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With Senator MOORE retaining the floor, Senator DRUMMOND, with unanimous consent, was granted leave to explain Part III of Amendment No. 38.

Senator HOLLAND asked unanimous consent to make a motion to be granted leave to be recorded as voting in favor of Parts I, II and III of Amendment No. 38, without changing the outcome.

There was no objection.

At 5:57 P.M., Senator HOLLAND requested a leave of absence for the balance of the day and tomorrow.

At 5:58 P.M., with Senator DRUMMOND retaining the floor, Senator DRUMMOND moved that the Senate stand in recess for fifteen minutes.

With Senator DRUMMOND retaining the floor, the Senate receded from business not to exceed fifteen minutes.

At 7:05 P.M., the Senate resumed.

Senator DRUMMOND spoke on the amendment.

Senator McCONNELL, with unanimous consent, was granted leave to address the body.

Senator McCONNELL asked unanimous consent to make a motion to take up for immediate consideration Amendment No. 38-P4.

There was no objection.

Senator McCONNELL asked unanimous consent to substitute Amendment No. 38-P4 in lieu of Part III of Amendment No. 38.

There was no objection.

Senators McCONNELL and PASSAILAIGUE proposed the following Amendment No. 38-P4 (3901R108.GFM), which was adopted:

/"Section 6-1-82. (A) The governing body of a county or municipality may not impose a new tax after December 31, 1995, unless specifically authorized by the General Assembly.

(B) (1) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the fee is used for the purpose for which the fee is collected and the fee imposed is in exchange for specific and measurable goods or services provided to the person who pays the fee. Any other levy must be classified as a tax.

(2) All funds collected by a county or municipality from the imposition of a fee or tax based on accommodations provided to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for the following purposes:

(a) the development, design, and construction of facilities for civic and meeting activities including required infrastructure (sewer, water, roads) directly impacting the facility(s) begun after January 1, 1996;

(b) the control of waterfront erosion;

(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism activity; and

(d) tourist-related services, including, but not limited to, police protection, restrooms, sanitation, road and sidewalk maintenance, and administrative support services.

For the purposes of this section, `high concentration of tourism and travel activity' means those counties generating three million dollars or more in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the Consumer Price Index based upon the southeastern average.

(3) In a county in which the cumulative county and municipal accommodations tax equals three or four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service,

(C) Effective July 1, 1997, the governing body of each county or municipality is prohibited from charging any fee or tax on the transfer of real property."/

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

Senator McCONNELL moved under Rule 18 to divide the question.

The PRESIDENT stated that Amendment No. 38 was subject to division.
The motion to divide the question was adopted.

Senator McCONNELL asked unanimous consent to make a motion to take up for immediate consideration Part III of Amendment No. 38.

There was no objection.

The question then was the adoption of Part III of Amendment No. 38.

Amend the amendment bearing DOC. NO. 3901R099.TLM, as and if amended, beginning on page 16 by striking Section 6-1-82 in its entirety and inserting in lieu thereof the following:

/"Section 6-1-82. (A) The governing body of a county or municipality may not impose a new tax after December 31, 1995, unless specifically authorized by the General Assembly.

(B) (1) A county or municipality may impose by ordinance or other lawful authorization of the governing body a fee, surcharge, or service charge for a particular local government service so long as the fee is used for the purpose for which the fee is collected and the fee imposed is in exchange for specific and measurable goods or services provided to the person who pays the fee. Any other levy must be classified as a tax.

(2) All funds collected by a county or municipality from the imposition of a fee or tax based on accommodations provided to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must

(a) the development, design, and construction of facilities for civic and meeting activities including required infrastructure (sewer, water, roads) directly impacting the facility(s) begun after January 1, 1996;

(b) the control of waterfront erosion;

(c) construction and maintenance of major tourist access highways in those counties which have a high concentration of tourism activity; and

(d) tourist-related services, including, but not limited to, police protection, restrooms, sanitation, road and sidewalk maintenance, and administrative support services.

For the purposes of this section, `high concentration of tourism and travel activity' means those counties generating three million dollars or more in state accommodations tax in the 1994-95 fiscal year. This base rate must be adjusted upward annually by the Consumer Price Index based upon the southeastern average.

(3) In a county in which the cumulative county and municipal accommodations tax equals three or four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).

(C) Effective July 1, 1997, the governing body of each county or municipality is prohibited from charging any fee or tax on the transfer of real property."/

Amend title to conform.

Part III of Amendment No. 38 was adopted.

Senator WILSON desired to be recorded as voting against Part III of Amendment No. 38.

Senator MOORE asked unanimous consent to take up for immediate consideration Part II of Amendment No. 38.

There was no objection.

Amend the bill further, as and if amended, page 8, line 10, by striking PART II in its entirety and inserting in lieu thereof the following:

SECTION 1. A. The entity authorized to hold elections in each county and municipality must conduct a referendum on the question contained herein on November 5, 1996. The county and the municipality must have separate ballots. The electors of a municipality may vote in both the county and the municipal referendum. The state election laws apply to this referendum, mutatis mutandis. The entity authorized to hold elections shall publish the results of the referendum and certify them to the appropriate local governing body.

B. If the majority of voters within a county approve the question, the provisions of PART II apply to the entire county. If the majority of voters within a municipality approve the question, the provisions of PART II apply within that municipality. If the result of this referendum within the county is not in favor of the question, then the provisions of this PART do not apply to such county, but may apply to a municipality if the result of the referendum within the municipality is in favor of the question. If the result of this referendum within the municipality is not in favor of the question, then the provisions of this PART do not apply to such municipality, but may apply to the entire county if the result of the referendum within the county is in favor of the question. The referendum question must read substantially as follows:

"Do you favor limiting Act 283 of 1975 known as the Home Rule Act in order to prohibit (Municipality or County) from imposing any new taxes or fees unless enacted before December 31, 1995, or unless expressly authorized by the General Assembly and imposed upon approval of two-thirds of the local governing body and limiting an increase in tax, fee, and millage rates to the Consumer Price Index unless there is a declared emergency or unless declared necessary to pay for a judicially-mandated expenditure or bonded indebtedness or to offset a prior year's deficit and authorizing a tax, fee, or millage rate increase above the Consumer Price Index if approved by two-thirds vote of the local governing body and allowing (Municipality or County), by majority vote of the local governing body, to impose a cumulative fee or tax of three percent on accommodations furnished to transients and one percent on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."

In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the entity responsible for placing this question on the ballot is granted the limited authority to modify the ballot question only to the extent necessary to change "three percent" to "four percent".

SECTION 2. Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-142. (A) The governing body of a county may not impose any new tax or fee after December 31, 1995, unless specifically authorized by the General Assembly: (1) in a prior act granting specific authorization for a fee for a particular local government service, provided that the purpose for which the proceeds of the fee is used is reasonably related to the nature of the fee and the proceeds are used only for the specific purpose for which the fee is levied or in a prior act granting specific authorization for the imposition of a tax; (2) by this act; or (3) in a future act. The governing body of a county may not increase tax rates or fee rates, excluding fee rates charged for public utilities and fee rates charged by hospitals, imposed for any purposes above the rates imposed for such purposes for the prior tax year. However, rates may be increased by the percentage increase in the Consumer Price Index based upon the southeastern average. Notwithstanding the limitations contained in this subsection, rates may be increased for the following purposes:

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

(2) to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment;

(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency;

(4) to site, establish, or operate a regional facility, which consists of two or more counties, under the provisions of Chapter 96 of Title 44 of the 1976 Code, as amended; or

(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.

(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. For the purposes of this section, if a council-supervisor form of government has eight members, a five-eighths vote is required.

(D)(1) Except as provided in subsection (3), any county fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not be imposed in any incorporated areas of the county without the consent of the affected municipality. The cumulative rate of county and municipal fees based on meals provided in establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine may not exceed one percent, regardless of the date such fee or tax was imposed. The cumulative rate of county and municipal fees based on accommodations provided transients may not exceed three percent, regardless of the date such fee or tax was imposed.

(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises

(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;

(b) cultural, recreational, or historical facilities;

(c) beach access and renourishment;

(d) highways, roads, streets, and bridges providing access to tourist destinations; or

(e) advertisements and promotions related to tourism development.

(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).

(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. For the purposes of this section, in a county which has adopted the council-supervisor form of government, pursuant to Title 4, Chapter 9, Article 5, a county supervisor is not a member of the governing body. This subsection does not prohibit an increase in the total ad valorem tax as a result of the assessments added for property or improvements not previously taxed, new construction, or renovation of existing structures occurring during the reassessment period.

(F) Effective January 1, 1997, the governing body of each county is prohibited from charging any fee or tax on the transfer of real property."

SECTION 3. Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:

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

(2) to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment;

(3) in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rates and fee rates must return to the rates immediately preceding the emergency; or

(4) 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.

(B) Notwithstanding any provision of the law to the contrary, rates may be further increased upon a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(C) Any new tax or fee authorized pursuant to subsection (A) or any other new source of revenue for any purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required.

(D)(1) Except as provided in subsection (3), no municipal fee or tax based on the gross proceeds derived from the rental or charges for accommodations furnished to transients or based on sales of food and beverages sold in or by establishments licensed for on-premises

(2) All funds collected by a county or municipality from the imposition of a fee or tax on the gross proceeds derived from the rental or charges for accommodations furnished to transients and on sales of food and beverages sold in or by establishments licensed for on-premises consumption of alcoholic beverages, beer, or wine must be deposited into a special dedicated account established to hold these funds. All interest must be retained in the account. None of these funds may be placed in the county's or municipality's general fund. These funds must be used exclusively for establishment, operation, and maintenance of the following purposes:
(a) tourism related buildings to include, but not limited to, civic centers, coliseums, and aquariums;

(b) cultural, recreational, or historical facilities;

(c) beach access and renourishment;

(d) highways, roads, streets, and bridges providing access to tourist destinations; or

(e) advertisements and promotions related to tourism development.

(3) In a county in which the cumulative county and municipal accommodations tax equals four percent as of March 12, 1996, the cumulative rate of county and municipal fees based on accommodations provided transients may not exceed four percent and the funds may be used for police, fire protection, emergency medical service, and emergency preparedness operations directly attendant to these facilities, in addition to those purposes listed in subsection (2).

(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage except that the rollback millage may be increased by the percentage increase in the Consumer Price Index, based on the southeastern average, for the year immediately preceding the year of reassessment. The millage rate may be further increased during the year of reassessment upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members or more than twelve members, a three-fifths vote is required. This subsection does not prohibit an increase in the total ad

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