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The motion of Rep. CORNING to reconsider the vote whereby Amendment No. 58 was adopted was taken up.

Rep. JENNINGS moved to table the motion to reconsider, which was agreed to by a division vote of 53 to 50.

Reps. CLYBORNE, CROMER, STUART, H. BROWN, WALKER, KELLEY, HARRISON, BAKER, HARRELL, TOWNSEND, COOPER, BARBER, LAW, THOMAS, HUTSON, D. SMITH, A. YOUNG, VAUGHN, G. BAILEY, RISER, ROGERS, RICHARDSON, GAMBLE, WILKINS, WITHERSPOON, KLAUBER, HUFF, KEEGAN, R. SMITH, WOFFORD, STONE, CATO, MEACHAM and KOON proposed the following Amendment No. 3 (Doc Name L:\council\legis\amend\JIC\5549HC.94), which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, in Section 12-37-257, as contained in SECTION 1, page 4633-3, by inserting immediately after line 8:

/(E) Notwithstanding any other provision of law, projected revenue growth for a fiscal year must first be used to provide additional amounts necessary to fund the reimbursements required pursuant to this section."/

Amend title to conform.

Rep. CLYBORNE moved to table the amendment, which was agreed to.

Debate was resumed on Amendment No. 7, which was proposed on Wednesday, March 2, by Reps. CLYBORNE, et al.

Rep. CLYBORNE moved to table the amendment, which was agreed to.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION __. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-150. In addition to all other limitations on spending and beginning with state government spending for fiscal year 1994-95, total spending by the state government in a fiscal year may not exceed total state government spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor statistics of the United States Department of Labor. Total spending by the state government for purposes of this limitation is the total of all state government spending in a fiscal year from all sources of funds and for all purposes, but total state government spending does not include:

(1) spending of amounts attributable to revenue growth;

(2) spending derived from federal sources;

(3) spending for debt service and lease purchase payments;

(4) spending to offset a prior year deficit; and

(5) spending approved by the qualified electors of the state voting in a referendum held for this purpose."/

Renumber sections to conform.

Amend title to conform.

Rep. CLYBORNE explained the amendment.

Rep. TUCKER raised the Point of Order that Amendment No. 8 was out of order as it was not germane.

Rep. CLYBORNE argued contra the Point in stating that it was an appropriation by the state of South Carolina and was funding through the Aid to Subdivisions and was clearly germane.

Rep. McELVEEN stated that under Article X, Section 7, the General Assembly was already prohibited from exceeding the average growth rate of the economy in the State.

The SPEAKER stated that he could not rule it out of order on a constitutional basis of a more restrictive requirement of the Constitution, but he could rule out one that was more liberal. He further stated that the

Rep. GONZALES stated that the whole thrust of the Bill was spending caps for government whether local or state government and the amendment was germane to the intent and purposes of the thrust of the Bill.

Rep. BOAN stated that the purpose of the Bill was not to limit spending but it was property tax relief. He further stated that it was not germane to the title of the Bill.

Rep. HODGES stated, citing Rule 9.3, that no motion or proposition on a subject different from that under consideration shall be admitted unless it refers to the intent of the motion or proposition. He further stated that clearly the intent of the amendment related to limitations on local government spending and this extended it far beyond the original matter under consideration.

Rep. QUINN stated that the intent of the Bill was property taxes but it also was to pass on state funding for local issues and had an impact on this Bill.

Rep. HASKINS stated that the original intent of the Bill was property tax relief but Rule 9.3 specifically said that the amendment would be out of order unless it refers to the intent of the motion or proposition under consideration and the original Bill has been amended so that the intent was to impose spending limits on government and therefore, the amendment was in order because it directly related to the intent of the Bill under consideration at this time.

Rep. GONZALES stated that although the General Assembly does not currently by statute levy a property tax, they in fact are authorized to levy statewide a property tax constitutionally and this would act as a cap on a property tax levied by the State just as it does at the local level.

Rep. CLYBORNE stated that it was clearly germane because the entire property tax proposal was going to ultimately make its way back to the local level through the vehicle of a homestead exemption.

Rep. HASKINS stated that Sections 2, 3 and 4 of the original Bill were specifically dealing with limiting spending and that they did not refer to property taxes.

The SPEAKER stated that there was nothing in the Bill, in the original version or the amended version, that dealt with spending caps on state government and he sustained the Point of Order and ruled the amendment out of order.

Amend the Report of the Committee on Ways and Means, as and if amended, in Section 12-37-257, as contained in SECTION 1, page 4633-3, by inserting immediately after line 8:

/(E) Notwithstanding any other provision of law, projected revenue growth for a fiscal year must first be used to provide additional amounts necessary to fund the reimbursements required pursuant to this section."/

Amend title to conform.

The SPEAKER ruled Amendment No. 12 out of order as it was identical to a previous amendment, Amendment No. 3.

Rep. GONZALES proposed the following Amendment No. 21, which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, SECTION 2, page 4633-3, line 27, by striking /not previously taxed/ and inserting /not taxed prior to tax year 1994/.

Amend further, SECTION 3, page 4633-4, beginning on line 11, by striking /not previously taxed/ and inserting /not taxed prior to tax year 1994/.

Amend further, SECTION 4, page 4633-4, line 40, by striking /not previously taxed/ and inserting /not taxed prior to tax year 1994/.

Amend further, SECTION 5, page 4633-5, line 19, by striking /not previously taxed/ and inserting /not taxed prior to tax year 1994/.

Amend title to conform.

Rep. GONZALES moved to table the amendment, which was agreed to.

Rep. GONZALES proposed the following Amendment No. 22, which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, SECTION 2, page 4633-3, beginning on line 28, by striking /(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;/ and inserting:

/(2) spending of net fee revenues generated by income producing services or facilities in excess of the net fee revenues generated by the same services and facilities, if any, prior to fiscal year 1994-1995;/

/(2) spending of net fee revenues generated by income producing services or facilities in excess of the net fee revenues generated by the same services and facilities, if any, prior to fiscal year 1994-1995;/

Amend further, SECTION 4, page 4633-3, beginning on line 41, by striking /(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;/ and inserting:

/(2) spending of net fee revenues generated by income producing services or facilities in excess of the net fee revenues generated by the same services and facilities, if any, prior to fiscal year 1994-1995;/

Amend title to conform.

Rep. GONZALES moved to table the amendment, which was agreed to.

Debate was resumed on Amendment No. 24, which was proposed on Wednesday, March 2, by Rep. GONZALES.

Rep. GONZALES moved to table the amendment, which was agreed to.

Rep. GONZALES proposed the following Amendment No. 27, which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, SECTION 2, page 4633-3, beginning on line 24, by striking item (1) and inserting:

/ (1) spending in an amount not exceeding the amount represented by applying the county's tax millage for the most recently completed property tax year to:

(a) the greater of:

(i) the assessed value of new construction and improvements to existing property not taxed prior to tax year 1994, or

(ii) the assessed value of property in the county for tax year 1993, multiplied by the growth in the county's population since the end of tax year 1993, divided by the county's population at the end of tax year 1993, together with

(b) net growth in the assessed value of property in the county due to changes in the county boundaries occurring after the end of tax year 1993;/

/ (1) spending in an amount not exceeding the amount represented by applying the municipality's tax millage for the most recently completed property tax year to

(a) the greater of:

(i) the assessed value of new construction and improvements to existing property not taxed prior to tax year 1994, or

(ii) the assessed value of property in the municipality for tax year 1993, multiplied by the growth in the municipality's population since the end of tax year 1993, divided by the municipality's population at the end of tax year 1993, together with

(b) net growth in the assessed value of property in the municipality due to changes in the municipality boundaries occurring after the end of tax year 1993;/

Amend further, SECTION 4, page 4633-4, beginning on line 37, by striking item (1) and inserting:

/ (1) spending in an amount not exceeding the amount represented by applying the district's tax millage for the most recently completed property tax year to

(a) the greater of:

(i) the assessed value of new construction and improvements to existing property not taxed prior to tax year 1994, or

(ii) the assessed value of property in the district for tax year 1993, multiplied by the growth in the district's population since the end of tax year 1993, divided by the district's population at the end of tax year 1993, together with

(b) net growth in the assessed value of property in the district due to changes in the district boundaries occurring after the end of tax year 1993;/

Amend further, SECTION 5, page 4633-5, beginning on line 16, by striking item (1) and inserting:

/ (1) ad valorem tax revenues in an amount not exceeding the amount represented by applying the school district's tax millage for the most recently completed property tax year to:

(a) the greater of:

(i) the assessed value of new construction and improvements to existing property not taxed prior to tax year 1994, or

(ii) the assessed value of property in the school district for tax year 1993, multiplied by the growth in the school district's average daily

(b) net growth in the assessed value of property in the district due to changes in the school district boundaries occurring after the end of tax year 1993;/

Amend title to conform.

Rep. GONZALES moved to table the amendment, which was agreed to.

Rep. GONZALES proposed the following Amendment No. 28, which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, by inserting an appropriately numbered SECTION to read:

/SECTION_____. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-150. In addition to all other limitations on spending and beginning with state government spending for fiscal year 1994-1995, total spending by the state government in a fiscal year may not exceed total state government spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor Statistics of the United States Department of Labor. Total spending by the state government for purposes of this limitation is the total of all state government spending in a fiscal year from all sources of funds and for all purposes, but total state government spending does not include:

(1) spending of amounts attributable to revenue growth;

(2) spending of net fee revenues generated by income producing services or facilities in excess of the net fee revenues generated by the same services and facilities, if any, prior to fiscal year 1994-1995;

(3) spending of funds from federal or private sources or not otherwise derived from state taxes or fees;

(4) a capital expenditure financed without borrowing using funds derived from any source other than state taxes or fees;

(5) spending for debt service and lease-purchase payments for
(a) debt issued or lease-purchase agreements entered into prior to July 1, 1994, or

(b) for debt issued or lease-purchase agreements entered into on or after July 1, 1994, and approved by a two-thirds vote of each house of the General Assembly;

(6) spending to offset a prior year deficit;

(8) spending necessary to comply with federal legislative, administrative, or judicial mandates requiring the expenditure of funds or the use of state personnel, facilities, or equipment;

(9) spending approved by at least a two-thirds vote of each house of the General Assembly or by a majority of the registered voters of the state voting in a referendum held for that purpose, with such approval to be subject to the following provisions:

(a) any such referendum for approval of additional spending may be initiated by the vote of a majority of each house of the General Assembly or by a petition signed by five percent of the qualified electors of the state;

(b) only one referendum for approval of additional spending may be held within any two year period;

(c) a referendum may also be held on disapproval of any increased spending which has been approved by a two-thirds vote of each house of the General Assembly under this provision which increase has not been approved by referendum upon petition signed by five percent of the qualified electors of the state;

(d) only one referendum for disapproval of any particular increase in spending may be held within any two year period, and the results thereof, if favorable, shall bind the General Assembly for a period of four years thereafter both as to that particular increase and any subsequent increase, unless the subsequent increase is approved by referendum as provided herein;

(e) any referendum called under the provisions of this section shall be held not less than 30 days and not more than six months after the call therefor, as determined by the Governor, and the results of any referendum shall become effective with the first fiscal year beginning after the date of the referendum;

(f) in the case of natural disaster or other similar emergency, the General Assembly may by a two-thirds vote approve a spending increase notwithstanding a referendum disapproving a spending increase within the preceding four years but such emergency increase may not extend for more than one year and may only be approved after a public hearing advertised at least seven days in advance in a newspaper of general circulation in the affected jurisdiction.

The provisions of this section may be amended only by separate legislation enacted expressly for this purpose.

Renumber sections to conform.

Amend title to conform.

Rep. GONZALES moved to table the amendment, which was agreed to.

Rep. GONZALES proposed the following Amendment No. 30, which was tabled.

Amend the Report of the Committee on Ways and Means, as and if amended, SECTIONS 2, 3, 4, and 5 by adding at the end of each SECTION an additional paragraph to read:

/ The provisions of this section may be amended only by separate legislation enacted expressly for this purpose./

Amend title to conform.

Rep. GONZALES explained the amendment and moved to table the amendment, which was agreed to.

Rep. WILKINS proposed the following Amendment No. 33 (Doc Name L:\council\legis\amend\JIC\5586HTC.94), which was tabled.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION ___. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:

"In no event should the The original cost must not be reduced more than eighty percent for property placed in service before tax year 1988 and ninety percent for property placed in service in tax year 1988 and thereafter. The term `original cost' shall mean means gross capitalized cost as shown by the taxpayer's records for income tax purposes."/

Renumber sections to conform.

Amend title to conform.

Rep. WILKINS moved to table the amendment, which was agreed to.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. (A) Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-257. (A) In addition to any other homestead exemption allowed by law, the amount of fair market value provided in subsection (B) of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all school taxes except school taxes levied for:

(1) debt service;

(2) payments for lease-purchases of school facilities; and

(3) additional school taxes for operating purposes levied for property tax years beginning after 1997.

(B) Amounts of fair market value exempt pursuant to subsection (A) are as follows:

Property Tax Year Exempt Amount

1994 fifty percent

After 1994 one hundred percent

of fair market value.

SECTION 2. Effective July 1, 1994, there is imposed an additional sales, use, and casual excise tax equal to three percent. This additional tax is for all purposes considered to be a tax levied pursuant to Chapter 36, Title 12 of the 1976 Code, the South Carolina Sale and Use Tax Act. The revenue from this additional tax must be used for additional funding of the Education Finance Act and the Education Improvement Act. Any remaining revenue may be appropriated by the General Assembly only for capital improvements.

SECTION 3. Section 12-36-2120 of the 1976 Code is amended by adding:

"(47) effective July 1, 1994, food which may be purchased with USDA food coupons."

SECTION 4. That portion of Section 12-36-2120 of the 1976 Code preceding item (1) is amended to read:

"Exempted from the taxes imposed by this chapter are the gross proceeds of sales, or sales price of Notwithstanding the rates of tax imposed by this chapter and not including items (1), (2), (28), and (47), which are wholly exempt, the applicable tax rate is three percent on the gross proceeds of sales, or the sales price of:"

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