatt Building Room 521.

H. 4673 – 2 percent guaranteed COLA for State retirees.

S. 462 – OPEB equity investment constitutional amendment.

Thursday, March 27

House LCI Real Estate subcommittee – 9 a.m. in Blatt Building Room 403

H. 4554 – Business license calculations for realtors.

House Judiciary Criminal Laws subcommittee – 9 a.m. in Blatt Building Room 516.

H. 3679 – Statewide regulation of adult businesses.

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. 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.

March 25 – Greenville, Greenwood, Oconee, Union

'Can't Wait to Get Your Friday Report Each Week, or Missed Your E-mail Version This Week?

Newly-Introduced Legislation

Senate Bills

S. 1208 – provides that a house owned by a qualified surviving spouse, acquired prior to or subsequent to the deceased spouse's death, is exempt from property taxes.

S. 1212 – creates a sales tax exemption for certain appliances that meet or exceed energy-efficient requirements under the Energy Star program. The exemption is effective from the first Friday in August through the following Sunday.

S. 1213 – authorizes a county and a municipality to create an improvement district comprised of noncontiguous parcels of land, and to use assessments for improvements located outside the boundaries of the district as well as for infrastructure and improvements related to new development.

Issue 10-08 — March 14, 2008

Repeal of Home Rule Constitutional Provision — S. 1105

Thanks to all the county officials who made calls, wrote letters, supported resolutions and came to the State House last Wednesday. It makes a difference in the debate, when you become actively involved. The S. 1105 subcommittee will meet again Wednesday, March 19, at 9 a.m. in room 105 of the Gressette Building. The subcommittee consists of Sens. Martin (Chair), Malloy, Campsen, Williams and Massey.

S. 1105 is a constitutional amendment repealing one of the cornerstones of the Home Rule Act adopted in 1973. It replaces the prohibition on laws for a specific county with another provision allowing acts of the General Assembly for a specific county if "(1) they are necessary to implement traditional state functions as determined by the General Assembly, or (2) concern entities created by legislative enactment passed prior to March 3, 1973...."

The Senate Judiciary subcommittee is drafting an amendment to further define "traditional state functions," as used in item 1 of S. 1105. Several subcommittee members wanted to read the language carefully when it is finished being drafted, so S. 1105 was carried over for further study on Wednesday.

Subcommittee members have said the most immediate concern they want to address is the number of local acts passed to consolidate the county voter registration board and county election commission into a combined entity. These boards have been combined in a number of counties, and the local legislation used to do so is constitutionally suspect. Using a constitutional amendment to address that issue creates the following concerns:

It will not cure the constitutional issues before this year's election; and
It will create new language to be interpreted by the Supreme Court, when there is already a method to address the problem without rising to a constitutional issue.

SCAC proposes two bills to resolve the issues addressed in S. 1105:

Bill #1 – Use a statewide statute to address combining county registration and election boards. One potential solution is to allow counties to select from a number of formats for combined registration and election boards in the statute. All other existing statutes relating to the functions and procedures these boards must observe and enforce would remain the same as they currently are in the statutes. Using statewide legislation on this topic will:

solve the problem in a legally defensible manner before this year's election;
avoid endangering the existing Home Rule provisions for counties; and
have greater odds of passage, because it would require a majority vote to pass instead of the two-thirds vote required for a constitutional amendment.

Bill #2 – Address the special purpose district (SPD) issues in S. 1105 in a separate statewide general law. The statewide general law would create a mechanism to allow for the modifications to SPDs called for in Item 2 of S. 1105.

The two bill approach allows the concerns raised to be addressed without endangering the county Home Rule constitutional provisions. Please contact your Senator, and share this approach with them.

Removal of Roads from the State System — S. 981

Current law allows the Department of Transportation (DOT) to trade less used roads to the county for more heavily traveled roads. This requires agreement between DOT and the counties. S. 981 would delete the need to swap or trade roads and permit the state to give a road to a county without taking one in return. There was not a subcommittee hearing on S. 981. The Transportation Committee agreed to carry the bill over, until it was clear that the county had to agree to accept a road from DOT before abandonment. Thanks to Sens. Leatherman, Short and Elliott (among others) for their insistence that counties be protected.

Fire Sprinkler Property Tax Credits — S. 860

The Senate LCI Committee will discuss S. 860 on Wednesday, March 19 at 9 a.m. The subcommittee amendment deletes the state income tax credit incentive to install sprinklers in commercial or residential structures and creates a property tax credit incentive. The property tax credit could not exceed 80 percent of the cost of the sprinkler system. The credit would be applied against the owner's property tax liability owed to the entity providing fire service to the structure. The credit claimed in any one year could not exceed 50 percent of the tax amount billed. Please see the attached editorial on this bill.

House Finishes the Budget

The House finished with the budget this week and sent the appropriations bill to the Senate. Very few changes were made from the Ways and Means version of the bill. The House will be on Easter recess next week.

The Local Government Fund was fully funded, in accordance with the statute. Please thank the members of the House for fully funding the Local Government Fund.

As in the version coming out of committee, most state agencies were forced to accept a 2.63 percent budget reduction. State employees were given a 1 percent salary increase, and the employee health insurance annualization and growth were funded.

The following are some provisos of interest considered by the House this week:

EFA Hold Harmless – Proviso 1.new. This proviso requires the State Treasurer to transfer from the Homestead Exemption Fund to the Education Finance Act Reserve Fund sufficient monies to provide each school district with state funding under the Education Finance Act at least equal to what the school district received in state funding under the act for FY 2007-08.

New $5 Traffic Ticket Surcharge – Proviso 90.11. This proviso adds a $5 surcharge on all misdemeanor traffic tickets and non-moving violations. The revenue from the surcharge is for the Criminal Justice Academy. This proviso would mean that all magistrate court traffic tickets will have a 107.5 percent assessment, a $25 surcharge for law enforcement funding, and a $5 surcharge for the academy. A $50 ticket would become $133.75, after surcharges and assessments are added.

Mileage Reimbursement – Proviso 89.25. The standard mileage reimbursement rate increases from 44.5 cents to 50.5 cents.

Expungement and Destruction of Criminal Records – Proviso 89.106. The House deleted the proviso to prohibit a county or state agency from collecting a fee for the destruction or expungement of records or processing of an application for destruction or expungement of records.

Failure to Remit Court Fine Reports – Proviso 76.14. This proviso states that if the State Treasurer receives an audit report from a county that contains a significant finding related to court fine reports to the State Treasurer's Office, the requirements of Proviso 89.72 shall be followed if an amount due is specified. Proviso 89.72 is the assessment audit proviso, Proviso 72.75 last year. The requirements of 89.72 are as follows:

"If the error is determined to have been made by the county or municipal treasurer's office, the State Auditor shall notify the State Office of Victim Assistance for the crime victim portion and the chief administrator of the county or municipality of the findings and, if full payment has not been made by the county or municipality within ninety [90] days of the audit notification, the State Treasurer is directed to adjust the authority's aid to subdivisions funding in an amount equal to the amount determined by the State Auditor to be the state's portion. . ."

If an amount due is not specified, new proviso 76.14 authorizes the State Treasurer to withhold 25 percent of all state payments to the county, until the estimated deficiency has been satisfied. Additionally, the proviso states that if a county is more than 90 days delinquent in remitting monthly court fines, the State Treasurer shall withhold 25 percent of state funding for that county until all monthly reports are current. After 90 days, the funds being held by the Treasurer's Office will be made available to the State Auditor to conduct an audit of the entity for determining an amount due, if any.

Other Items of Interest

Recreation SPD Dissolution – H. 4754. This bill addresses only countywide recreation districts and provides that they may, by resolution, transfer their functions to the county. The bill went without reference on the Senate calendar, where it is pending second reading.

Recreation SPD Dissolution – S. 977. A Senate Judiciary subcommittee heard testimony on S. 977 this week and carried it over. There was a request to adopt an amendment to make it mirror H. 4754. It is scheduled for another hearing next Wednesday at 9 a.m.

Weapons Discharge Ordinances – S. 1039. This bill would prohibit local government ordinances which restrict a landowner from discharging a firearm on his property of 25 acres or more to protect people or property. SCAC was successful in getting an amendment to allow existing ordinances without the 25-acre exception to remain valid and otherwise enforceable. S. 1039 is pending third reading on the Senate calendar.

Truth in Spending – S. 1144. S. 1144 would require state agencies and political subdivisions to post certain salaries and all expenditures on the web for five years and to update the data monthly with detailed explanations of the data. For entities without a website, the data would be transmitted to the Budget and Control Board for posting on a state website. There is a significant fiscal impact, although the statement has yet to be released; and there is no funding for costs. A Senate Judiciary subcommittee will consider S. 1144 next Wednesday at 9 a.m.

Landfill Regulations – S. 1114. In response to concerns raised by York County about getting adequate notice of a proposed landfill, the Senate Medical Affairs Committee ordered DHEC to withdraw and resubmit the regulations after addressing notice requirements. SCAC was in the process of addressing the same problems in a separate regulation. York County's request was well-reasoned and effective.

Municipal Annexation – H. 3642. This bill remains on the House Judiciary Committee agenda and will not be taken up for at least three weeks. Discussions continue among the parties concerning annexation. Topics covered (without agreement) included zoning shopping, municipal buffers for planning, just compensation and revenue retention. SCAC will not support any liberalization of annexation, unless it incorporates the elements of our legislative agenda.

DUI Probation Monitoring – S. 333. S. 333 gives the judge the discretion of having the defendant wear an alcohol detection bracelet while on probation. The cost (expected to be $10-12 per day) would be paid by the defendant, unless he is indigent, from fees charged to probationers. S. 333 was given third reading and is in the House Judiciary Committee.

Tax Bill Requirements – S. 865. S. 865 requires a tax bill to include the homestead exemption for taxpayers 65 years or older or disabled to reflect the homestead exemption granted for school operating purposes, the estimated value of this exemption, and the amount of any credit against the property tax liability for county operations on owner-occupied residential property attributable to an excess balance in the Homestead Exemption Fund. The Senate passed S. 865, and it is now in the House.

Candidate Drug Testing – S. 1070. After a spirited debate, this bill was reported out of the Senate Judiciary Committee. This is a constitutional amendment and would require all candidates for election to submit a drug test result at the time of filing. SCAC does not have a position on this bill. It will need a two-thirds vote in both houses before being placed on the ballot for voters. S. 1070 is pending second reading in the Senate on the contested calendar.

Parking Assessments – S. 88. S. 88 would prohibit surcharges on parking violations. The bill is pending third reading on the Senate calendar.
Electronic Recording Act – H. 3451. This bill provides for the electronic recording of land title documents in the RODs' offices. The Senate Judiciary Committee is expected to address H. 3451 next week.

Tethering Dogs – S. 833. This legislation would prohibit the tethering of dogs. The bill was amended to remove references to time limits, better defines cruel or inhumane treatment, and allows more stringent local ordinances enforceable by a civil fine. S. 833 is pending second reading in the Senate.

Water Withdrawal Permits – S. 428. This bill would create a regulatory framework for the use and withdrawal of water from public waterways and basins statewide. DHEC would be granted the permitting authority to allow users to withdraw water from rivers and lakes. The Senate LCI Committee has tentatively scheduled a public hearing next week to discuss adequate "minimum flow" of waterways. This would be the lowest level that users of water can withdraw under the permitting system. Several members of the committee are concerned that the bill, as written, would allow waterways to be drawn down to near zero.

Auto Manufacturer's Tag Fee – S. 1137 and H. 4830. Both bills provide that in 2009 and 2010 the annual fee for the automobile manufacturer license plate will be $726; of which, $20 goes to the state general fund and the balance of $706 goes to local governments. The Senate Transportation Committee gave S. 1137 a favorable report. H. 4830 has been referred to the Senate Transportation Committee.

Common Law Marriage – H. 3427. This bill would cease recognition of new common law marriages entered into after Jan. 1, 2010. There were several unsuccessful attempts to end the debate on the Senate floor by a cloture vote, so that a vote could be taken on the bill. The Senate adjourned debate for H. 3427 until next Wednesday. There will probably be another effort to end the debate and vote on the bill next week.

Immigration – S. 392. The conference committee for S. 392 met on Tuesday and had brief discussions. Since the House will be in recess the week of March 17, the next meeting will probably not occur until the week of March 24.

Water District Sewer Authorization – H. 3030. This bill allows rural water districts created pursuant to Chapter 13 of Title 6 to provide sewer service. An amendment prepared after work between Aiken County and Sen. Massey was proposed and discussed, but no action was taken. H. 3030 will be considered again by a Senate Judiciary subcommittee next Wednesday at 9 a.m.

Jail Recodification – S. 590. The Senate Corrections Committee gave a favorable report to S. 590 last week. The committee amendment is still being drafted, and S. 590 will probably appear on the Senate calendar next week. The only substantive change not previously reported upon is the addition of a provision previously passed by the Senate, which affects the calculation of sentences.

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.

March 18

March 25

'Can't Wait to Get Your Friday Report or Missed Your E-mail Version This Week?

Newly-Introduced Legislation

House Bills

H. 4847 – provides that in addition to a law enforcement officer, a county or municipal code enforcement officer may place a tag on a vehicle considered to be abandoned or derelict—regardless of whether it is on public or private property—giving a certain time frame for the vehicle to be removed or repaired or be subject to forfeiture to the state. Officers will be held harmless for removing or disposing of a vehicle unless their action is wilful, wanton or reckless.

H. 4848 – creates a S.C. Enterprise Information System that will, among other things, strengthen the relationship between state and local government by minimizing the burden and maximizing the utility of information created, collected, used, disseminated and retained by or for this state. Funds for this system are to be appropriated from the state general fund.

H. 4860 – revises the Targeted Jobs Tax Credit by reducing the classifications from four to three tiers and requiring an 80 percent vote of each house of the General Assembly to shift a county from one tier to another. This bill also deletes the increased county designation for counties within 25 miles of a military installation or federal facility that is closed or realigned.

H. 4863 – creates the "County Transportation Committee Enhancement Act of 2008" which requires that 25 percent of a county's "C" fund revenues derived from motor fuels user fees must be used for public transit needs, and up to 50 percent may be used for county roads, bridges, streets and traffic signs. The remaining proceeds from motor fuels user fees not otherwise allocated would go to the County Transportation Fund, instead of the State Highway Transportation Fund.

Senate Bills

S. 1200 – provides that in addition to a law enforcement officer, a county or municipal code enforcement officer may place a tag on a vehicle considered to be abandoned or derelict—regardless of whether it is on public or private property—giving a certain time frame for the vehicle to be removed or repaired or be subject to forfeiture to the state. Officers will be held harmless for removing or disposing of a vehicle unless their action is wilful, wanton or reckless.

Issue 9-08 — March 7, 2008

Repeal of Home Rule Constitutional Provision — S. 1105

The Senate Judiciary subcommittee on S. 1105 has scheduled a meeting on this constitutional amendment for Wednesday, March 12, at 9:30 a.m. in room 307 of the Gressette Building. The subcommittee consists of Sens. Martin (Chair), Malloy, Campsen, Williams and Massey.

S. 1105 is a constitutional amendment repealing one of the cornerstones of the Home Rule Act adopted in 1973. It replaces the prohibition on laws for a specific county with another provision allowing acts of the General Assembly for a specific county, if "(1) they are necessary to implement traditional state functions as determined by the General Assembly, or (2) concern entities created by legislative enactment passed prior to March 3, 1973...."

The explanation as to the need for S. 1105 is to address certain specific examples, such as voter registration and election boards or the devolution of the appointment authority for other boards or commissions—many of which have been combined or altered in some other way in conflict with the constitutional prohibition on single county local acts.

However, "traditional state functions," as used in item 1 of S. 1105, is extremely broad. Upon examination, the local acts adopted by the General Assembly prior to the Home Rule Act included: adoption of the county budget (then referred to as the county supply bill), setting hours of operation of county offices, providing which services the county would offer, providing for zoning, and any number of other topics commonly thought of as local decisions.

S. 1105 would reverse one of the cornerstones of the Home Rule Act. Without the constitutional prohibition on local acts, virtually no decision made by a local council would be exempt from reversal by a legislative delegation.

A more detailed explanation of S. 1105 and information is available in a separate Legislative Alert, which has been sent via e-mail and U.S. Mail and posted to the website.

SPD Dissolution

Constitutional Amendment – H. 4578. This legislation proposes an amendment to the South Carolina Constitution to permit local legislation to abolish SPDs. The bill received second reading in the House this week. When the bill goes to the Senate side, it will be ripe for amendments similar to S. 1105. It may be necessary to contact your Senator and ask that H. 4578 remain unamended.

Recreation SPD Dissolution – H. 4754. This bill addresses only county-wide recreation districts and provides that they may, by resolution, transfer their functions to the county. The bill makes allowance for the millage cap. H. 4754 was passed by the House this week, and it now goes to the Senate.

House to Consider the Budget Next Week

The House will begin considering the budget on the floor Tuesday at 10:30 a.m. The Local Government Fund (LGF) was fully funded in the Ways and Means version of the budget. Please contact your House members, and ask that they continue to fund the LGF at its statutory level. Most provisos of interest to counties can be found in the Feb. 22 Friday Report.

Municipal Annexation — H. 3642

In a surprise move, a House Judiciary subcommittee added H. 3642 to its agenda and reported it out. The bill states that if an area is annexed and the municipal plan for development is more dense than an existing county plan, the county plan will remain in effect for five years. This is an attempt to stop shopping for more favorable zoning or development regulations. H. 3642 will be used as the vehicle for liberalizing annexation. SCAC has participated in discussions, but has not agreed and will not agree to a liberalization of municipal annexation—unless and until several of our legislative priorities are placed in legislation.

Landfill Moratorium — H. 4762

A House Agriculture subcommittee took up H. 4762 to place a moratorium on construction and demolition (C&D) landfills, until DHEC promulgates new regulations governing these facilities. An amendment was adopted to ensure that the moratorium applied to pending applications for new landfills, but would not apply to expansions of existing C&D landfills. Because of time constraints, the subcommittee carried the bill over.

Solid Waste Regulations

SCAC has had calls concerning proposed solid waste regulations, and there are two which will govern landfills. The first is called the "Super Reg" and is concerned with applications and permitting. It seeks to streamline the application process without prejudicing the rights of parties. This is the regulation that is in the House Agriculture Committee and in the Senate Medical Affairs Committee (R 61 - 107.19). It is scheduled to be published in the State Register on March 25 and become effective on April 25 of this year.

The second regulation is the Demonstration of Need regulation (R. 61-107.17). It is this regulation that SCAC has been heavily involved in, because it contains the definition of consistency. SCAC wants the counties to determine if a proposed facility is consistent with local land use and zoning. We are in discussions with DHEC. This is the regulation that will govern the need for a landfill and will establish distances. This regulation has not been finalized. Most of the complaints received in this office concern the language and intent of this regulation and not the "super reg."

Other Items of Interest

Common Law Marriage – H. 3427. This bill would not recognize common law marriages after a certain date, unless a court determines that they were in effect prior to the date of the bill. Under special order on the Senate floor, this bill was amended to not recognize common law marriages after Jan.1, 2010. Debate on the bill was interrupted and will resume next week.

DUI Probation Monitoring – S. 333. S. 333 gives the judge the discretion of having the defendant wear an alcohol detection bracelet while on probation. The cost (expected to be $10-12 per day) would be paid by the state, unless he is indigent—then it would be waived. The bill was amended on the Senate floor to allow the state to charge a reasonable fee to the defendant for the cost of monitoring. The bill was given second reading.

Weapons Discharge Ordinances – S. 1039. A Senate Judiciary subcommittee amended S. 1039 to prohibit local government ordinances which restrict a landowner from discharging a firearm on his property of 25 acres or more to protect people or property. S. 1039 was given a favorable report as amended.

Weapons Discharge Ordinances – H. 4631. This bill would prohibit local government ordinances which restrict a landowner from discharging a firearm on his property of 25 acres or more to protect people or property. A House Judiciary subcommittee adjourned debate on this bill.

Homestead Application – S. 652. This legislation amends §12-37-250 to allow a person to apply for the homestead exemption in person at the auditor's office; by mail, when accompanied by a copy of documentation of age, disability or legal blindness; or by internet in those instances where the auditor has access to official records documenting the appropriate eligibility standard. The House Ways and Means committee gave a favorable report to S. 652.

Expungement – S. 110. S. 110 codifies a court order issued by the Chief Justice regarding expungement. The central difference between the Chief Justice's order and this legislation is that the bill would preclude any fee for an expungement within one year of a defendant being found not guilty or the charges being dismissed. There must be a notice to this effect on the bond notice or courtesy summons. The House adjourned debate on the bill this week, and it is pending second reading on the contested calendar. It is rumored that the provisions of S. 110 will be inserted into the Conference Committee report on H. 3623.

Proof of Citizenship to Vote – H. 3343. This bill would require a person to provide proof of citizenship when registering to vote. The House Judiciary Committee adjourned debate on the bill.

Tax Bill Requirements – S. 865. S. 865 requires a tax bill to include the homestead exemption for taxpayers 65-years-old and over—or those totally and permanently disabled or legally blind—and to reflect the homestead exemption granted for school operating purposes, the estimated value of this exemption, and the amount of any credit against the property tax liability for county operations on owner-occupied residential property attributable to an excess balance in the Homestead Exemption Fund. A Finance subcommittee and the Finance Committee reported this legislation out this week, and the Senate gave the bill a second reading.

Candidate Drug Testing – S. 1070. S. 1070 is a constitutional amendment to require candidates for elected office to submit a negative drug test result. The Senate Judiciary Committee carried over this bill until its next meeting.

Bail Denial – S. 1055. S. 1055 is a constitutional amendment to deny bail to repeat offenders. The bill was amended to add posing a risk to an individual as a factor in denying bail and was reported favorably.

School Resource Officers – H. 3776. A House Education and Public Works subcommittee adjourned debate on this bill for several reasons. One was that it would have required cities and counties to provide law enforcement officers as resource officers in all schools, but it wasn't clear if state funding would cover the cost.

Tethering Dogs – S. 833. This legislation would prohibit the tethering or otherwise restraint of dogs. The bill was amended to remove references to time limits and better defines cruel or inhumane treatment. The bill was further amended to allow local government to enact more stringent ordinances; however, local ordinances can only impose a civil punishment. The Senate Judiciary Committee reported the bill favorably.

Electronic Recording Act – H. 3451. This bill provides for the electronic recording and handling of land title documents in the ROD and clerk of court offices. H. 3451 is a collaborative effort among the Recorders of Deeds, title insurance companies, realtors and other parties. The realtors insisted on a separate bank account for any fee proceeds, and no fee agreement could be reached to defray start-up costs. However, some efforts are being made to get the equipment vendors to provide the necessary equipment free of charge to counties and to pass the costs on to private businesses who would use the service. H. 3451 received a favorable report from a Senate Judiciary subcommittee.

EMT Background Check – H. 4334. This bill requires a criminal background check before employment as an EMT or upon renewal of an EMT license. The House passed H. 4334, and it is in the Senate.

Smoking Ban – S. 103. This bill would prohibit smoking in public places, except in certain prescribed areas. A House Judiciary subcommittee amended the bill by removing the local government preemption language. The House Judiciary Committee adjourned debate on S. 103.

Immigration – S. 392. The conference committee on S. 392 is scheduled to begin substantive discussion on the bill Tuesday, March 11, at 10 a.m. in room 105 of the Gressette building. The conferees are Sens. Campsen, Sheheen and Ritchie, and Reps. Harrison, Delleney and Viers.

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.

March 14

March 18

March 25

'Can't Wait to Get Your Friday Report or Missed Your E-mail Version This Week?

Newly-Introduced Legislation

House Bills

H. 4797 – prohibits counties or municipalities from imposing a fee or seeking reimbursement for costs or expenses incurred as a result of responding to a motor vehicle accident.

H. 4798 – provides that the reimbursement a school district receives from the homestead exemption fund must be an amount reflecting the proportion of the population increase in that particular district under the total tier three reimbursement attributable to population increase, as determined by statewide population growth, but not less than the district received pursuant to this calculation for the prior year.

H. 4799 – provides for a constitutional referendum that would allow a county to use added incremental tax revenues from redevelopment projects—along with other public source funds—to be pledged for bonds to provide direct funding to private individuals, corporations and entities as an incentive to develop or improve affordable housing.

H. 4800 – provides for state government appropriations for the fiscal year beginning July 1, 2008.

H. 4801 – creates appropriations from the capital reserve fund for FY 2007-08.

H. 4814 – requires all elections boards and commissions to prepare one ballot for all elections when more than one election is conducted on the same day.

H. 4818 – authorizes the unclaimed lottery funds to be used to fund school districts negatively impacted by the lack of revision of the 2007 Final Index of Taxpaying Ability, and that Education Finance Act reserve funds be used only after the lottery funds are exhausted. Schools positively affected must direct their excess funds towards non-recurring allowable expenditures.

H. 4819 – creates a procedure for a local governing authority to collect fines associated with parking citations issued to vehicle owners by precluding registration renewal until the fine is satisfied, if the owner has been sent three notices of the unpaid citations and more than 60 days have passed since the citation was issued. Any fines collected by DMV must be placed in a special account to be distributed to the governing authority issuing the citation.

H. 4820 – provides a procedure whereby a governing authority can collect fines associated with parking citations issued to owners of rental vehicles by precluding registration renewal until the fine is satisfied, if the citation has not been paid after a period of 60 days and the rental company is notified within 45 days after the citation has been issued. Any fines collected by DMV must be placed in a special account to be distributed to the governing authority issuing the citation.

H. 4821 – sets a cap on general funds appropriations to the total general revenue fund estimate as of Feb. 15 for FY 2008-09, increased annually and cumulatively by the lesser of 6 percent or a percentage determined by population increases and increases in CPI. The cap may be suspended in a fiscal year for a specific amount, upon a special vote of the General Assembly.

H. 4822 – provides for a resolution requesting the Governor to request an extension from the U.S. Department of Homeland Security to comply with the federal REAL ID requirement for driver's licenses and identifications. The request would not require South Carolina to declare its intent to comply with the act. An extension request must be submitted on or by March 31, 2008. If no extension is requested, failure to comply with the requirements by May 11, 2008 will result in persons not being able to use their S.C. driver's license or identification card to board a commercial aircraft or enter a federal facility.

H. 4823 – provides for a resolution requesting the Governor to request an extension from the U.S. Department of Homeland Security to comply with the federal REAL ID requirement for driver's licenses and identifications. The request would not require South Carolina to declare its intent to comply with the act. An extension request must be submitted on or by March 31, 2008. If no extension is requested, failure to comply with the requirements by May 11, 2008 will result in persons not being able to use their S.C. driver's license or identification card to board a commercial aircraft or enter a federal facility.

H. 4829 – creates a sales and use tax exemption for tangible personal property sold or leased to public schools. This exemption does not apply to any local sales and use tax administered by the Department of Revenue.

Senate Bills

S. 1171 – provides that a manufacturer is not required to list or return personal property for purposes of ad valorem taxes until the reporting period in which the personal property becomes operational in a manufacturing process.

S. 1172 – provides that if a vacancy occurs in the county coroner's office more than one year before the next general election for coroners, the Governor shall appoint a person until a special election can be held. The chief deputy or second-in-command in the coroner's office shall act as coroner, until the vacancy is filled. If the coroner is suspended by the Governor for an indictment or other reasons, the chief magistrate of that county shall act as coroner, until the coroner is reinstated or a coroner is selected in the next general election—whichever occurs first.

S. 1179 – provides for a resolution requesting the Governor to request an extension from the U.S. Department of Homeland Security to comply with the federal REAL ID requirement for driver's licenses and identifications. An extension request must be submitted on or by March 31, 2008. If no extension is requested, failure to comply with the requirements by May 11, 2008 will result in persons not being able to use their S.C. driver's license or identification card to board a commercial aircraft or enter a federal facility.

S. 1180 – provides that closely-held business entities under shared control must be held to a single, maximum aggregate campaign contribution limit.

S. 1181 – provides that the Budget and Control Board's chief information officer is to provide a wireless cloud over all public school facilities and over a 10-mile radius surrounding the facilities, using the existing infrastructure.

S. 1182 – creates a study committee to look at the feasibility and benefits of the construction, operation and maintenance of transportation infrastructure using public private partnerships and ventures.

S. 1186 – provides that the reimbursement a school district receives from the homestead exemption fund must be an amount reflecting the proportion of the population increase in that particular district under the total tier three reimbursement attributable to population increase, as determined by statewide population growth, but not less than the district received pursuant to this calculation for the prior year.

S. 1189 – provides a procedure whereby a governing authority can collect fines associated with parking citations issued to owners of rental vehicles by precluding registration renewal until the fine is satisfied, if the citation has not been paid after a period of 60 days and the rental company is notified within 45 days after the citation has been issued. Any fines collected by DMV must be placed in a special account to be distributed to the governing authority issuing the citation.

S. 1190 – creates a procedure for a local governing authority to collect fines associated with parking citations issued to vehicle owners by precluding registration renewal until the fine is satisfied, if the owner has been sent three notices of the unpaid citations and more than 60 days have passed since the citation was issued. Any fines collected by DMV must be placed in a special account to be distributed to the governing authority issuing the citation.

South Carolina Association of Counties

In This Section

Friday Reports — March 2008