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(2) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(3) to raise the revenue necessary to comply with judicial mandates requiring the use of special purpose or public service district funds, personnel, facilities, or equipment.

(B) The millage rate may be further increased upon a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C) The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account.

(D) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a public or special purpose district to the extent those limitations are more restrictive than the provisions of this section."

G. Chapter 73, Title 59 of the 1976 Code is amended by adding:

"Section 59-73-35. (A) The governing body authorized by law to levy school taxes may not increase the millage rate imposed for operating purposes above the rate imposed for such purposes for the prior tax year.

(B) The millage rate may, however, be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body authorized by law to levy school taxes of the school district. Notwithstanding the limitation upon millage rate increases contained in this subsection, the millage rate may be increased for the following purposes:

(2) in response to a natural or environmental disaster as declared by the Governor;

(3) to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(4) to raise the revenue necessary to comply with judicial mandates requiring the use of school district funds, personnel, facilities, or equipment.

(C) Notwithstanding any provision of law to the contrary, the millage rate may be increased upon a two-thirds vote of the governing body authorized by law to levy school taxes of the school district. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body authorized by law to levy school taxes of the school district.

(D) The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670.

(E) The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a school district to the extent those limitations are more restrictive than the provisions of this section.

(F) The provisions of this section do not apply to a school district in which any increase in the ad valorem school tax levy for a particular year must be approved by the qualified electors of the school district in a referendum."

H. Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-350. Affected political subdivisions must use a tax bill which must contain standard information and include the following:

(1) name and address of owner;

(2) tax map number;

(3) location of property;

(4) appraised value;

(5) assessed value;

(6) assessed ratio;

(7) millage for each tax district;

(9) total tax liability for current year;

(10) state property tax relief benefit (savings);

(11) local option sales tax credit."

I. Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-80. (A) The counties, municipalities, special purpose, or public service and school districts of this State must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section in at least one South Carolina newspaper of general, audited circulation in the area. The public hearing must give the residents of the jurisdiction the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given not less than fifteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with at least a twenty-four point headline.

(B) The notice shall include the following:

(1) the governing entity's name;

(2) the time, date, and location of the public hearing on the budget;

(3) the total, actual, and projected expenditures of the current operating fiscal year in the budget of the governing entity;

(4) the proposed total projected operating expenditures for the next fiscal year as proposed in next year's budget for the governing entity;

(5) the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;

(6) the total, actual, and projected revenue of all property taxes in dollars for the current fiscal year budget;

(7) the proposed total projected revenue of all property taxes in dollars for the proposed budget;

(8) the millage for the current fiscal year;

(9) the proposed millage as proposed in the budget for the next fiscal year;

(10) the rollback millage rate, computed by dividing the current year's property tax revenues by the budget year property tax assessment base;

(11) any new fees or taxes that would affect more than five percent of the total proposed budget; and

(12) estimated local option sales tax credit, if applicable.

(C) The requirements of this section apply in the preparation of annual budget and supplemental appropriations. When the counties, municipalities, and special purpose or public service districts, and school

J. There shall be established a committee which shall be known as the "Joint Ad Hoc Committee on Unfunded Mandates" (hereinafter the "committee"). The committee shall be composed of three members appointed from the House of Representatives by the Speaker of the House of Representatives, three members appointed from the Senate by the President of the Senate, and three members appointed by the Governor. The committee shall investigate and review the role of unfunded mandates and their impact on the counties of this State. The committee shall hold public hearings and report to the General Assembly with specific recommendations on the repeal or modification of all unfunded mandates in existence as of July 1, 1995. The committee's consideration of unfunded mandates shall include, but is not limited to, those mandates imposed by statute, regulation, and judicial interpretation. The committee shall issue a report and make its recommendations to the General Assembly prior to the commencement of the Second Session of the 111th General Assembly. Upon issuing its report, the committee terminates.

K. The 1976 Code is amended by adding:

"Section 12-47-75. If a taxpayer or his agent pays property taxes in error, or the payment is erroneously credited, the treasurer shall credit the amount paid against the actual liability of the taxpayer for the tax year in question. This section applies for any tax year for which proof is provided."

L. (1) The first paragraph of Section 12-43-220(c) of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for

To qualify for this special assessment ratio, the owner-occupant must have actually occupied the residence, prior to the date of application, for some period during the tax year and remain an owner-occupant at the time of application. However, when a new or renovated residential property has been certified for occupancy after the beginning of a tax year, the property must be assessed as provided in item (e) on the unimproved value of the property."

(2) This subsection takes effect upon approval by the Governor and applies with respect to property tax years beginning after 1994.

M. Section 11-11-440(A) of the 1976 Code is amended to read:

"(A) The General Assembly may not provide for any general tax increase or enact new general taxes in the permanent provisions of the State General Appropriation Act or acts supplemental thereto, and any such general tax increases or new general taxes must be enacted only by separate act passed by a vote of at least two-thirds of the members of each house."

N. Notwithstanding the provisions of Section 12-43-220(d)(3) of the 1976 Code, the deadline for filing for agricultural use value for property owned as of December 31, 1993, is extended to January 15, 1996./

Renumber sections to conform.

Amend totals and title to conform.

Rep. H. BROWN explained the amendment.

Rep. STILLE raised the Point of Order that Amendment No. 1A was out of order as it was not germane under Rule 5.3 in that sections of the amendment did not refer back to Part I of the Bill.

Rep. STILLE continued to argue that it was not germane to the Bill.

The SPEAKER stated that he had to consider the amendment as a whole and it was germane and he overruled the Point of Order.

Rep. H. BROWN continued speaking.

Rep. COBB-HUNTER raised the Point of Order that Amendment No. 1A was out of order as it violated Article III, Section 17 of the Constitution.

The SPEAKER stated that the Point of Order came too late and he overruled the Point of Order.

The amendment was then adopted.

I voted against Amendment 1A and H. 3362 because I believe the bill contains provisions which are not germane to the bill under House Rule 5.3 and in violation of Article III, Section 17 of the S.C. Constitution. The particular items of concern are subsections C, D, E, F, G, H, I, K, L and N of the Part II proviso added in Amendment 1A.

I believe those provisions violate Article III, Section 17 of the S.C. Constitution for the reasons stated below:

"The subject of an appropriations bill is solely to make appropriations to meet the ordinary expenses of state government and to direct the manner in which the funds are to be expended." Ex Parte Georgetown County Water & Sewer Dist., 284 S.C. 466, , 327 S.E.2d 645, 656 (1985). The test for the one subject requirement applied to a budget bill is whether the challenged proviso reasonably and inherently relates to the raising and spending of state tax monies. Ex Parte Georgetown County Water & Sewer Dist., 284 S.C. 466, 327 S.E.2d 645 (1985); State Farm v. Smith, 281 S.C. 209, 314 S.E.2d 333 (1984); Maner v. Maner, 296 S.C. 377, 9296 S.E.2d 533 (1982); S.C. Tax Comm'n v. York Electric Co-op., 275 S.C. 326, 270 S.E.2d 626 (1980); and Hercules Inc. v. S.C. Tax Comm'n, 274 S.C. 137, 262 S.E.2d 45 (1980).

Rep. GILDA COBB-HUNTER

Rep. HODGES proposed the following Amendment No. 3A (Doc Name L:\COUNCIL\LEGIS\AMEND\GJK\21985SD.95), which was ruled out of order.

Amend the bill, as and if amended, Part II, by adding a new Section appropriately numbered to read:

(1) The third paragraph of Section 14-5-610 of the 1976 Code, as last amended by Act 610 of 1990, is further amended to read:

"In addition to the above judges authorized by this section, there must be ten thirteen additional circuit judges elected by the General Assembly from the State at large for terms of office of six years. These additional judges must be elected without regard to county or circuit of residence. Each office of the at-large judges is a separate office and is assigned numerical designations of Seat No. 1 through Seat No. 10 13 respectively."

(2) Section 14-8-10 of the 1976 Code is amended to read:

"Section 14-8-10. There is hereby created the Court of Appeals (the Court), which shall be a part of the unified judicial system. The Court shall consist of a Chief Judge and five eight associate judges."

(3) Section 14-8-80 of the 1976 Code is amended to read:

"Section 14-8-80. (a) The Court shall sit in two three panels of three judges each. However, nothing herein shall in this section may be construed to prevent the Court from sitting as a whole.

(b) The Chief Judge shall be is responsible for the administration of the Court, subject to the provisions of Article V, Section 4 of the Constitution of this State. The Chief Judge shall assign the members of the panels and shall systematically rotate and interchange the members of the panels in accordance with rules promulgated by the Supreme Court. The Chief Judge shall preside over the panel of which he is a member and in his absence the judge senior in service and present shall preside. The judge senior in service and present on the other panel shall preside over the other panel. For the five associate judges whose terms begin on July 1, 1985, the determination of their length of service shall be based on their order of election, with the associate judge who is elected first being the associate judge senior in service; provided, however, that seniority among the judges on an interim Court of Appeals shall continue on the permanent Court of Appeals established by the provisions of this chapter and service on that Court shall be included in determining the length of service on the Court herein established.

(c) Cases shall must be distributed between the two three panels by the Chief Judge in accordance with rules promulgated by the Supreme

(d) On a panel, three judges shall constitute a quorum, and the concurrence of a majority of the judges shall be is necessary for the reversal of the judgment below."

(4) Section 14-8-90 of the 1976 Code is amended to read:

"Section 14-8-90. (A) The Court may sit en banc to hear cases upon:

(a)(1) upon petition by a party filed in accordance with rules promulgated by the Supreme Court if the petition is granted by four six judges of the Court; or

(b)(2) upon its own motion agreed to by four six judges of the Court.

(B) When the Court sits en banc, four six of the judges shall constitute a quorum and a concurrence of four six of the judges is necessary for a reversal of the judgment below. The Chief Judge shall preside, and in his absence the judge senior in service and present shall preside."

(5) Section 20-7-1410 of the 1976 Code is amended to read:

"Section 20-7-1410. The General Assembly shall elect a number of Family Court Judges from each judicial circuit as follows:

First Circuit Two Judges

Second Circuit Two Judges

Third Circuit Three Judges

Fourth Circuit Three Judges

Fifth Circuit Four Five Judges

Sixth Circuit Two Judges

Seventh Circuit Three Judges

Eighth Circuit Three Judges

Ninth Circuit Four Five Judges

Tenth Circuit Three Judges

Eleventh Circuit Three Judges

Twelfth Circuit Three Judges

Thirteenth Circuit Four Five Judges

Fourteenth Circuit Three Judges

Fifteenth Circuit Two Judges

Sixteenth Circuit Two Judges

In the following judicial circuits at least one Family Court Judge must be a resident of each county in the circuit: fifth, seventh, ninth, tenth, twelfth, thirteenth, fifteenth, and sixteenth. In those judicial circuits made up of three or more counties at least one Family Court Judge must be a

No county in the sixth circuit shall have more than one resident Family Court Judge."

(6)(A) The terms begin February 1, 1996, for the Circuit Court Judges, Associate Judges of the Court of Appeals, and the Family Court Judges as added by the amendments to Sections 14-5-610, 14-8-10, and 20-7-1410, respectively, of the 1976 Code, as contained in this section.

(B) The term of the Associate Judge of the Court of Appeals initially elected to:

(1) Seat 7 is for six years;

(2) Seat 8 is for four years;

(3) Seat 9 is for two years.

All subsequent terms for the Associate Judges of the Court of Appeals as added by this section are as provided for in Title 14, Chapter 8 of the 1976 Code.

(7) (A) Mindful of its duty to elect members of the Supreme Court, the Court of Appeals, and the Circuit Courts under Article V of the South Carolina Constitution, and to elect other judges pursuant to law, the General Assembly finds that the exercise of this constitutional and statutory power will be substantially aided and improved by the creation of a Judicial Merit Selection Panel pursuant to this section. The provisions of this section shall be effective with respect to the election of judges added by the provisions of this section and with respect to all other judges elected after January 1, 1996, by the General Assembly. The General Assembly has considered the constitutionality of this legislation and finds that such legislation is constitutional under Article V of the South Carolina Constitution.

(B) Title 14 of the 1976 Code is amended by adding:

Section 14-4-10. (A) There is created a Judicial Merit Selection Panel to assist the General Assembly in the selection of qualified justices and judges for vacancies in the Supreme Court, Court of Appeals, Circuit Court, Family Court, and the Administrative Law Judge Division. The panel shall consist of ten members as follows:

(1) Two members of the panel shall be appointed by the Governor who shall not be attorneys at law licensed to practice in this State.

(2) Two members of the panel shall be elected by the Senate, one of whom shall be a member of the Senate, and one of whom shall not be a member of the General Assembly.

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