South Carolina General Assembly
113th Session, 1999-2000
Journal of the House of Representatives

Wednesday, June 23, 1999
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 9:30 A.M.
Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark, as follows:

As the time draws near when the gavel has fallen the last time on this Legislative session, we thank You, Heavenly Father, as we think of where we have been during these past months. Take the seeds that we have sown, multiply the good ones to bring forth a hundredfold harvest. Overrule and bring to naught those sown in error or of no value. As the time approaches when the last words of this session have been spoken as these captains of Legislative authority depart this hall, continue Your blessings wherever we go, whatever we do. Bless us and keep us in Your continual care. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. RICE moved that when the House adjourns, it adjourn in memory of former Representative James B. Morrison of Georgetown, which was agreed to.

COMMITTEE APPOINTMENT

The following was received.

June 22, 1999
The Honorable Lonnie Hosey
404A Blatt Building
Columbia, SC 29201

Dear Lonnie:

It is with pleasure that I appoint you to serve on the Medical, Military, Public and Municipal Affairs Committee, effective June 22, 1999. I know that you will serve this committee with honor and distinction. If you have any questions, please do not hesitate to contact me.

I look forward to working with you in this year.

Sincerely,
David H. Wilkins
Speaker of the House
Received as information.

COMMITTEE APPOINTMENT

The following was received.

June 22, 1999
The Honorable Marion Frye
335D Blatt Building
Columbia, SC 29201

Dear Marion:

It is with pleasure that I appoint you to serve on the Agriculture, Natural Resources and Environmental Affairs Committee, effective June 22, 1999. I know that you will serve this committee with honor and distinction. If you have any questions, please do not hesitate to contact me.

I look forward to working with you in this year.

Sincerely,
David H. Wilkins
Speaker of the House
Received as information.

CONCURRENT RESOLUTION

The following was introduced:

H. 4261 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION COMMENDING THE REVEREND DR. DOROTHY L. PEARSON OF RICHLAND COUNTY ON HER FORTY-ONE YEARS AS PASTOR OF MOUNT OLIVE BAPTIST CHURCH AND FOR HER MANY YEARS OF SPREADING THE GOSPEL THROUGHOUT THIS NATION.
The Concurrent Resolution was agreed to and ordered sent to the Senate.

HOUSE RESOLUTION

The following was introduced:

H. 4262 (Word version) -- Rep. Harvin: A HOUSE RESOLUTION CONGRATULATING THE MENTAL HEALTH ASSOCIATION IN SOUTH CAROLINA ON ITS FORTY-FIFTH BIRTHDAY.
The Resolution was adopted.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 904 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION TO CONGRATULATE BOYD MANAGEMENT ON ITS DYNAMIC EXPANSION SINCE 1985 AND ON ITS PLANS FOR NEW HEADQUARTERS IN NORTHEAST COLUMBIA.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 908 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION CONGRATULATING MASHBURN CONSTRUCTION COMPANY ON ITS GROWTH FOR ALMOST A QUARTER OF A CENTURY INTO A THRIVING BUSINESS THAT NOW REQUIRES EXPANDED FACILITIES, AND EXPRESSING GRATITUDE FOR THE COMMUNITY LEADERSHIP AND EXEMPLARY CORPORATE CITIZENSHIP THAT MASHBURN'S OWNERS AND EMPLOYEES HAVE SHOWN.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows:

Allen                  Allison                Altman
Bailey                 Bales                  Barfield
Barrett                Battle                 Bowers
Breeland               Brown G.               Brown H.
Brown J.               Brown T.               Campsen
Carnell                Cato                   Chellis
Clyburn                Cobb-Hunter            Cotty
Dantzler               Davenport              Delleney
Easterday              Edge                   Emory
Fleming                Frye                   Gamble
Gilham                 Gourdine               Govan
Hamilton               Harrell                Harris
Harvin                 Haskins                Hawkins
Hayes                  Hines J.               Hinson
Hosey                  Howard                 Inabinett
Jennings               Keegan                 Kelley
Kennedy                Kirsh                  Klauber
Knotts                 Koon                   Law
Leach                  Lee                    Limehouse
Littlejohn             Lloyd                  Loftis
Lourie                 Lucas                  Mack
Maddox                 Martin                 McCraw
McGee                  McLeod M.              McLeod W.
Meacham                Miller                 Moody-Lawrence
Neal                   Neal J.M.              Ott
Parks                  Phillips               Pinckney
Quinn                  Rhoad                  Rice
Riser                  Robinson               Rodgers
Rutherford             Sandifer               Scott
Sharpe                 Sheheen                Simrill
Smith D.               Smith F.               Smith R.
Stille                 Stuart                 Taylor
Townsend               Tripp                  Trotter
Vaughn                 Walker                 Webb
Whatley                Whipper                Wilder
Wilkes                 Wilkins                Young-Brickell

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Wednesday, June 23.

Harry Askins                           Scott Beck
Ralph Canty                                 Daniel Cooper
Steve Lanford                          Denny Neilson
Lynn Seithel                                William Witherspoon
Total Present--116

LEAVE OF ABSENCE

The SPEAKER granted Rep. BECK a temporary leave of absence.

LEAVE OF ABSENCE

The SPEAKER granted Rep. WITHERSPOON a temporary leave of absence.

LEAVE OF ABSENCE

The SPEAKER granted Rep. MCMAHAND a leave of absence.

LEAVE OF ABSENCE

The SPEAKER granted Rep. M. HINES a leave of absence due to illness.

H. 3218 -- COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it insists upon its amendments to H. 3218:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Very respectfully,
President
Received as information.

Whereupon, the Chair appointed Reps. MILLER, MADDOX and ALTMAN to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

H. 3696 -- FREE CONFERENCE POWERS REJECTED

Rep. H. BROWN moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3696 - THE GENERAL APPROPRIATIONS BILL

The yeas and nays were taken resulting as follows:

Yeas 68; Nays 33

Those who voted in the affirmative are:

Allen                  Allison                Barfield
Barrett                Battle                 Beck
Brown H.               Brown J.               Campsen
Cato                   Chellis                Cooper
Cotty                  Delleney               Easterday
Edge                   Fleming                Frye
Gamble                 Gilham                 Hamilton
Harrell                Harris                 Haskins
Hawkins                Hinson                 Jennings
Keegan                 Kelley                 Kennedy
Kirsh                  Klauber                Koon
Law                    Leach                  Lee
Limehouse              Littlejohn             Loftis
Lourie                 Lucas                  Maddox
Martin                 McCraw                 McGee
Meacham                Phillips               Quinn
Rice                   Riser                  Robinson
Rodgers                Sandifer               Sharpe
Simrill                Smith D.               Smith R.
Stuart                 Taylor                 Townsend
Tripp                  Trotter                Vaughn
Walker                 Webb                   Wilder
Wilkins                Young-Brickell

Total--68

Those who voted in the negative are:

Altman                 Bailey                 Bales
Bowers                 Breeland               Brown T.
Clyburn                Cobb-Hunter            Dantzler
Davenport              Emory                  Gourdine
Govan                  Hines J.               Hosey
Howard                 Inabinett              Knotts
Lloyd                  Mack                   McLeod M.
Moody-Lawrence         Neal                   Neal J.M.
Parks                  Pinckney               Rhoad
Rutherford             Scott                  Stille
Whatley                Whipper                Wilkes

Total--33

So, Free Conference Powers were rejected.

H. 3002 -- FREE CONFERENCE POWERS REJECTED

Rep. HASKINS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Edge, Robinson, Emory, McCraw, W. McLeod and J. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

The yeas and nays were taken resulting as follows:

Yeas 57; Nays 51

Those who voted in the affirmative are:

Allison                Bailey                 Barfield
Barrett                Battle                 Bowers
Brown G.               Brown H.               Brown J.
Carnell                Cato                   Chellis
Clyburn                Cotty                  Dantzler
Edge                   Harrell                Harvin
Haskins                Hayes                  Hinson
Jennings               Keegan                 Kelley
Kennedy                Knotts                 Law
Lee                    Limehouse              Littlejohn
Lourie                 Maddox                 Martin
McGee                  McLeod M.              Miller
Ott                    Quinn                  Rhoad
Riser                  Rodgers                Sandifer
Seithel                Sharpe                 Smith D.
Stuart                 Taylor                 Townsend
Tripp                  Trotter                Walker
Webb                   Whatley                Wilder
Wilkes                 Wilkins                Young-Brickell

Total--57

Those who voted in the negative are:

Altman                 Bales                  Beck
Breeland               Brown T.               Campsen
Canty                  Davenport              Delleney
Easterday              Emory                  Fleming
Frye                   Gamble                 Gilham
Gourdine               Govan                  Hamilton
Harris                 Hawkins                Hines J.
Hosey                  Howard                 Inabinett
Kirsh                  Klauber                Koon
Lanford                Leach                  Lloyd
Loftis                 Lucas                  Mack
McCraw                 McLeod W.              Meacham
Moody-Lawrence         Neal                   Neal J.M.
Neilson                Parks                  Phillips
Pinckney               Rice                   Scott
Sheheen                Simrill                Smith F.
Smith R.               Stille                 Vaughn

Total--51

So, Free Conference Powers were rejected.

H. 3359 -- NON-CONCURRENCE IN SENATE AMENDMENTS

The Senate amendments to the following Bill were taken up for consideration:

H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.

Rep. DANTZLER explained the Senate amendments.

The House refused to agree to the Senate amendments and a message was ordered sent accordingly.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on H. 4000:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE DEPARTMENT OF EDUCATION TO ESTABLISH A TASK FORCE TO MAKE RECOMMENDATIONS FOR PURSUING STATEWIDE WAIVERS FOR THE SIX FEDERAL EDUCATION PROGRAMS AND ESTABLISHING A STATE EDUCATION FLEXIBLITY PROGRAM AND REPORT NO LATER THAN DECEMBER 1, 1999, TO THE SENATE EDUCATION COMMITTEE AND THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE.
Very respectfully,
President

Received as information.

H. 4000 -- CONFERENCE REPORT ADOPTED
CONFERENCE REPORT
H. 4000
The General Assembly, Columbia, S.C., June 23, 1999

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 4000 (Word version) -- Reps. Hamilton, Wilkins, Townsend, Altman, Bales, Battle, Barrett, Beck, G. Brown, H. Brown, Canty, Carnell, Clyburn, Cooper, Cotty, Dantzler, Davenport, Easterday, Emory, Gilham, Gourdine, Harrell, Hayes, J. Hines, M. Hines, Hinson, Jennings, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Lee, Limehouse, Littlejohn, Maddox, Martin, Mason, McCraw, McGee, Miller, Parks, Phillips, Rodgers, Sandifer, D. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Vaughn, Young-Brickell and Simrill: A BILL TO DIRECT THE STATE BOARD OF EDUCATION THROUGH THE DEPARTMENT OF EDUCATION TO ESTABLISH A TASK FORCE TO MAKE RECOMMENDATIONS FOR PURSUING STATEWIDE WAIVERS FOR THE SIX FEDERAL EDUCATION PROGRAMS AND ESTABLISHING A STATE EDUCATION FLEXIBLITY PROGRAM AND REPORT NO LATER THAN DECEMBER 1, 1999, TO THE SENATE EDUCATION COMMITTEE AND THE HOUSE EDUCATION AND PUBLIC WORKS COMMITTEE.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 5/20/99--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/     SECTION     1.     (A)     The State Board of Education through the Department of Education is directed to establish a task force to review and make recommendations for pursuing statewide waivers for the six applicable federal education programs and establishing a state education flexibility program to include the possible waiving of specified statutory and regulatory educational requirements applicable to local school districts and schools to help improve student academic performance.

(B)     The recommendations shall include, but not be limited to:

(1)     the particular waivers to be sought from federal regulations and the reasons why;

(2)     state statutory requirements relating to education that the General Assembly should consider including in the flexibility program and the reasons why;

(3)     the regulatory requirements relating to education that the board will consider waiving;

(4)     a description of how the proposed educational flexibility plan is consistent with and will assist in implementing the intent and objectives of Act 135 of 1993, the School to Work Transition Act of 1994, and the Education Accountability Act of 1998;

(5)     the process to be used to evaluate applications from local school districts or schools requesting waivers of state statutory or regulatory education requirements; and

(6)     the process to be used to evaluate the performance of students in the schools and local school districts affected by the waivers.

(C) In undertaking this review, the following areas may not be considered for the education flexibility program:

(1)     maintenance of effort;

(2)     comparability of services;

(3)     parental participation and involvement;

(4)     the distribution of funds to local school districts;

(5)     school attendance areas; and

(6)     applicable constitutional requirements.

(D)     In establishing the membership of the task force, the State Board and Department of Education shall appoint members of the education community directly involved in the areas covered by the federal programs and under consideration for waivers as well as school and district administrators. The members should come from all regions of the State and be representative of the types of school districts in the State. The task force report and the recommendations of the state board shall be reported to the Senate Education Committee and House Education and Public Works Committee no later than December 1, 1999.

SECTION     2.     This act takes effect upon approval by the Governor.     /

Amend title to conform.

/s/James Bryan                    /s/Glenn Hamilton
/s/Maggie Glover                  /s/Jesse Hines
William Mescher                   /s/Shirley Hinson
On Part of the Senate.            On Part of the House.

Rep. HAMILTON explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

H. 4000 -- ORDERED ENROLLED FOR RATIFICATION

The Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act and that it be enrolled for Ratification.

ORDERED TO THIRD READING

The following Bill was taken up, read the second time, and ordered to a third reading:

S. 810 (Word version) -- Senator Washington: A BILL TO AMEND SECTION 7-7-330, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN JASPER COUNTY, SO AS TO DELETE SPECIFIC DELINEATIONS OF THE BOUNDARIES OF THESE VOTING PRECINCTS AND DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE DIVISION OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD, TO REDESIGNATE AN ADDITIONAL PRECINCT AS RIDGELAND 3, AND PROVIDE THAT POLLING PLACES FOR THESE PRECINCTS MUST BE DETERMINED BY THE BOARD OF ELECTIONS AND VOTER REGISTRATION OF JASPER COUNTY WITH THE APPROVAL OF A MAJORITY OF THE JASPER COUNTY LEGISLATIVE DELEGATION.

H. 4196 -- SENATE AMENDMENTS CONCURRED IN AND BILL ENROLLED

The Senate amendments to the following Bill were taken up for consideration:

H. 4196 (Word version) -- Reps. Witherspoon, Barfield, Edge, Keegan, Miller and Kelley: A BILL TO AMEND ACT 612 OF 1980, RELATING TO THE COMPENSATION OF MEMBERS OF THE HORRY COUNTY BOARD OF EDUCATION, SO AS TO INCREASE THE ANNUAL COMPENSATION OF MEMBERS OF THE BOARD AND PROVIDE WHEN THE INCREASE IS EFFECTIVE.

The Senate amendments were agreed to and the Bill having received three readings in both Houses, it was ordered that the title be changed to that of an Act and that it be enrolled for Ratification.

H. 3591 -- SENATE AMENDMENTS CONCURRED IN AND BILL ENROLLED

The Senate amendments to the following Joint Resolution were taken up for consideration:

H. 3591 (Word version) -- Reps. Koon, R. Smith, Sharpe and Riser: A JOINT RESOLUTION TO PROVIDE FOR A THREE-YEAR PILOT PROGRAM IN ALL GAME ZONES OF THE STATE TO SHORTEN THE HUNTING SEASON FOR RACCOONS TO A PERIOD FROM THANKSGIVING DAY THROUGH MARCH 1; TO ALLOW HUNTING WITH DOGS ONLY FOR THE REMAINDER OF THE YEAR; AND TO IMPOSE A MINIMUM FINE OF FIVE HUNDRED DOLLARS FOR A PERSON VIOLATING THESE PROVISIONS, WITH EIGHTY PERCENT OF THE FINE RETAINED BY THE DEPARTMENT OF NATURAL RESOURCES AND USED FOR LAW ENFORCEMENT AND TWENTY PERCENT OF THE FINE FORWARDED TO THE APPROPRIATE GAME FUND IN THE COUNTY IN WHICH THE VIOLATION OCCURRED.

The Senate amendments were agreed to and the Joint Resolution having received three readings in both Houses, it was ordered that the title be changed to that of an Act and that it be enrolled for Ratification.

H. 3696 -- FREE CONFERENCE POWERS GRANTED

Rep. H. BROWN moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3696 -- THE GENERAL APPROPRIATIONS BILL

The yeas and nays were taken resulting as follows:

Yeas 82; Nays 21

Those who voted in the affirmative are:

Allison                Bailey                 Bales
Barfield               Barrett                Beck
Bowers                 Brown G.               Brown H.
Brown J.               Campsen                Carnell
Cato                   Chellis                Cooper
Cotty                  Dantzler               Delleney
Easterday              Edge                   Emory
Fleming                Frye                   Gamble
Gilham                 Hamilton               Harrell
Harris                 Harvin                 Haskins
Hawkins                Hinson                 Jennings
Keegan                 Kelley                 Kennedy
Kirsh                  Klauber                Knotts
Koon                   Lanford                Law
Leach                  Lee                    Limehouse
Littlejohn             Loftis                 Lourie
Lucas                  Martin                 McCraw
McGee                  McLeod W.              Meacham
Neal J.M.              Neilson                Phillips
Quinn                  Rhoad                  Rice
Riser                  Robinson               Rodgers
Sandifer               Seithel                Sharpe
Sheheen                Simrill                Smith D.
Smith R.               Stuart                 Taylor
Townsend               Tripp                  Trotter
Vaughn                 Walker                 Webb
Whatley                Wilder                 Wilkins
Young-Brickell

Total--82

Those who voted in the negative are:

Altman                 Breeland               Brown T.
Canty                  Cobb-Hunter            Davenport
Gourdine               Govan                  Hines J.
Hosey                  Howard                 Inabinett
Lloyd                  Mack                   McLeod M.
Moody-Lawrence         Neal                   Parks
Pinckney               Rutherford             Stille

Total--21

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

The Committee of Conference was thereby resolved into a Committee of Free Conference. The SPEAKER appointed Reps. H. BROWN, HARRELL and ALLISON to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

H. 3696--RECORD FOR VOTING

I voted for free conference powers on House Bill 3696 (the Budget Bill) recognizing the hard work of the Ways and Means Committee and the unfortunate reality that without free conference we would not have a budget this year. Shutting the government down simply is not an option. There are many excellent features in this years budget, such as continued real estate property tax relief, senior citizens tax relief and long awaited car tax relief, but sadly, the government continues to grow faster than I would prefer. Slowing the growth of government and providing state tax relief must occur in order for the citizens of our State to regain their confidence in their elected officials.

Rep. D. SMITH

H. 3696 -- FREE CONFERENCE REPORT ADOPTED
FREE CONFERENCE REPORT
The General Assembly, Columbia, S.C., June 23, 1999

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3696 --Ways and Means Committee: General Appropriations Bill for Fiscal Year 1999-2000.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:
Amend title to conform.
Amend totals and title to conform.
Make all necessary technical corrections.

/s/John Drummond                  /s/Henry E. Brown, Jr.
/s/Nikki G. Setzler               /s/Robert W. Harrell, Jr.
/s/Glenn F. McConnell             /s/Merita A. Allison
On Part of the Senate.            On Part of the House.

Rep. H. BROWN explained the Free Conference Report.
Rep. WALKER spoke upon the Free Conference Report.
Rep. DAVENPORT spoke against the Free Conference Report.
Rep. SHEHEEN spoke against the Free Conference Report.
Rep. H. BROWN spoke in favor of the Free Conference Report.
Rep. BARRETT spoke against the Free Conference Report.

The question then recurred to the adoption of the Free Conference Report.

Rep. LOFTIS demanded the yeas and nays, which were taken, resulting as follows:

Yeas 68; Nays 41

Those who voted in the affirmative are:

Allison                Bailey                 Bales
Battle                 Beck                   Breeland
Brown G.               Brown H.               Brown J.
Carnell                Chellis                Clyburn
Cotty                  Dantzler               Edge
Emory                  Gilham                 Gourdine
Govan                  Harrell                Harris
Harvin                 Hawkins                Hayes
Hines J.               Hinson                 Hosey
Howard                 Jennings               Keegan
Kelley                 Kennedy                Klauber
Knotts                 Koon                   Law
Lee                    Limehouse              Lourie
Lucas                  Martin                 McCraw
McLeod M.              McLeod W.              Moody-Lawrence
Neal J.M.              Neilson                Parks
Phillips               Quinn                  Rhoad
Riser                  Rodgers                Rutherford
Scott                  Seithel                Smith F.
Smith R.               Stuart                 Taylor
Townsend               Webb                   Whatley
Wilder                 Wilkes                 Wilkins
Witherspoon            Young-Brickell

Total--68

Those who voted in the negative are:

Altman                 Barfield               Barrett
Brown T.               Campsen                Canty
Cato                   Cooper                 Davenport
Delleney               Easterday              Fleming
Frye                   Gamble                 Hamilton
Haskins                Inabinett              Kirsh
Lanford                Leach                  Littlejohn
Lloyd                  Loftis                 Maddox
McGee                  Meacham                Miller
Neal                   Ott                    Pinckney
Rice                   Robinson               Sandifer
Sharpe                 Sheheen                Simrill
Smith D.               Tripp                  Trotter
Vaughn                 Walker

Total--41

So, the Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

STATEMENT FOR THE JOURNAL

While I voted against the Appropriations Bill, I voted to grant Free Conference powers so that our House conferees would be able to insert automobile tax relief in the Bill.

Rep. HASKINS

STATEMENT FOR THE JOURNAL

This year's budget as passed by the Senate and House Conference Committee contained some expenditures on some worthy projects such as increased pay for teachers, raises for all state employees, increased homeowner property tax relief, tax relief for senior citizens, increased pay for election poll workers, increased funding for adult education, $500,000 dollars for renovations to Union County Airport and $200,000 dollars for renovations to Truluck Gymnasium at USCU.

Overall, the best expenditure in the budget was $20 million dollars in tax relief for automobiles. I have consistently stated that I support tax relief as well as elimination on automobiles as well as homes. For the reasons stated above, I voted for Free Conference Powers on the Budget. Without giving Free Conference Powers to the Conference Committee, we would not have been able to get automobile tax relief.

Although I support all of the good initiatives above, especially the expenditures for the Union County Airport and Truluck Gymnasium, this year's budget increased 11% over last year's budget. The reason for this was increased government due to unneeded programs such as the "first steps" program proposed by Governor Hodges which will cost the taxpayers of this State $20 million dollars. This program is an example of unneeded government programs. This program will do nothing to better education and in fact is an expansion of welfare. This program is full of giveaways such as immunization, which is already provided through the W.I.C.K. Program, daycare, and parenting classes which are provided through D.S.S. I predict that next year Governor Hodges will propose to spend over $100 million dollars on this program. For the reasons stated above, I voted against the Conference Report on the Budget. Hopefully, next year we will give more tax relief to the people. This year's was very little, $20 million dollars when the State received over $700 million in new revenue.

Rep. FLEMING

H. 3697-- FREE CONFERENCE POWERS GRANTED

Rep. H. BROWN moved that the Committee of Conference on the following Joint Resolution be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3697 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1998-99.

The yeas and nays were taken resulting as follows:

Yeas 92; Nays 4

Those who voted in the affirmative are:

Allison                Bailey                 Bales
Barfield               Barrett                Battle
Beck                   Bowers                 Brown G.
Brown H.               Brown J.               Campsen
Carnell                Cato                   Chellis
Clyburn                Cotty                  Dantzler
Delleney               Edge                   Emory
Fleming                Frye                   Gamble
Gilham                 Gourdine               Govan
Hamilton               Harrell                Harris
Harvin                 Haskins                Hawkins
Hayes                  Hines J.               Hinson
Hosey                  Jennings               Keegan
Kelley                 Kennedy                Kirsh
Klauber                Knotts                 Koon
Lanford                Law                    Leach
Lee                    Limehouse              Littlejohn
Lourie                 Maddox                 Martin
McCraw                 McGee                  McLeod M.
McLeod W.              Meacham                Miller
Moody-Lawrence         Neal J.M.              Ott
Parks                  Phillips               Quinn
Rhoad                  Rice                   Riser
Robinson               Rodgers                Sandifer
Scott                  Seithel                Sharpe
Sheheen                Simrill                Smith D.
Smith F.               Smith R.               Stuart
Taylor                 Townsend               Tripp
Trotter                Walker                 Webb
Wilder                 Wilkes                 Wilkins
Witherspoon            Young-Brickell

Total--92

Those who voted in the negative are:

Altman                 Cooper                 Davenport
Stille

Total--4

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

The Committee of Conference was thereby resolved into a Committee of Free Conference. The SPEAKER appointed Reps. H. BROWN, HARRELL and ALLISON to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

H. 3697 -- FREE CONFERENCE REPORT ADOPTED

FREE CONFERENCE REPORT

The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:

H. 3697 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1998-99.
Beg leave to report that they have duly and carefully considered the same and recommend:
Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting therein the following:

/ SECTION     1.     In accordance with the provisions of Article III, (B) 11-11-320(C) and (D) of the 1976 Code, there is appropriated from the monies available in the Capital Reserve Fund for fiscal year 1998-99 the following amounts:

(1)     Aid to Subdivisions-Local Government Fund         $6,500,000

(2)     Department of Education

School Building Aid                                                                                                         4,968,915

(Funds appropriated for School Building Aid shall be transferred to a special trust fund established by the Comptroller General. Funds appropriated shall be distributed to the school districts of the State for use in accordance with Section 59-21-350 of the Code of Laws of South Carolina, 1976. Funds shall be allocated to eligible school districts on a per pupil basis. The allocation must be based on the 135-day count of average daily membership for the second preceding fiscal year. Funds appropriated for school building aid may be expended by the school district without approval from the State Board of Education. The Department of Education shall require that school districts include in their annual audit a verification of compliance with all applicable state laws associated with the use of these funds.)

(3)     Commission on Higher Education

Performance Funding                                                                                                 55,901,106

(Funds appropriated in this joint resolution or any other appropriations bill for education and general expenditures at the public higher education institutions shall be used to implement Act 359 of 1996.)

(4)     Department of Health and Human Services

Phyllis Wheatley Community Center Capital

Campaign-Greenville                                                                                                 200,000

(5)     Commission for the Blind

(a)     Facilities Upgrade                                                                                             38,358

(b)     Building Renovation/Maintenance                                                     230,000

(6)     Department of Agriculture

(a)     Coker Experimental Feed Farm Preservation                     350,000

(b)     Lexington Livestock Arena                                                                     250,000

(7)     Department of Natural Resources

(a)     Law Enforcement

Aircraft Maintenance                                                                                             95,000

(b)     MRD: Maintenance and Equipment                                                 530,000

(c)     Lake Ashwood Facility                                                                                 100,000

(8)     Department of Commerce

(a)     Advertising                                                                                                                 1,000,000

(b)     Union County

Airport Improvements                                                                                         500,000

(9)     Patriots Point Development Authority

Cold War Submarine Memorial                                                                             250,000

(10)     Department of Corrections

Transportation/Communication Equipment                                         1,558,050

(11)     Department of Probation, Parole and Pardon Services

Safety Equipment for Agents                                                                             247,907

(12)     Department of Public Safety

(a) Trooper Class, Vehicles and Equipment                             5,011,716

(b) DMV Computer System                                                                     9,000,000

(13)     Human Affairs Commission

Computer System - Y2K Compliance                                                     95,697

(14)     Commission on Minority Affairs

(a)     Relocation Funding & Rent Increase                                             24,788

(b)     Men's Service Centers                                                                             13,891

(15)     State Treasurer

Y2K Compliance                                                                                                         119,350

(16)     Election Commission

Year 2000 Primary and Runoff                                                                 1,673,440

(17)     Budget and Control Board

(a)     Division of Operations

Governor's Mansion Renovation                                                     2,604,224

(b)     Division of Budget and Analyses

Confederate Relic Room

Relocation/Building Renovation                                                         451,880

(18)     State Ethics Commission

Computer System                                                                                                         52,000

TOTAL                                                                                                                 91,766,322

SECTION     2.     The Comptroller General shall post the appropriations contained in this joint resolution in fiscal year 1999-2000. Unexpended funds appropriated pursuant to this joint resolution may be carried forward to succeeding fiscal years and expended for the same purpose.

SECTION     3.     This joint resolution takes effect thirty days after the completion of the 1998-99 fiscal year in accordance with the provisions of Article III, Section 36(B)(3)(a), Constitution of South Carolina,

1895, and Section 11-11-320(D)(1) of the 1976 Code./

Amend title to conform.

/s/John Drummond                  /s/Henry E. Brown, Jr.
/s/Nikki G. Setzler               /s/Robert W. Harrell, Jr.
/s/Glenn F. McConnell             /s/Merita A. Allison
On Part of the Senate.                 On Part of the House.

The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

H. 3963 -- FREE CONFERENCE POWERS GRANTED

Rep. QUINN moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.

The yeas and nays were taken resulting as follows:

Yeas 88; Nays 0

Those who voted in the affirmative are:

Bailey                 Bales                  Barfield
Barrett                Battle                 Beck
Bowers                 Brown H.               Brown J.
Brown T.               Campsen                Carnell
Cato                   Chellis                Clyburn
Cooper                 Cotty                  Dantzler
Delleney               Easterday              Edge
Emory                  Fleming                Frye
Gamble                 Gilham                 Govan
Hamilton               Harrell                Harris
Harvin                 Hawkins                Hayes
Hinson                 Hosey                  Inabinett
Jennings               Keegan                 Kelley
Kirsh                  Klauber                Knotts
Lanford                Law                    Leach
Lee                    Limehouse              Lloyd
Maddox                 Martin                 McCraw
McGee                  McLeod W.              Meacham
Miller                 Neal J.M.              Neilson
Ott                    Parks                  Phillips
Pinckney               Quinn                  Rice
Riser                  Robinson               Rodgers
Rutherford             Sandifer               Scott
Seithel                Sharpe                 Sheheen
Simrill                Smith D.               Smith F.
Smith R.               Stille                 Stuart
Taylor                 Townsend               Tripp
Trotter                Vaughn                 Webb
Whatley                Wilder                 Wilkins
Young-Brickell

Total--88

Those who voted in the negative are:

Total--0

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

The Committee of Conference was thereby resolved into a Committee of Free Conference. The SPEAKER appointed Reps. QUINN, ROBINSON and LIMEHOUSE to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

H. 3963 -- FREE CONFERENCE REPORT ADOPTED
FREE CONFERENCE REPORT
H. 3963
The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/     SECTION     1.     Notwithstanding any other provision of law, if a property tax equalization and reassessment is occurring for a particular year in taxing districts located in one county of Richland-Lexington School District 5 but not in taxing districts of the other county, then the school board of trustees shall set an equivalent millage to be used to compute the ad valorem property taxes in the taxing districts of reassessment until a reassessment occurs in the taxing districts of the other county. The equivalent millage to be set by the school board of trustees shall be determined by methodology established by the respective county auditors which shall be consistent with the methodology used to calculate equivalent millage pursuant to Section 12-37-251 of the 1976 Code.

The purpose of this section is to equalize the tax burdens within this school district. In computing equivalent millage for purposes of the Trust Fund for Tax Relief regarding Richland-Lexington School District 5, the equivalent millage calculation shall also be made on a taxing district basis rather than on a school district basis.

SECTION     2.     This act takes effect upon approval by the Governor./

Amend title to conform.

/s/John Courson                   /s/Richard Quinn
/s/Thomas Alexander               /s/Harry Limehouse
/s/Luke Rankin                    /s/Alfred Robinson
On Part of the Senate.            On Part of the House.

The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has requested and granted Free Conference powers and appointed Senators Moore, Passailaigue and Hayes of the Committee of Free Conference on the part of the Senate on H. 3002:
H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
Very respectfully,
President
Received as information.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on H. 3002:
H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
Very respectfully,
President

Received as information.

Rep. TRIPP moved that the House recede until 2:30 P.M., which was agreed to.

THE HOUSE RESUMES

At 2:30 P.M. the House resumed, the SPEAKER in the Chair.

POINT OF QUORUM

The question of a quorum was raised.
A quorum was later present.

ACTING SPEAKER LEACH IN CHAIR
SPEAKER IN CHAIR
MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has requested and been granted Free Conference powers and appointed Senators Courson, Alexander and Rankin of the Committee of Free Conference on the part of the Senate on H. 3963:

H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
President
Received as information.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on H. 3963:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
President

Received as information.

H. 3963 -- ORDERED ENROLLED FOR RATIFICATION

The Report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act and that it be enrolled for Ratification.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses ordered that the title be changed to that of an Act and the Act enrolled for Ratification:
H. 3696 -- Ways and Means Committee: GENERAL APPROPRIATION BILL

The Senate has ordered the Bill Enrolled for Ratification.
Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses ordered that the title be changed to that of an Act, and the Act enrolled for Ratification:
H. 3697 (Word version) -- Ways and Means Committee: CAPITAL RESERVE BILL

The Senate has ordered the Bill Enrolled for Ratification.
Very respectfully,
President

Received as information.

POINT OF QUORUM

The question of a quorum was raised.
A quorum was later present.

H. 3641 -- FREE CONFERENCE POWERS GRANTED

Rep. R. SMITH moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.

The yeas and nays were taken resulting as follows:

Yeas 93; Nays 0

Those who voted in the affirmative are:

Allen                  Allison                Askins
Bailey                 Bales                  Barfield
Barrett                Battle                 Beck
Breeland               Brown G.               Brown H.
Carnell                Cato                   Chellis
Clyburn                Cooper                 Cotty
Dantzler               Delleney               Easterday
Edge                   Emory                  Fleming
Frye                   Gamble                 Gilham
Gourdine               Govan                  Hamilton
Harrell                Harris                 Harvin
Haskins                Hawkins                Hayes
Hinson                 Hosey                  Inabinett
Keegan                 Kelley                 Kennedy
Klauber                Knotts                 Koon
Law                    Leach                  Lee
Littlejohn             Lloyd                  Loftis
Lourie                 Lucas                  Martin
McCraw                 McGee                  McLeod M.
McLeod W.              Meacham                Miller
Neal J.M.              Neilson                Ott
Parks                  Phillips               Quinn
Rhoad                  Rice                   Riser
Robinson               Rodgers                Rutherford
Sandifer               Scott                  Seithel
Sharpe                 Sheheen                Simrill
Smith D.               Smith F.               Smith R.
Stille                 Stuart                 Taylor
Townsend               Tripp                  Trotter
Vaughn                 Whatley                Wilder
Wilkes                 Wilkins                Witherspoon

Total--93

Those who voted in the negative are:

Total--0

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

The Committee of Conference was thereby resolved into a Committee of Free Conference. The SPEAKER appointed Reps. R. SMITH, EDGE and QUINN to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

H. 3641 -- FREE CONFERENCE REPORT ADOPTED
FREE CONFERENCE REPORT

H. 3641

The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 6/3/99--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/     SECTION     1.     Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Article 9
Development Impact Fees

Section 6-1-910.         This article may be cited as the 'South Carolina Development Impact Fee Act'.

Section 6-1-920.         As used in this article:

(1)     'Affordable housing' means housing affordable to families whose incomes do not exceed eighty percent of the median income for the service area or areas within the jurisdiction of the governmental entity.

(2)     'Capital improvements' means improvements with a useful life of five years or more, by new construction or other action, which increase or increased the service capacity of a public facility.

(3)     'Capital improvements plan' means a plan that identifies capital improvements for which development impact fees may be used as a funding source.

(4)     'Connection charges' and 'hookup charges' mean charges for the actual cost of connecting a property to a public water or public sewer system, limited to labor and materials involved in making pipe connections, installation of water meters, and other actual costs.

(5)     'Developer' means an individual or corporation, partnership, or other entity undertaking development.

(6)     'Development' means construction or installation of a new building or structure, or a change in use of a building or structure, any of which creates additional demand and need for public facilities. A building or structure shall include, but not be limited to, modular buildings and manufactured housing. 'Development' does not include alterations made to existing single-family homes.

(7)     'Development approval' means a document from a governmental entity which authorizes the commencement of a development.

(8)     'Development impact fee' or 'impact fee' means a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements. The term does not include:

(a)     a charge or fee to pay the administrative, plan review, or inspection costs associated with permits required for development;

(b)     connection or hookup charges;

(c)     amounts collected from a developer in a transaction in which the governmental entity has incurred expenses in constructing capital improvements for the development if the owner or developer has agreed to be financially responsible for the construction or installation of the capital improvements;

(d)     fees authorized by Article 3 of this chapter.

(9)     'Development permit' means a permit issued for construction on or development of land when no subsequent building permit issued pursuant to Chapter 9 of Title 6 is required.

(10)     'Fee payor' means the individual or legal entity that pays or is required to pay a development impact fee.

(11)     'Governmental entity' means a county, as provided in Chapter 9, Title 4, and a municipality, as defined in Section 5-1-20.

(12)     'Incidental benefits' are benefits which accrue to a property as a secondary result or as a minor consequence of the provision of public facilities to another property.

(13)     'Land use assumptions' means a description of the service area and projections of land uses, densities, intensities, and population in the service area over at least a ten-year period.

(14)     'Level of service' means a measure of the relationship between service capacity and service demand for public facilities.

(15)     'Local planning commission' means the entity created pursuant to Article 1, Chapter 29, Title 6.

(16)     'Project' means a particular development on an identified parcel of land.

(17)     'Proportionate share' means that portion of the cost of system improvements determined pursuant to Section 6-1-990 which reasonably relates to the service demands and needs of the project.

(18)     'Public facilities' means:

(a)     water supply production, treatment, laboratory, engineering, administration, storage, and transmission facilities;

(b)     waste water collection, treatment, laboratory, engineering, administration, and disposal facilities;

(c)     solid waste and recycling collection, treatment, and disposal facilities;

(d)     roads, streets, and bridges including, but not limited to, rights-of-way and traffic signals;

(e)     storm water transmission, retention, detention, treatment, and disposal facilities and flood control facilities;

(f)         public safety facilities, including law enforcement, fire, emergency medical and rescue, and street lighting facilities.

(g)     capital equipment and vehicles, with an individual unit purchase price of not less than one hundred thousand dollars including, but not limited to, equipment and vehicles used in the delivery of public safety services, emergency preparedness services, collection and disposal of solid waste, and storm water management and control.

(h)     parks, libraries, and recreational facilities.

(19)     'Service area' means, based on sound planning or engineering principles, or both, a defined geographic area in which specific public facilities provide service to development within the area defined. Provided, however, that no provision in this article may be interpreted to alter, enlarge, or reduce the service area or boundaries of a political subdivision which is authorized or set by law.

(20)     'Service unit' means a standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements.

(21)     'System improvements' means capital improvements to public facilities which are designed to provide service to a service area.

(22)     'System improvement costs' means costs incurred for construction or reconstruction of system improvements, including design, acquisition, engineering, and other costs attributable to the improvements, and also including the costs of providing additional public facilities needed to serve new growth and development. System improvement costs do not include:

(a)     construction, acquisition, or expansion of public facilities other than capital improvements identified in the capital improvements plan;

(b)     repair, operation, or maintenance of existing or new capital improvements;

(c)     upgrading, updating, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental, or regulatory standards;

(d)     upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development;

(e)     administrative and operating costs of the governmental entity; or

(f)         principal payments and interest or other finance charges on bonds or other indebtedness except financial obligations issued by or on behalf of the governmental entity to finance capital improvements identified in the capital improvements plan.

Section 6-1-930.         (A) (1)     Only a governmental entity that has a comprehensive plan, as provided in Chapter 29 of this title, and which complies with the requirements of this article may impose a development impact fee. If a governmental entity has not adopted a comprehensive plan, but has adopted a capital improvements plan which substantially complies with the requirements of Section 6-1-960(B), then it may impose a development impact fee. A governmental entity may not impose an impact fee, regardless of how it is designated, except as provided in this article. However, a special purpose district or public service district which (a) provides fire protection services or recreation services, (b) was created by act of the General Assembly prior to 1973, and (c) had the power to impose development impact fees prior to the effective date of this section is not prohibited from imposing development impact fees.

(2)     Before imposing a development impact fee on residential units, a governmental entity shall prepare a report which estimates the effect of recovering capital costs through impact fees on the availability of affordable housing within the political jurisdiction of the governmental entity.

(B)(1)     An impact fee may be imposed and collected by the governmental entity only upon the passage of an ordinance approved by a positive majority, as defined in Article 3 of this chapter.

(2)     The amount of the development impact fee must be based on actual improvement costs or reasonable estimates of the costs, supported by sound engineering studies.

(3)     An ordinance authorizing the imposition of a development impact fee must:

(a)     establish a procedure for timely processing of applications for determinations by the governmental entity of development impact fees applicable to all property subject to impact fees and for the timely processing of applications for individual assessment of development impact fees, credits, or reimbursements allowed or paid under this article;

(b)     include a description of acceptable levels of service for system improvements; and

(c)     provide for the termination of the impact fee.

(C)     A governmental entity shall prepare and publish an annual report describing the amount of all impact fees collected, appropriated, or spent during the preceding year by category of public facility and service area.

(D)     Payment of an impact fee may result in an incidental benefit to property owners or developers within the service area other than the fee payor, except that an impact fee that results in benefits to property owners or developers within the service area, other than the fee payor, in an amount which is greater than incidental benefits is prohibited.

Section 6-1-940.         A governmental entity imposing an impact fee must provide in the impact fee ordinance the amount of impact fee due for each unit of development in a project for which an individual building permit or certificate of occupancy is issued. The governmental entity is bound by the amount of impact fee specified in the ordinance and may not charge higher or additional impact fees for the same purpose unless the number of service units increases or the scope of the development changes and the amount of additional impact fees is limited to the amount attributable to the additional service units or change in scope of the development. The impact fee ordinance must:

(1)     include an explanation of the calculation of the impact fee, including an explanation of the factors considered pursuant to this article;

(2)     specify the system improvements for which the impact fee is intended to be used;

(3)     inform the developer that he may pay a project's proportionate share of system improvement costs by payment of impact fees according to the fee schedule as full and complete payment of the developer's proportionate share of system improvements costs;

(4)     inform the fee payor that:

(a)     he may negotiate and contract for facilities or services with the governmental entity in lieu of the development impact fee as defined in Section 6-1-1050;

(b)     he has the right of appeal, as provided in Section 6-1-1030;

(c)     the impact fee must be paid no earlier than the time of issuance of the building permit or issuance of a development permit if no building permit is required.

Section 6-1-950.         (A)     The governing body of a governmental entity begins the process for adoption of an ordinance imposing an impact fee by enacting a resolution directing the local planning commission to conduct the studies and to recommend an impact fee ordinance, developed in accordance with the requirements of this article. Under no circumstances may the governing body of a governmental entity impose an impact fee for any public facility which has been paid for entirely by the developer.

(B)     Upon receipt of the resolution enacted pursuant to subsection (A), the local planning commission shall develop, within the time designated in the resolution, and make recommendations to the governmental entity for a capital improvements plan and impact fees by service unit. The local planning commission shall prepare and adopt its recommendations in the same manner and using the same procedures as those used for developing recommendations for a comprehensive plan as provided in Article 3, Chapter 29, Title 6, except as otherwise provided in this article. The commission shall review and update the capital improvements plan and impact fees in the same manner and on the same review cycle as the governmental entity's comprehensive plan or elements of it.

Section 6-1-960.         (A)     The local planning commission shall recommend to the governmental entity a capital improvements plan which may be adopted by the governmental entity by ordinance. The recommendations of the commission are not binding on the governmental entity, which may amend or alter the plan. After reasonable public notice, a public hearing must be held before final action to adopt the ordinance approving the capital improvements plan. The notice must be published not less than thirty days before the time of the hearing in at least one newspaper of general circulation in the county. The notice must advise the public of the time and place of the hearing, that a copy of the capital improvements plan is available for public inspection in the offices of the governmental entity, and that members of the public will be given an opportunity to be heard.

(B)     The capital improvements plan must contain:

(1)     a general description of all existing public facilities, and their existing deficiencies, within the service area or areas of the governmental entity, a reasonable estimate of all costs, and a plan to develop the funding resources, including existing sources of revenues, related to curing the existing deficiencies including, but not limited to, the upgrading, updating, improving, expanding, or replacing of these facilities to meet existing needs and usage;

(2)     an analysis of the total capacity, the level of current usage, and commitments for usage of capacity of existing public facilities, which must be prepared by a qualified professional using generally accepted principles and professional standards;

(3)     a description of the land use assumptions;

(4)     a definitive table establishing the specific service unit for each category of system improvements and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, agricultural, and industrial, as appropriate;

(5)     a description of all system improvements and their costs necessitated by and attributable to new development in the service area, based on the approved land use assumptions, to provide a level of service not to exceed the level of service currently existing in the community or service area, unless a different or higher level of service is required by law, court order, or safety consideration;

(6)     the total number of service units necessitated by and attributable to new development within the service area based on the land use assumptions and calculated in accordance with generally accepted engineering or planning criteria;

(7)     the projected demand for system improvements required by new service units projected over a reasonable period of time not to exceed twenty years;

(8)     identification of all sources and levels of funding available to the governmental entity for the financing of the system improvements; and

(9)     a schedule setting forth estimated dates for commencing and completing construction of all improvements identified in the capital improvements plan.

(C)     Changes in the capital improvements plan must be approved in the same manner as approval of the original plan.

Section 6-1-970.         The following structures or activities are exempt from impact fees:

(1)     rebuilding the same amount of floor space of a structure that was destroyed by fire or other catastrophe;

(2)     remodeling or repairing a structure that does not result in an increase in the number of service units;

(3)     replacing a residential unit, including a manufactured home, with another residential unit on the same lot, if the number of service units does not increase;

(4)     placing a construction trailer or office on a lot during the period of construction on the lot;

(5)     constructing an addition on a residential structure which does not increase the number of service units;

(6)     adding uses that are typically accessory to residential uses, such as a tennis court or a clubhouse, unless it is demonstrated clearly that the use creates a significant impact on the system's capacity; and

(7)     all or part of a particular development project if:

(a)     the project is determined to create affordable housing; and

(b)     the exempt development's proportionate share of system improvements is funded through a revenue source other than development impact fees.

Section 6-1-980.         (A)     The impact fee for each service unit may not exceed the amount determined by dividing the costs of the capital improvements by the total number of projected service units that potentially could use the capital improvement. If the number of new service units projected over a reasonable period of time is less than the total number of new service units shown by the approved land use assumptions at full development of the service area, the maximum impact fee for each service unit must be calculated by dividing the costs of the part of the capital improvements necessitated by and attributable to the projected new service units by the total projected new service units.

(B)     An impact fee must be calculated in accordance with generally accepted accounting principles.

Section 6-1-990.     (A)     The impact fee imposed upon a fee payor may not exceed a proportionate share of the costs incurred by the governmental entity in providing system improvements to serve the new development. The proportionate share is the cost attributable to the development after the governmental entity reduces the amount to be imposed by the following factors:

(1)     appropriate credit, offset, or contribution of money, dedication of land, or construction of system improvements; and

(2)     all other sources of funding the system improvements including funds obtained from economic development incentives or grants secured which are not required to be repaid.

(B)     In determining the proportionate share of the cost of system improvements to be paid, the governmental entity imposing the impact fee must consider the:

(1)     cost of existing system improvements resulting from new development within the service area or areas;

(2)     means by which existing system improvements have been financed;

(3)     extent to which the new development contributes to the cost of system improvements;

(4)     extent to which the new development is required to contribute to the cost of existing system improvements in the future;

(5)     extent to which the new development is required to provide system improvements, without charge to other properties within the service area or areas;

(6)     time and price differentials inherent in a fair comparison of fees paid at different times; and

(7)     availability of other sources of funding system improvements including, but not limited to, user charges, general tax levies, intergovernmental transfers, and special taxation.

Section 6-1-1000.     A developer required to pay a development impact fee may not be required to pay more than his proportionate share of the costs of the project, including the payment of money or contribution or dedication of land, or to oversize his facilities for use of others outside of the project without fair compensation or reimbursement.

Section 6-1-1010.     (A)     Revenues from all development impact fees must be maintained in one or more interest-bearing accounts. Accounting records must be maintained for each category of system improvements and the service area in which the fees are collected. Interest earned on development impact fees must be considered funds of the account on which it is earned, and must be subject to all restrictions placed on the use of impact fees pursuant to the provisions of this article.

(B)     Expenditures of development impact fees must be made only for the category of system improvements and within or for the benefit of the service area for which the impact fee was imposed as shown by the capital improvements plan and as authorized in this article. Impact fees may not be used for:

(1)     a purpose other than system improvement costs to create additional improvements to serve new growth;

(2)     a category of system improvements other than that for which they were collected; or

(3)     the benefit of service areas other than the area for which they were imposed.

Section 6-1-1020.     (A)     An impact fee must be refunded to the owner of record of property on which a development impact fee has been paid if:

(1)     the impact fees have not been expended within three years of the date they were scheduled to be expended on a first-in, first-out basis; or

(2)     a building permit or permit for installation of a manufactured home is denied.

(B)     When the right to a refund exists, the governmental entity shall send a refund to the owner of record within ninety days after it is determined by the entity that a refund is due.

(C)     A refund must include the pro rata portion of interest earned while on deposit in the impact fee account.

(D)     A person entitled to a refund has standing to sue for a refund pursuant to this article if there has not been a timely payment of a refund pursuant to subsection (B) of this section.

Section 6-1-1030.     (A)     A governmental entity which adopts a development impact fee ordinance shall provide for administrative appeals by the developer or fee payor.

(B)     A fee payor may pay a development impact fee under protest. A fee payor making the payment is not estopped from exercising the right of appeal provided in this article, nor is the fee payor estopped from receiving a refund of an amount considered to have been illegally collected. Instead of making a payment of an impact fee under protest, a fee payor, at his option, may post a bond or submit an irrevocable letter of credit for the amount of impact fees due, pending the outcome of an appeal.

(C)     A governmental entity which adopts a development impact fee ordinance shall provide for mediation by a qualified independent party, upon voluntary agreement by both the fee payor and the governmental entity, to address a disagreement related to the impact fee for proposed development. Participation in mediation does not preclude the fee payor from pursuing other remedies provided for in this section or otherwise available by law.

Section 6-1-1040.     A governmental entity may provide in a development impact fee ordinance the method for collection of development impact fees including, but not limited to:

(1)     additions to the fee for reasonable interest and penalties for nonpayment or late payment;

(2)     withholding of the certificate of occupancy, or building permit if no certificate of occupancy is required, until the development impact fee is paid;

(3)     withholding of utility services until the development impact fee is paid; and

(4)     imposing liens for failure to pay timely a development impact fee.

Section 6-1-1050.     A fee payor and developer may enter into an agreement with a governmental entity, including an agreement entered into pursuant to the South Carolina Local Government Development Agreement Act, providing for payments instead of impact fees for facilities or services. That agreement may provide for the construction or installation of system improvements by the fee payor or developer and for credits or reimbursements for costs incurred by a fee payor or developer including interproject transfers of credits or reimbursement for project improvements which are used or shared by more than one development project. An impact fee may not be imposed on a fee payor or developer who has entered into an agreement as described in this section.

Section 6-1-1060.     (A)     The provisions of this article do not repeal existing laws authorizing a governmental entity to impose fees or require contributions or property dedications for capital improvements. A development impact fee adopted in accordance with existing laws before the enactment of this article is not affected until termination of the development impact fee. A subsequent change or reenactment of the development impact fee must comply with the provisions of this article. Requirements for developers to pay in whole or in part for system improvements may be imposed by governmental entities only by way of impact fees imposed pursuant to the ordinance.

(B)     Notwithstanding another provision of this article, property for which a valid building permit or certificate of occupancy has been issued or construction has commenced before the effective date of a development impact fee ordinance is not subject to additional development impact fees.

Section 6-1-1070.     (A)     If the proposed system improvements include the improvement of public facilities under the jurisdiction of another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, an agreement between the governmental entity and other unit of government must specify the reasonable share of funding by each unit. The governmental entity authorized to impose impact fees may not assume more than its reasonable share of funding joint improvements, nor may another unit of government which is not authorized to impose impact fees do so unless the expenditure is pursuant to an agreement under Section 6-1-1050 of this section.

(B)     A governmental entity may enter into an agreement with another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public service district, that has the responsibility of providing the service for which an impact fee may be imposed. The determination of the amount of the impact fee for the contracting governmental entity must be made in the same manner and is subject to the same procedures and limitations as provided in this article. The agreement must provide for the collection of the impact fee by the governmental entity and for the expenditure of the impact fee by another unit of government including, but not limited to, a special purpose district that does not provide water and waste water utilities, a school district, and a public services district unless otherwise provided by contract.

Section 6-1-1080.     The provisions of this chapter do not apply to a development impact fee for water or wastewater utilities, or both, imposed by a city, county, commissioners of public works, special purpose district, or nonprofit corporation organized pursuant to Chapter 35 or 36 of Title 33, except that in order to impose a development impact fee for water or wastewater utilities, or both, the city, county, commissioners of public works, special purpose district or nonprofit corporation organized pursuant to Chapter 35 or 36 of Title 33 must:

(1)     have a capital improvements plan before imposition of the development impact fee; and

(2)     prepare a report to be made public before imposition of the development impact fee, which shall include, but not be limited to, an explanation of the basis, use, calculation, and method of collection of the development impact fee; and

(3)     enact the fee in accordance with the requirements of Article 3 of this chapter.

Section 6-1-1090.     A county development impact fee ordinance imposed in an area which is annexed by a municipality is not affected by this article until the development impact fee terminates, unless the municipality assumes any liability which is to be paid with the impact fee revenue.

Section 6-1-2000.     This article shall not create, grant, or confer any new or additional taxing or revenue raising authority to a political subdivision which was not specifically granted to that entity by a previous act of the General Assembly.

Section 6-1-2010.     Compliance with any requirement for public notice or public hearing in this article is considered to be in compliance with any other public notice or public hearing requirement otherwise applicable including, but not limited to, the provisions of Chapter 4, Title 30, and Article 3 of this chapter."

SECTION     2.     Chapter 37, Title 5 of the 1976 Code is amended to read:

"CHAPTER 37

Section 5-37-10.     This chapter may be referred to as 'the 'Municipal Improvement Act of 1973 1999', and any municipal corporation of this State is hereby authorized to exercise the powers and provisions hereof.

Section 5-37-20.         As used in this chapter, the following terms shall have the following meanings:

(1)     'Assessment' means a charge against the real property of an owner within an improvement district created pursuant to this chapter which is may be based either on assessed value, front footage, area, per parcel basis, the value of improvements to be constructed within the district, or any combination of them, as the basis is determined by the governing body of the municipality. In the event the governing body of a municipality determines that another basis for assessment is appropriate or a more equitable allocation of costs among property owners is appropriate, it may substitute such method for any of the foregoing. An assessment imposed upon real property under this chapter remains valid and enforceable in accordance with the provisions of this chapter even if there is a later subdivision and transfer of the property or a part of it. An improvement plan may provide for a change in the basis of assessment upon the subdivision and transfer of real property or upon such other event as the governing body of a municipality considers appropriate.

(2)     'Improvements' include open or covered malls, parkways, parks and playgrounds, recreation facilities, athletic facilities, pedestrian facilities, parking facilities, parking garages, and underground parking facilities, and facade redevelopment, the widening and dredging of existing channels, canals, and waterways used specifically for recreational or other purposes, the relocation, construction, widening, and paving of streets, roads, and bridges, including demolition of them, underground utilities, all activities authorized by Chapter 1 of Title 31 (State Housing Law), any building or other facilities for public use, any public works eligible for financing under the provisions of Section 6-21-50, and all things incidental to the improvements, including planning, engineering, administration, managing, promotion, marketing, and acquisition of necessary easements and land, and may include facilities for lease or use by a private person, firm, or corporation. However, improvements as defined in this chapter must comply with all applicable state and federal laws and regulations governing these activities. Any such improvements may be designated by the governing body as public works eligible for revenue bond financing pursuant to Section 6-21-50, and such improvements, taken in the aggregate, may be designated by the governing body as a 'system' of related projects within the meaning of Section 6-21-40. The governing body of a municipality, after due investigation and study, may determine that improvements located outside the boundaries of an improvement district confer a benefit upon property inside an improvement district or are necessary to make improvements within the improvement district effective for the benefit of property inside the improvement district.

(3)     'Improvement district' means any area within the municipality designated by the governing body pursuant to the provisions of this chapter and within which an improvement plan is to be accomplished. No special improvement district may include the grounds of the State House in the City of Columbia.

(4)     'Improvement plan' means an overall plan by which the governing body proposes to effect improvements within an improvement district to preserve property values, prevent deterioration of urban areas, and preserve the tax base of the municipality, and includes an overall plan by which the governing body proposes to effect improvements within an improvement district in order to encourage and promote private or public development within the improvement district.

(5)     'Governing body' shall mean means the municipal council or other governing body in which the general governing powers of the municipality are vested.

(6)     'Owner' is defined as means any person twenty-one years of age, or older, or the proper legal representative for any person younger than twenty-one years of age, and any firm or corporation, who or which owns legal title to a present possessory interest in real estate equal to a life estate or greater (expressly excluding leaseholds, easements, equitable interests, inchoate rights, dower rights, and future interest) and who owns, at the date of the petition or written consent, at least an undivided one-tenth interest in a single tract and whose name appears on the county tax records as an owner of real estate, and any duly organized group whose total interest is at least equal to a one-tenth interest in a single tract.

It is provided, however, that, if any firm or person has a leasehold interest requiring it or him to pay all municipal taxes, such agreement shall not be applicable to charges of the assessment of the district as only the owner has the right to petition on the assessment charge for the improvement district.

Section 5-37-25.         A municipality must obtain the consent of the county governing body and any other municipality where the improvement is located to use revenue collected pursuant to this chapter for improvements located outside the municipal boundaries in which the improvement district is located.

Section 5-37-30.         The governing body is authorized, within the corporate limits of the city, to acquire, own, construct, establish, install, enlarge, improve, expand, operate, maintain and repair, and sell, lease, and otherwise dispose of any improvement and to finance such acquisition, construction, establishment, installation, enlargement, improvement, expansion, operation, maintenance, and repair, in whole or in part, by the imposition of assessments in accordance with this chapter, by special district bonds, by general obligation bonds of the municipality, by revenue bonds of the municipality, or from general revenues from any source not restricted from such use by law, or by any combination of such funding sources. In addition to any other authorization provided herein or by other law, the governing body of a municipality may issue its special district bonds or revenue bonds of the municipality under such terms and conditions as the governing body may determine by ordinance subject to the following: such bonds may be sold at public or private sale for such price as is determined by the governing body; such bonds may be secured by a pledge of and be payable from the assessments authorized herein or any other source of funds not constituting a general tax as may be available and authorized by the governing body; such bonds may be issued pursuant to and secured under the terms of a trust agreement or indenture with a corporate trustee and the ordinance authorizing such bonds or trust agreement or indenture pertaining thereto may contain provisions for the establishment of a reserve fund, and such other funds or accounts as are determined by the governing body to be appropriate to be held by the governing body or the trustee. The proceeds of any bonds may be applied to the payment of the costs of any improvements, including expenses associated with the issuance and sale of the bonds and any costs for planning and designing the improvements or planning or arranging for the financing and any engineering, architectural, surveying, testing, or similar costs or expenses necessary or appropriate for the planning, designing, and construction or implementation of any plan in connection with the improvements.

Section 5-37-40.         (A)     If the governing body finds that:

(1)     improvements would be beneficial within a designated improvement district;

(2)     the improvements would preserve or increase property values within the district;

(3)     in the absence of the improvements, property values within the area would be likely to depreciate, or that the proposed improvements would be likely to encourage development in the improvement district;

(4)     the general welfare and tax base of the city would be maintained or likely improved by creation of an improvement district in the city; and

(5)     it would be fair and equitable to finance all or part of the cost of the improvements by an assessment upon the real property within the district, the governing body may establish the area as an improvement district and implement and finance, in whole or in part, an improvement plan in the district in accordance with the provisions of this chapter. However, owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district.     (B)     If an improvement district is located in a redevelopment project area created under Title 31, Chapter 6, the improvement district being created under the provisions of this chapter must be considered to satisfy items (1) through (5) of subsection (A). The ordinance creating an improvement district may be adopted by a majority of council after a public hearing at which the plan is presented, including the proposed basis and amount of assessment, or upon written petition signed by a majority in number of the owners of real property within the district which is not exempt from ad valorem taxation as provided by law. However, owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district.

Section 5-37-45.         The governing body may include within an improvement district an area within the municipality in which the proposed improvements have been constructed or are under construction at the time of the establishment of the improvement district. Before the commencement of the construction of these improvements, a written agreement with the owner of the area to be improved is entered into by the municipality authorizing the construction of the improvements in anticipation of the inclusion of the area which is improved in the improvement district upon such terms and conditions as the governing body agrees, including the reimbursement, as a cost of constructing improvements under this chapter, of any monies expended for the construction before and subsequent to the establishment of the improvement district. Any agreement providing for the construction of the improvements before the establishment of the improvement district must be authorized by an ordinance of the governing body, notice of which must be given by publication in a newspaper of general circulation within the municipality, appearing at least seven days before the final adoption of the ordinance. Any agreements entered into in accordance with the foregoing conditions before the effective date of this section are ratified and confirmed and the area improved declared eligible for inclusion in the improvement district as proposed in the agreement.

Section 5-37-50.         The governing body shall, by resolution duly adopted, describe the improvement district and the improvement plan to be effected therein, including any property within the improvement district to be acquired and improved, the projected time schedule for the accomplishment of the improvement plan, the estimated cost thereof and the amount of such cost to be derived from assessments, bonds, or other general funds, together with the proposed basis and rates of any assessments to be imposed within the improvement district. However, owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district. Such resolution shall also establish the time and place of a public hearing to be held within the municipality not sooner than twenty days nor more than forty days following the adoption of such resolution at which any interested person may attend and be heard either in person or by attorney on any matter in connection therewith.

Section 5-37-60.         A resolution providing for an improvement district, when adopted, shall be published once a week for two successive weeks in a newspaper of general circulation within the incorporated municipality and the final publication shall be at least ten days prior to the date of the scheduled public hearing. At the public hearing and at any adjournment thereof, all interested persons may be heard either in person or by attorney.

Section 5-37-70.         The governing body may provide by the resolution for the payment of the cost of the improvements and facilities to be constructed within the improvement district by assessments on the property therein as defined in Section 5-37-20, or by the issuance of special district bonds, or by general obligation bonds of the municipality, or from general municipal revenues from any source not restricted from such use by law, or from any combination of such financing sources as may be provided in the improvement plan.

Section 5-37-80.         The financing of improvements by assessments, bonds, or other revenues, and the proportions thereof, shall be in the discretion of the governing body; and the rates of assessments upon property owners within the improvement district need not be uniform but may vary in proportion to improvements made immediately adjacent to or abutting upon the property of each owner therein, as well as other bases as provided in Section 5-37-20.

Section 5-37-90.         The improvements as defined in Section 5-37-20 are to be or become the property of the municipality, State, or other public entity and may at any time be removed, altered, changed, or added to, as the governing body may in its discretion determine; provided, that during the continuance or maintenance of the improvements, the special assessments on property therein may be utilized for the preservation, operation, and maintenance of the improvements and facilities provided in the improvement plan, and for the management and operation of the improvement district as provided in the improvement plan, and for payment of indebtedness incurred therefor.

Section 5-37-100.     Not sooner than ten days nor more than one hundred twenty days following the conclusion of the public hearing provided in Section 5-37-50, the governing body may, by ordinance, provide for the creation of the improvement district as originally proposed or with such changes and modifications therein as the governing body may determine, and provide for the financing thereof by assessment, bonds, or other revenues as herein provided. However, owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district. Such ordinance shall not become effective until at least seven days after it has been published in a newspaper of general circulation in the municipality. Such ordinance may incorporate by reference plats and engineering reports and other data on file in the offices of the municipality; provided, that the place of filing and reasonable hours for inspection are made available to all interested persons.

Section 5-37-110.     In the event all or any part of improvements and facilities within the district are to be financed by assessments on property therein, the governing body shall prepare an assessment roll in which there shall be entered the names of the persons whose properties are to be assessed and the amount assessed against their respective properties with a brief description of the lots or parcels of land assessed. Immediately after such assessment roll has been completed the governing body shall cause one copy thereof to be deposited in the offices of the municipality for inspection by interested parties, and shall cause to be published at least once in a newspaper of general circulation within the municipality a notice of completion of the assessment roll setting forth a description in general terms of the improvements and providing at least ten days' notice of the time fixed for hearing of objections in respect to such assessments. The time for hearing such objections shall be at least thirty days, and hearings may be conducted by one or more members of the governing body of the municipality, but the final decision on each such objection shall be made by vote of the whole governing body at a public session thereof.

Section 5-37-120.     As soon as practicable after the completion of the assessment roll and prior to the publication of the notice provided in Section 5-37-110, the governing body shall mail by registered or certified mail, return receipt requested, to the owner or owners of each lot or parcel of land against which an assessment is to be levied, at the address appearing on the records of the city or county treasurer, a notice stating the nature of the improvement, the total proposed cost thereof, the amount to be assessed against the particular property and the basis upon which the assessment is made, together with the terms and conditions upon which the assessment may be paid. The notice shall contain a brief description of the particular property involved, together with a statement that the amount assessed shall constitute a lien against the property superior to all other liens except property taxes. The notice shall also state the time and place fixed for the hearing of objections in respect to the assessment. Any property owner who fails to file with the municipal council a written objection to the assessment against his property within the time provided for hearing such objections shall be deemed to have consented to such assessment, and the published and written notices prescribed in this chapter shall so state. If all of the owners of property upon which an assessment is to be levied consent in writing to the imposition of such assessment, the provisions of this section shall be deemed satisfied.

Section 5-37-130.     The governing body shall hear the objections as provided herein of all persons who have filed written notice of objection within the time prescribed and who may appear and make proof in relation thereto either in person or by their attorney. The governing body, at the sessions held to make final decisions on objections, may thereupon make such corrections in the assessment roll as it may deem proper and confirm the same, or set it aside and provide for a new assessment. Whenever the governing body shall confirm an assessment, either as originally prepared or as thereafter corrected, a copy thereof certified by the clerk of the municipality shall be filed in the office of the clerk of court of the county in which the municipality is situate, and from the time of such filing the assessment impressed in the assessment roll shall constitute and be a lien on the real property against which it is assessed superior to all other liens and encumbrances, except the lien for property taxes, and shall be annually assessed and collected with the property taxes thereon.

Section 5-37-140.     Upon the confirmation of an assessment, if any, the governing body shall mail a written notice to all persons who have filed written objections as hereinabove provided of the amount of the assessment finally confirmed. Such property owner may appeal such assessment only if he shall, within twenty days after the mailing of the notice to him confirming the assessment, give written notice to the governing body of his intent to appeal his assessment to the court of common pleas of the county in which the property is situate; but no such appeal shall delay or stay the construction of improvements or affect the validity of the assessments confirmed and not appealed. Appeals shall be heard and determined on the record, in the manner of appeals from administrative bodies in this State.

Section 5-37-150.     Nothing contained herein shall be construed to limit or restrict the powers of any incorporated municipality, but the authorizations herein contained shall be in addition to any such powers.

Section 5-37-160.     Any written petition or consent signed by a property owner prior to July 18, 1974, requesting or consenting to an assessment in an improvement district shall be effective and binding upon said property and property owner and all acts of any municipality taken under any other law shall be effective and binding upon all property owners in an improvement district.

Section 5-37-170.     No street in the State state highway system shall be included in a mall development without prior written approval of the South Carolina Highway Commission Department of Transportation.

Section 5-37-180.     No street which is located in front of the county courthouse and adjacent thereto shall be included in the mall development without prior written approval of the governing body having jurisdiction over such public property. Likewise, no street which shall in effect block the entrance to the courthouse square shall be included in the mall complex without prior written approval of same governing body."

SECTION     3.     Section 33-45-30 of the 1976 Code is amended to read:

"Section 33-45-30.     The members of a limited liability company organized pursuant to Chapter 43 or Chapter 44 of this title or five Five or more persons, residents of this State, may associate themselves as a cooperative association, society, company, union, or exchange for the purpose of conducting within this State any agricultural, dairy, mercantile, mining, mechanical, or manufacturing business on the cooperative plan."

SECTION     4.     This act takes effect upon approval by the Governor, except that the provisions contained in SECTION 2 which provide that owner-occupied residential property which is taxed under Section 12-43-220(c) must not be included within an improvement district unless the owner gives the governing body written permission to include the property within the improvement district apply only to improvement districts created after the effective date of this act.     /

Amend title to conform.

/s/Glenn F. McConnell             /s/J. Roland Smith
/s/Holly Cork                     /s/Richard M. "Rick" Quinn, Jr.
/s/Luke A. Rankin                 /s/Tracy R. Edge
On Part of the Senate.            On Part of the House.

The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

H. 3359 -- COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it insists upon its amendments to H. 3359:
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.

and asks for a Committee of Conference and has appointed Senators Land, Martin and Patterson of the Committee of Conference on the part of the Senate.
Very respectfully,
President

Whereupon, the Chair appointed Reps. DANTZLER, ROBINSON and KOON to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

H. 3218 -- CONFERENCE REPORT ADOPTED
CONFERENCE REPORT
H. 3218
The General Assembly, Columbia, S.C., June 23, 1999

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIPALITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 6/3/99--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/     SECTION     1.     Article 1, Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-120.     (A)     Except in accordance with a proper judicial order or as otherwise provided by law, it is unlawful for an officer or employee of a county or municipality, or the agent of such an officer or employee to divulge or make known in any manner the information provided by a taxpayer included in a report, tax return, or application required to be filed by the taxpayer with that county or municipality, pursuant to a county or municipal ordinance imposing a:

(1)     tax authorized under Article 5 or Article 7 of this chapter;

(2)     business license tax authorized under Section 4-9-30(12) or Section 5-7-30;

(3)     fee the measure of which is (a) gross proceeds of sales of goods or services, or (b) paid admissions to a place of amusement.

(B)     Nothing in this section prohibits the:

(1) publication of statistics classified to prevent the identification of particular reports, returns, or applications and the information on them; and

(2) inspection of reports, returns, or applications and the information included on them by an officer or employee of the county or municipality or an agent retained by an officer or employee in connection with audits of the taxpayer, appeals by the taxpayer, and collection efforts in connection with the tax or fee which is the subject of the return, report, or application.

(C)     A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. In addition, if the person convicted is an officer or employee of the county or municipality, the offender is dismissed from the office or position held and is disqualified from holding a public office in this State for five years following the conviction."

SECTION     2.     Section 12-54-240(A) of the 1976 Code, as last amended by Act 76 of 1995, is further amended to read:

"(A)     Except in accordance with proper judicial order or as otherwise provided by law, it is unlawful for a person to divulge or make known in any manner any particulars set forth or disclosed in any report or return required under Chapters 6, 8, 11, 13, 16, 20, or 36 or Article 17 of Chapter 21 of this title. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both. If the offender is an officer or an employee of the State, he must be dismissed from office and is disqualified from holding any public office in this State for a period of five years thereafter. If the offender is an officer or employee of a company retained by the State on an independent contract basis under subsection (B)(3) of this section or Section 12-4-350, the contract is immediately terminated and the company is not eligible to contract with the State for this purpose for a period of five years thereafter."

SECTION     3.     This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Glenn F. McConnell             /s/Vida O. Miller
/s/Robert Ford                    John Graham Altman III
/s/Luke A. Rankin                 /s/J. Cordell Maddox
On Part of the Senate.              On Part of the House.

Rep. MILLER explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has requested and been granted Free Conference powers and appointed Senators McConnell, Cork and Rankin of the Committee of Free Conference on the part of the Senate on H. 3641:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
Very respectfully,
President
Received as information.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on H. 3641:
H. 3641 (Word version) -- Reps. Harrison, Seithel, Altman, Wilkins and Edge: A BILL TO AMEND CHAPTER 1, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENT, BY ADDING ARTICLE 9 SO AS TO PROVIDE FOR THE IMPOSITION OF A DEVELOPMENT IMPACT FEE BY A COUNTY OR MUNICIPALITY BY ORDINANCE; TO PROVIDE FOR AN ADVISORY COMMITTEE FOR RECOMMENDING, AND PROCEDURES FOR ADOPTING, LAND USE ASSUMPTIONS, A CAPITAL IMPROVEMENTS PLAN, AND IMPACT FEES; TO PROVIDE FOR COMPUTATION OF THE PROPORTIONATE SHARE OF COSTS OF NEW PUBLIC FACILITIES NEEDED TO SERVE NEW GROWTH AND DEVELOPMENT; AND TO LIMIT THE USES OF THE REVENUE COLLECTED FROM A DEVELOPMENT IMPACT FEE TO APPLICATION TOWARD THE INCREASED COST OF SERVING NEW GROWTH AND DEVELOPMENT.
Very respectfully,
President

Received as information.

H. 3641 -- ORDERED ENROLLED FOR RATIFICATION

The Report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act and that it be enrolled for Ratification.

MESSAGE FROM THE SENATE

The following was received.

Columbia, S.C., June 23, 1999
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it insists upon its amendments to H. 3218:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Very respectfully,
President

Received as information.

H. 3218 -- ORDERED ENROLLED FOR RATIFICATION

The Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act and that it be enrolled for Ratification.

H. 3002 -- FREE CONFERENCE POWERS REJECTED

Rep. HASKINS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Edge, Robinson, Emory, McCraw, W. McLeod and J. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

The yeas and nays were taken resulting as follows:

Yeas 76; Nays 34

Those who voted in the affirmative are:

Allison                Askins                 Bailey
Bales                  Barfield               Barrett
Bowers                 Breeland               Brown G.
Brown H.               Brown J.               Carnell
Cato                   Chellis                Clyburn
Cooper                 Cotty                  Dantzler
Davenport              Edge                   Emory
Govan                  Harrell                Harvin
Haskins                Hayes                  Hines J.
Hosey                  Howard                 Inabinett
Jennings               Keegan                 Kelley
Kennedy                Klauber                Knotts
Koon                   Lee                    Limehouse
Littlejohn             Lloyd                  Lourie
Mack                   Maddox                 Martin
McGee                  McLeod M.              Miller
Neal J.M.              Neilson                Ott
Parks                  Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Rutherford             Sandifer
Scott                  Seithel                Sharpe
Smith D.               Stuart                 Taylor
Townsend               Tripp                  Trotter
Walker                 Webb                   Whatley
Wilder                 Wilkes                 Wilkins
Witherspoon

Total--76

Those who voted in the negative are:

Beck                   Brown T.               Campsen
Canty                  Delleney               Easterday
Fleming                Frye                   Gamble
Gilham                 Gourdine               Hamilton
Harris                 Hawkins                Hinson
Kirsh                  Law                    Leach
Loftis                 Lucas                  McCraw
McLeod W.              Meacham                Moody-Lawrence
Neal                   Phillips               Pinckney
Sheheen                Simrill                Smith F.
Smith R.               Stille                 Vaughn
Young-Brickell

Total--34

So, Free Conference Powers were rejected.

LEAVE OF ABSENCE

The SPEAKER granted Rep. D. SMITH a leave of absence for the remainder of the day.

H. 3002 -- FREE CONFERENCE POWERS REJECTED

Rep. HASKINS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Edge, Robinson, Emory, McCraw, W. McLeod and J. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

The yeas and nays were taken resulting as follows:

Yeas 81; Nays 28

Those who voted in the affirmative are:

Allen                  Allison                Askins
Bailey                 Bales                  Barfield
Barrett                Bowers                 Breeland
Brown G.               Brown H.               Brown J.
Brown T.               Carnell                Cato
Chellis                Clyburn                Cooper
Cotty                  Dantzler               Davenport
Edge                   Emory                  Gourdine
Govan                  Harrell                Harvin
Haskins                Hayes                  Hines J.
Hinson                 Hosey                  Howard
Inabinett              Jennings               Keegan
Kelley                 Kennedy                Klauber
Knotts                 Law                    Lee
Limehouse              Littlejohn             Lloyd
Lourie                 Mack                   Maddox
Martin                 McGee                  McLeod M.
Meacham                Miller                 Moody-Lawrence
Neal J.M.              Neilson                Ott
Parks                  Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Rutherford             Sandifer
Scott                  Seithel                Stuart
Taylor                 Townsend               Tripp
Trotter                Walker                 Webb
Whatley                Whipper                Wilder
Wilkes                 Wilkins                Young-Brickell

Total--81

Those who voted in the negative are:

Beck                   Campsen                Delleney
Easterday              Fleming                Frye
Gamble                 Gilham                 Hamilton
Harris                 Hawkins                Kirsh
Koon                   Leach                  Loftis
Lucas                  McCraw                 McLeod W.
Neal                   Phillips               Pinckney
Sharpe                 Sheheen                Simrill
Smith F.               Smith R.               Stille
Vaughn

Total--28

So, Free Conference Powers were rejected.

H. 3359 -- CONFERENCE REPORT ADOPTED
CONFERENCE REPORT
H. 3359
The General Assembly, Columbia, S.C., June 23, 1999

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3359 (Word version) -- Reps. Dantzler, Bailey, R. Smith, Hinson, Rodgers, Witherspoon, Chellis, McKay, McGee, Law, Simrill, Rhoad, Littlejohn and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-224 SO AS TO PROVIDE THAT A MOTOR HOME ON WHICH THE INTEREST PORTION OF INDEBTEDNESS IS DEDUCTIBLE PURSUANT TO THE INTERNAL REVENUE CODE AS AN INTEREST EXPENSE ON A QUALIFIED PRIMARY OR SECOND RESIDENCE IS ALSO A PRIMARY OR SECOND RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAXATION IN THIS STATE AND IS CONSIDERED REAL PROPERTY RATHER THAN PERSONAL PROPERTY FOR PROPERTY TAX PURPOSES.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

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

/     SECTION     1.     The 1976 Code is amended by adding:

"Section 12-37-224.     A motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes."

SECTION     2.     Chapter 21 of Title 50 of the 1976 Code is amended by adding:

"Section 50-21-385.     Houseboats used for habitation may be indefinitely moored at a private dock as long as the houseboat has a waste-holding tank. Waste pump-out must be done at an approved pump-out facility. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not less than five hundred dollars or imprisonment for thirty days, or both."

SECTION     3.     A.     Section 2-7-76 of the 1976 Code, as last amended by Section 115, Part II, Act 497 of 1994, is further amended to read:

"Section 2-7-76.         (A)     Whenever The chairman of the legislative committee to which a bill or resolution was referred shall direct the Budget Division or the Economic Research Section of the Budget and Control Board, as appropriate, to prepare and affix to it a statement of the estimated fiscal or revenue impact and cost to the counties and municipalities of the proposed legislation before the legislation is reported out of that committee if a bill or resolution:

(1)     requires a county or municipality to expend funds allocated to the county or municipality under pursuant to Chapter 27 of Title 6, or whenever a bill or resolution;

(2)     is introduced in the General Assembly to require the expenditure of funds by a county or municipality, or whenever a bill or resolution;

(3)     requires the use of county or municipal personnel, facilities, or equipment to implement a general law or regulations promulgated pursuant to a general law,; or whenever a bill

(4)     relates to taxes imposed by political subdivisions, the chairman of the legislative committee to which the bill or resolution was referred shall direct the Budget Division or the Department of Revenue, as appropriate, to prepare and affix to it a statement of the estimated fiscal or revenue impact and cost to the counties and municipalities of the proposed legislation prior to the legislation being reported out of that committee.

(B)     A revised estimated fiscal or revenue impact and cost statement must be prepared at the direction of the presiding officer of the House of Representatives or the Senate by the Budget Division or Department of Revenue prior to Economic Research Section of the Budget and Control Board before third reading of the bill or resolution, if there is a significant amendment to the bill or resolution.

(C)     For purposes of this section, political subdivision means a county, municipality, school district, special purpose district, public service district, or consolidated political subdivision."

B.         Section 12-6-40(A) of the 1976 Code, as last amended by Act 268 of 1998, is further amended to read:

"(A)     'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1997 1998, and includes the effective date provisions contained therein."

C.         Section 12-6-1120(8) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(8)     Each partner in the Palmetto Seed Capital Fund Limited Partnership (Fund) established under pursuant to Section 41-44-60 shall exclude from South Carolina gross income, seventy-five percent of the partner's proportionate share of income that the fund derives from a South Carolina business which is either:

( i)     established and operated in a less least developed county as defined in Section 12-6-3360,; or

(ii)     invested in agriculture, aquaculture, or a related business or in a business created by a socially or economically disadvantaged individual as defined in 13 Code of Federal Regulations, Sections 124.105(A) and 124.106 (1987)."

D.         Section 12-6-3410(D)(2) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(2)     The establishment, expansion, or addition of a corporate headquarters or research and development facility must result in:

(a)     the creation of at least seventy-five new full-time jobs performing either:

( i)     headquarters related functions and services; or

(ii)     research and development related functions and services_which.

The jobs must have an average cash compensation level of more than one and one-half times the per capita income of this State at the time the jobs are filled based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled; and

(b)     an average South Carolina employee cash compensation level for all employees in this State of more than twice the per capita income in the State at the time the newly created jobs are filled based on the most recent per capita income data available as of the end of the taxpayer's taxable year in which the jobs are filled."

E.         Section 12-6-3465 of the 1976 Code, as added by Act 32 of 1995, is amended to read:

"Section 12-6-3465.     A taxpayer who is constructing or operating a qualified recycling facility as defined in Section 12-7-1275 12-6-3460 shall be is entitled to credits in the amount of all funds collected as permitted in Section 12-10-80, which credits can be used to reduce the taxpayer's corporate income tax imposed by Section 12-7-230 12-6-530, sales or use tax imposed by the State or any political subdivision of the State, corporate license fees imposed by Section 12-19-70 12-20-50 or any tax similar to these taxes. Any unused credits may be carried forward to subsequent taxable years until such credits are exhausted."

F.         Section 12-16-20(5) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(5)     'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 1991 as described in Section 12-6-40(A)."

G.         Section 12-20-20(A) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(A)     Except for those corporations described in Section 12-20-110, every domestic corporation, every foreign corporation qualified to do business in this State, and any other corporation required by Section 12-6-530 12-6-4910 to file income tax returns shall file an annual report with the department."

H.         The third paragraph of Section 12-36-510(C) of the 1976 Code, as last amended by Act 383 of 1994, is further amended to read:

"'Special event' means a promotional show, trade show, fair, festival, or carnival for which an admissions fee is required for entering the event or, in the case of a festival, if the festival is listed as a special event in the calendar of events provided by the South Carolina Department of Parks, Recreation and Tourism. In addition, the event must be operated for a period of less than twelve consecutive days."

I.     Section 12-37-251(F) of the 1976 Code, as last amended by Section 29C, Part II, Act 419 of 1998, is further amended to read:

"(F)     The exemption allowed by this section is conditional on full funding of the Education Finance Act and on an appropriation by the General Assembly each year reimbursing school districts an amount equal to the Department of Revenue's Economic Research Section of the Budget and Control Board estimate of total school tax revenue loss resulting from the exemption in the next fiscal year."

J.     The second paragraph of Section 12-54-85(D) of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"Notwithstanding any restrictions on filing a claim for refund provided in subsection (F) below, a corporation may file a claim for refund resulting from an overpayment due to changes in taxable income made by the Internal Revenue Service within thirty ninety days from the date the Internal Revenue Service changes the taxable income."

K.     1.     Section 12-56-20(1) of the 1976 Code, as last amended by Section 55A, Part II, Act 419 of 1998, is further amended to read:

"(1)     'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members, or other political subdivisions, or other claimant agencies as defined in this item. A political subdivision who submits a claim through an association is a claimant agency for the purpose of the notice and appeal provisions and other requirements of this chapter."

2.     Section 12-56-60 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"Section 12-56-60.         (A)     A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and supply information the department determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off not less than thirty days before the claimant agency's request to the department. This notice must be given in person, left at the dwelling or usual place of business of the debtor, or sent by certified or registered mail to the debtor's last known address no less than thirty days before the claimant agency's request to the department. The notice shall include a statement which sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could prevent setoff. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the department and the furnishing of identifying information must occur on or before a date specified by the department in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified above, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the department.

(B)     Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the department shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the department shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The department may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. No apportionment is required in cases of refunds resulting from filing joint returns. A person has no property right or property interest in a refund until all amounts due the State and claimant agencies are paid. The department shall consider any certified delinquent debt and debtor list provided by a claimant agency as correct and the department is not liable for a wrongful or improper setoff. Reviews of refund setoffs are with the claimant agency. If, after appropriate review the claimant agency determines that the setoff amount is excessive, it shall refund the appropriate amount to the taxpayer. If, after appropriate review, the claimant agency determines that it is entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If a refund has been retained in error, the claimant agency shall pay interest to the taxpayer calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final except that no interest accrues when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services."

3.     Chapter 56 of Title 12 of the 1976 Code is amended by adding:

"Section 12-56-62.     The notice of intention to set off must be given by mailing the notice, with postage prepaid, addressed to the debtor at the address provided to the claimant agency when the debt was incurred or at the debtor's last known address. The giving of the notice by mail is complete upon the expiration of thirty days after deposit of the notice in the mail. A certification by the claimant agency that the notice has been sent as required by this section is presumptive proof that the requirements as to notice are met, even if the notice actually has not been received by the debtor. The notice must include a statement of appeal procedures available to the debtor, substantially as follows:

'According to our records, you owe the (claimant agency) a debt in the amount of (amount of the debt) for (type of debt) You are hereby notified of the (claimant agency's) intention to submit this debt to the South Carolina Department of Revenue to be set off against your individual income tax refund. Pursuant to the Setoff Debt Collection Act, this amount, plus all costs, will be deducted from your South Carolina individual income tax refund unless you file a written protest within thirty days of the date of this notice. If you file a joint return with your spouse, this amount will be deducted from the total joint refund without regard to which spouse incurred the debt or actually withheld the taxes. The protest must contain the following information:

(1)     your name;

(2)     your address;

(3)     your social security number;

(4)     the type of debt in dispute; and

(5)     a detailed statement of all the reasons you disagree or dispute the debt.

The original written protest must be mailed to the (claimant agency) at the following address:

(address of the entity requesting the setoff) .'

Section 12-56-63.     (A)     A debtor who protests the debt shall file a written protest with the claimant agency at the address provided in the claimant agency's notification of intention to set off. The protest must be filed within thirty days of the date of the notice of intention to set off and must contain the debtor's name, address, and social security number, identify the type of debt in dispute, and give a detailed statement of all the reasons which support the protest. The requirements of this section are jurisdictional.

(B)     An association defined as a political subdivision in Section 12-56-20(1) may contract with another political subdivision for the processing of debts to be submitted to the department. These services may be funded through an administrative fee. The association is exempt from the notice and appeal procedures of this chapter. The entity responsible for the notice and hearing requirements of this chapter is the political subdivision which has submitted its claim through the association or governmental entity which has submitted it directly to the department.

Section 12-56-65.     (A)     Before submitting a debt to the department, the claimant agency shall appoint a hearing officer to hear a protest of a debtor. This hearing officer is vested with the authority to decide a protest in favor of either the debtor or the claimant agency. The claimant agency shall certify to the department, on a form prescribed by the department, that a hearing officer has been appointed and shall inform the department of the name, address, and telephone number of the hearing officer. If this hearing officer is unable to serve at any time, the claimant agency shall appoint another hearing officer.

(B)     Upon receipt of a notice of protest, the claimant agency shall notify the department that a protest has been received and shall hold an informal hearing at which the debtor may present evidence, documents, and testimony to dispute the debt. The claimant agency shall notify the debtor of the date, time, and location of the informal hearing. At the conclusion of the informal hearing, the hearing officer shall render his determination. Upon receipt of a sworn certification from the hearing officer that he held an informal hearing and ruled in favor of the claimant agency, the department may proceed with the setoff, regardless of a subsequent appeal by the debtor.

(C)     A debtor may seek relief from the hearing officer's determination by requesting, within thirty days of the determination, a contested case hearing before the Administrative Law Judge Division. A request for a hearing before the Administrative Law Judge Division must be made in accordance with its rules.

(D)     If a setoff is made and the determination of the hearing officer in favor of the claimant agency is later reversed, the claimant agency shall refund the appropriate amount to the taxpayer. If the claimant agency is found to be entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the department. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If the claimant agency is found to be entitled to a portion of the amount set off, it is not required to refund the administrative fee retained by the department.

(E)     If a refund is retained in error, the claimant agency shall pay to the taxpayer interest calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final, except that interest does not accrue when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services.

(F)     If the claimant agency determines that money has been erroneously or illegally set off, the claimant agency, in its discretion, may refund the amount of the setoff, even if the debtor does not file a protest.

(G)     A setoff may not be contested more than one year after the date the setoff was made. The date of the setoff must be conclusively determined by the department. This provision must be construed as a statute of repose and not as a statute of limitation.

Section 12-56-67.     This section does not create a right to jury trial where one does not already exist. Where a debtor otherwise is entitled to have a jury determine the issue of indebtedness, that right is preserved specifically. If a right to a jury trial already exists and the debtor wishes to exercise that right, the debtor is not required to request a contested case hearing before the Administrative Law Judge Division but instead must file a summons and complaint in the Court of Common Pleas and serve the pleadings on the claimant agency within thirty days from the date of the hearing officer's determination. The summons and complaint must name the claimant agency as a defendant and the allegations of the complaint must contest the debt and any potential setoff.

Section 12-56-120.         The department is exempt from the notice and appeal procedures of this chapter. The appeal procedures for the setoff of any debt owed to the department is governed by the provisions of Chapter 60 of Title 12 which provides the sole and exclusive remedy for these procedures."

4.         Section 12-56-110 of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"Section 12-56-110.     The department shall may promulgate regulations and prescribe forms and procedures necessary to implement this chapter."

5.         All liabilities incurred and rights accrued before the effective date of this section are unaffected by the provisions of this section.

6.         Upon approval by the Governor, this section applies to a liability incurred or a right accrued on and after that date.

SECTION     4.     A.         Article 1, Chapter 54, Title 12 of the 1976 Code is amended by adding:

"Section 12-54-43.     (A)     Except as otherwise provided, the civil penalties imposed by this penalty section apply to every revenue or tax law of the State that provides for the filing with the department of a return or statement of the tax or the amount taxable.

(B)     The penalties described in this section must be added to and become a part of and collected as the tax imposed by the revenue or tax laws of this State.

(C)(1)     In the case of failure to file a return on or before the date prescribed by law, determined with regard to any extension of time for filing, there must be added to the amount required to be shown as tax on the return, a penalty of five percent of the amount of the tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction of the month during which the failure continues, not exceeding twenty-five percent in the aggregate.

(2)     In case of a failure to file a return of tax within sixty days of the date prescribed for filing the return, determined with regard to any extension of time for filing, the addition to tax must not be less than the lesser of one hundred dollars or one hundred percent of the amount required to be shown as tax on the return, except in those cases in which the tax owed is one hundred dollars or less.

(3)     For the purpose of this subsection, the amount of tax required to be shown on the return must be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

(D)     In case of failure to pay the amount shown as tax on any return on or before the date prescribed by law, determined with regard to any extension of time for paying, there must be added to the tax due a penalty of one-half of one percent of the amount of the tax if the failure is for not more than one month, with an additional one-half of one percent for each additional month or fraction of the month, during which the failure continues, not exceeding twenty-five percent in the aggregate.

(E)     In case of failure to pay any amount of any tax required to be shown on a return which is not shown, including an assessment within ten days of the date of the notice and demand for payment, there must be added to the amount of tax stated in the notice and demand one-half of one percent of the amount of the tax if the failure is for not more than one month, with an additional one-half of one percent for each additional month or fraction of a month during which the failure continues, not exceeding twenty-five percent in the aggregate.

(F)(1)     If part of an underpayment of tax or part of a claim for refund of tax paid is due to negligence or disregard of regulations, there must be added to the tax an amount equal to the sum of five percent of the underpayment or claimed refund and an amount equal to fifty percent of the interest payable under Section 12-54-25.

(2)     A portion of an underpayment attributable to fraud with respect to which a penalty is imposed under subsection (G) must not be considered under this subsection.

(3)     For purposes of this subsection, 'negligence' includes a failure to make a reasonable attempt to comply with the provisions of this title, and 'disregard' includes careless, reckless, or intentional disregard.

(G)(1)     If a part of an underpayment of tax required to be shown on a return is due to fraud, there must be added to the tax an amount equal to the sum of seventy-five percent of the portion of the underpayment which is attributable to fraud and an amount equal to fifty percent of the interest payable under Section 12-54-25 with respect to that portion for the period beginning on the last day prescribed by law for payment of the underpayment, determined without regard to any extension, and ending on the date of the assessment of the tax or, if earlier, the date of the payment of the tax.

(2)     If the department establishes that a portion of an underpayment is attributable to fraud, the entire underpayment must be treated as attributable to fraud, except that portion of the underpayment which the taxpayer establishes is not attributable to fraud.

(3)     In case of a joint return, this subsection applies to a spouse only if some part of the underpayment is due to the fraud of the spouse.

(4)     If a penalty is assessed under this subsection for an underpayment of tax which is required to be shown on a return, a penalty relating to failure to file the return or pay tax may not be assessed with respect to the portion of the underpayment which is attributable to fraud.

(H)     A person who must obtain a license or purchase stamps for identification purposes, and who fails to obtain or display the license properly, or to affix the stamps properly, or to comply with statutory provisions, is subject to a penalty of not less than fifty dollars nor more than five hundred dollars for each failure. For failure to obtain or display a license as prescribed in Sections 12-21-2720 and 12-21-2730, the penalty is fifty dollars for each failure to comply.

(I)     A person:

(1)     who files what purports to be a return of the tax imposed by a provision of law administered by the department but which:

(a)     does not contain information on which the substantial correctness of the tax liability may be judged; or

(b)     contains information that on its face indicates the liability is substantially incorrect; and

(2)     whose conduct is due to:

(a)     a position which is frivolous; or

(b)     a desire, which appears on the purported return, to delay or impede the administration of state tax laws;

(3)     is liable to a penalty of five hundred dollars. This penalty is in addition to all other penalties provided by law.

(J)     Whenever it appears to an administrative law judge that proceedings before him have been instituted or maintained by the taxpayer primarily for delay or that the taxpayer's position in the proceedings is frivolous or groundless, damages in an amount not to exceed five thousand dollars must be awarded to the State in the administrative law judge's decision. These damages must be assessed at the same time as the deficiency, paid upon notice and demand from the department, and collected as a part of the tax.

Section 12-54-44.     (A)     Except as otherwise provided, the criminal penalties imposed by this section apply to every revenue or tax law of the State that provides for the filing with the department of a return or statement of the tax or the amount taxable.

(B)(1)     A person who wilfully attempts in any manner to evade or defeat a tax or property assessment imposed by a title administered by the department or the payment of that tax or property assessment, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.

(2)     A person required by a provision of law administered by the department and who wilfully fails to collect, truthfully account for, and pay over any tax imposed by a provision of law, in addition to other penalties provided by law, is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than five years, or both, together with the cost of prosecution.

(3)     A person required under any provision of law administered by the department and who wilfully fails to pay any estimated tax or tax, or who is required by any provision of law or by any regulation and who wilfully fails to make a return, keep records, or supply information, at the time or times required by law or regulation, in addition to other penalties provided by law, is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars, or imprisoned not more than one year, or both, together with the cost of prosecution.

(4)     A person required by law or regulation to furnish a statement who wilfully furnishes a false or fraudulent statement in the manner, at the time, and showing the information required by law or regulation, is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both.

(5)     A person required to supply information to his employer under Chapter 8 of Title 12 who wilfully supplies false or fraudulent information or who wilfully fails to supply information which would require an increase in the tax to be withheld under Chapter 8, Title 12 is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars, or imprisoned not more than one year, or both. Offenses in this item are triable in magistrate's court.

(6)(a)     A person is guilty of a felony and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than five years, or both, together with the cost of prosecution, if he:

( i)     wilfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or

(ii)     wilfully assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with a matter arising under those provisions of law administered by the department of a return, affidavit, claim, or other document which is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document.

(b)     A person convicted of a crime described in subitem (a)(ii) is prohibited from preparing or assisting in the preparation of a tax return required to be filed under any title administered by the department. A person violating this prohibition is guilty of a felony, and, upon conviction, must be fined ten thousand dollars and imprisoned for at least five years without probation, parole, or suspension of sentence.

(c)     A person who:

( i)     wilfully removes, deposits, or conceals, or is concerned in removing, depositing, or concealing goods or commodities for which a tax is or must be imposed, or property upon which levying is authorized pursuant to law, with intent to evade or defeat the assessment or collection of any tax imposed by this provision of law administered by the department is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than three years, or both, together with the cost of prosecution;

( ii)     in connection with the preparation of a tax return for another, the filing of a tax return, or the payment of a tax, receives money from the payment of any tax, receives money from the other person with the understanding that it is to be paid over to the department to discharge, in whole or in part, the other person's tax liability and wilfully fails to pay over the same to the department is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than three years, or both, for each offense together with the cost of prosecution; or

(iii)     wilfully delivers or discloses to the department any list, return, account, statement, or other document known by him to be fraudulent or to be false as to a material matter, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both.

(C)     A failure to deposit or pay taxes deducted and withheld pursuant to Article 5 of Chapter 8 subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars. The penalty imposed by this item applies to failure to comply with the provisions of Section 12-54-250.

(D)     A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."

B.     Section 4-12-30(F)(2)(a) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(a)     Replacement property does not have to serve the same function as the property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property which is being disposed of in the same property tax year it is replacing. More than one piece of replacement property can replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-12-20. Replacement property is entitled to the fee payment for the period of time remaining on the fee period for the property which it is replacing; provided, however, that where a single piece of property replaces two or more pieces of property, the fee period must be measured from the earliest of the dates on which the replaced pieces of property were placed in service."

C.         Section 4-29-67(F)(2)(a) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(a)     Replacement property does not have to serve the same function as the property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property which is being disposed of in the same property tax year it is replacing. More than one piece of replacement property can replace a single piece of fee property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-29-60. Replacement property is entitled to the fee payment for the period of time remaining on the twenty-year fee period for the property which it is replacing; provided, however, that where a single piece of property replaces two or more pieces of property, such fee period shall be measured from the earliest of the dates on which the replaced pieces of property were placed in service."

D.         Section 4-29-68(F) of the 1976 Code, as added by Act 4 of 1995, is amended to read:

"(F)     A county, municipality, or special purpose district that receives and retains revenues from a payment in lieu of taxes pursuant to Section 4-1-170, 4-12-30, 4-29-60, or 4-29-67, or Chapter 44, Title 12 in which these revenues are derived in whole or in part from a redevelopment project area established pursuant to Title 31, Chapter 6 shall allocate these revenues in accordance with the ordinance of the municipality adopted pursuant to Section 31-6-70 as if these revenues remained ad valorem taxes. All taxes fees collected in the redevelopment project area which are not subject to the ordinance of the municipality adopted pursuant to Section 31-6-70 become payments in lieu of taxes and the portion collected by the municipality may be pledged to secure special source revenue bonds issued by the municipality pursuant to Section 4-1-175 or this section."

E.         Section 11-1-10 of the 1976 Code is amended to read:

"Section 11-1-10.     It shall be is unlawful for any an officer of this State, or his agent, employee, or servant to collect from any a person any delinquent taxes, fine, or other money due the county or State without issuing to such that person an official receipt showing the number, date, name of person, amount collected, and for what purpose,. and such The officer, agent, employee, or servant shall keep a stub similar to the receipt which and he shall at the end of each month turn it over at the end of each month to the county treasurer of the county in which such the collections are made. The county treasurer shall check the amounts turned in to him by such against the stubs and issue a clearance card to such the officer, or his agent, employee, or servant showing all moneys to have been monies turned in according to the stub stubs. Any officer, agent, employee, or servant violating the provisions of this section shall be is guilty of a misdemeanor and, upon conviction, shall be must fined in an amount not exceeding more than one hundred dollars or imprisoned not exceeding more than thirty days for each and every offense. An officer or employee of the Department of Revenue may turn in only those documents and reports as required by rules adopted and regulations promulgated by the director of the department."

F.         Section 12-6-50(14) of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"(14)     Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for Section 6015, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910."

G.         Section 12-6-3360(B) and (K) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(B)     The department shall rank and designate the state's counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The counties are ranked using the last three years of available per capita income data from the most recent and the last thirty-six month period months or three years of available unemployment rate data, with equal weight given to unemployment rate and per capita income as follows:

(1)     The twelve counties with a combination of the highest unemployment rate and lowest per capita income are designated least developed counties.

(2)     The twelve counties with a combination of the next highest unemployment rate and next lowest per capita income are designated under developed counties.

(3)     The eleven counties with a combination of the next highest unemployment rate and the next lowest per capita income are designated moderately developed counties.

(4)     The eleven counties with a combination of the lowest unemployment rate and the highest per capita income are designated developed counties. The designation by the department is effective for corporate taxable years which begin after the date of designation.

(5)(a)     A county, any portion of which is located within twenty-five miles of the boundaries of an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), shall receive the benefits of the next increased credit designation for five years beginning with the year in which the military installation or federal facility became an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), with the additional requirement that the military installation must have reduced employment on the installation of at least three thousand employees.

(b)     For In addition to the designation in subitem (a), a county in which is located an applicable military installation or applicable federal facility meeting the requirements for the increased credit provided in subitem (a) of this item, the credit allowed is two tiers higher than the credit for which the county would otherwise qualify is located is allowed an additional increased credit designation for five years beginning with the year the installation or facility meets the requirements.

(c)     Notwithstanding the designations in Section 12-6-3360, Laurens, Cherokee, and Union Counties shall qualify for the next increased credit designation.

(d)     In a county where less than five percent of the work force is in manufacturing, the credit allowed is one tier higher than the credit for which the county would otherwise qualify.

(K)(1)     In addition to those credits allowed under subsection (C) of this section a corporation, partnership, or limited liability company that qualifies for a credit under this section as an S corporation, partnership, or limited liability company, entitles each shareholder of the S corporation, partner of the partnership, or member of the limited liability company to a nonrefundable credit against taxes imposed pursuant to Section 12-6-510. An S corporation, limited liability company taxed as a partnership, or partnership that qualifies for a credit under this section may pass through the credit earned to each shareholder of the S corporation, partner of the partnership, or member of the limited liability company. For purposes of this subsection, limited liability company means a limited liability company taxed as a partnership.

(2)(a)     The amount of the credit allowed a shareholder, partner, or owner of a limited liability company member by this subsection is equal to the shareholder's percentage of stock ownership, partner's interest in the partnership, or member's interest in the limited liability company for the taxable year multiplied by the amount of the credit the taxpayer would have been entitled to if it were taxed as a corporation earned by the entity. This nonrefundable credit is allowed against taxes due under Section 12-6-510 or 12-6-530 and may not exceed fifty percent of the shareholder's, partner's, or member's tax liability under Sections 12-6-510 or 12-6-530.

(b)     Notwithstanding subitem (a), the credit earned pursuant to this section by an S corporation owing corporate level income tax must be used first at the entity level. Only the remaining credit passes through to each shareholder.

(3)     A credit claimed under pursuant to this subsection but not used in a taxable year may be carried forward by each shareholder, partner, or member for fifteen years from the close of the tax year in which the credit is earned by the S corporation, partnership, or limited liability company. However, the credit established by this section taken in one tax year may not exceed fifty percent of the taxpayer's tax liability under Section 12-6-510. The entity earning the credit may not carry over credit that passes through to its shareholders, partners, or members."

H.         Section 12-6-3360(M)(13) of the 1976 Code, as last amended by Act 432 of 1998, is further amended to read:

"(13)     'Qualifying service-related facility' means:

(a)     an establishment engaged in an activity or activities listed under the Standard Industrial Classification (SIC) Code 80 according to the Federal Office of Management and Budget Standard Industrial Classification Manual, 1987 edition; or

(b)     a business, other than a business engaged in legal, accounting, or investment services or retail sales, which has a net increase of at least:

( i)     two hundred fifty jobs at a single location;

( ii)     one hundred twenty-five jobs at a single location and the jobs have an average cash compensation level of more than one and one-half times the per capita income in the county where the jobs are located at the time the jobs are filled;

(iii)     seventy-five jobs at a single location and the jobs have an average cash compensation level of more than twice the per capita income in the county where the jobs are located at the time the jobs are filled; or

(iv)     thirty jobs at a single location and the jobs have an average cash compensation level of more than two and one-half times the per capita income in the county where the jobs are located at the time the jobs are filled.

The per capita income for each county is determined by using the most recent data available from the Board of Economic Advisors. A taxpayer shall use the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Determination of the required number of jobs is in accordance with the monthly average described in subsection (F)."

I.     Section 12-6-4910(1)(a) and (b) of the 1976 Code, as added by Act 75 of 1995, is amended to read:

"(a)     an individual not listed in (c) whose federal filing status is single, surviving spouse, or head of household who has gross income for the taxable year of at least the federal exemption amount plus the applicable basic standard deduction, plus any deduction the taxpayer qualifies for pursuant to Section 12-6-1170(B). If the individual is sixty-five or older, the standard deduction is increased as provided in Internal Revenue Code Section 63(c)(3) and 63(f)(1)(A).

(b)     an individual not listed in (c) who files a joint return and whose combined gross income for the taxable year, is more than the sum of twice the exemption amount plus the applicable basic standard deduction if the individual and spouse had the same household at the close of the taxable year, plus any deduction the taxpayer qualifies for pursuant to Section 12-6-1170(B). If the individual or spouse is sixty-five or older, the standard deduction is increased as provided in Internal Revenue Code Section 63(c)(3) and 63(f)(1)."

J.     Section 12-6-5060 of the 1976 Code, as added by Act 76 of 1995, is amended by adding at the end:

"(E)     For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

K.         Section 12-6-5065 of the 1976 Code, as added by Act 262 of 1996, is amended by adding at the end:

"(E)     For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

L.         Section 12-6-5070 of the 1976 Code, as added by Act 90 of 1995, is amended by adding at the end:

"(E)     For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

M.     Section 12-6-5080 of the 1976 Code, as added by Section 64A, Part II, Act 155 of 1997, is amended by adding at the end:

"(D)     For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

N.         Section 12-21-2550(B) of the 1976 Code, as last amended by Act 432 of 1998, is further amended to read:

"(B)     If a person fails to make a true and correct return or fails to file the return, the department shall make a return upon the information it is able to obtain an estimate of the tax liability from the best information available, and issue a proposed assessment for the taxes, including penalties and interest."

O.         Section 12-36-2120(33) of the 1976 Code, as added by Section 74A, Part II, Act 612 of 1990, is amended to read:

"(33)     electricity, natural gas, fuel oil, kerosene, LP gas, coal, or any other combustible heating material or substance used for residential purposes. Individual sales of kerosene or LP gas of twenty gallons or less by retailers are considered used for residential heating purposes;"

P.         Section 12-54-240(B) of the 1976 Code, as last amended by Act 155 of 1997, is further amended by adding at the end:

"(20)     submission of taxpayer names and home addresses to the director of the South Carolina Retirement System to effectuate the provisions of Section 9-1-1650 relating to the disposition of inactive accounts."

Q.         Section 12-56-20(1) of the 1976 Code, as last amended by Section 55A, Part II, Act 419 of 1998, is further amended to read:

"(1)     'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service, and the United States Department of Education. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other political subdivisions."

R.         Section 12-56-20(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(3)     'Debtor' means any individual a person having a delinquent debt or account with any a claimant agency which has not been adjusted, satisfied, or set aside by court order, or discharged in bankruptcy."

S.         Sections 12-6-5590, 12-54-35, and 12-54-40 of the 1976 Code are repealed.

T.         Section 12-4-320(6) of the 1976 Code, as added by Act 516 of 1994, is amended to read:

"(6)     if for damage caused by war, terrorist act, or natural disaster or service with the United States armed forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates or national guard in or near a hazard duty zone, extend the date for filing returns, payments of taxes, collection of taxes, and conducting audits, and waive interest and penalties."

U.         Section 12-60-470(C) of the 1976 Code, as added by Act 60 of 1995, is amended to read:

"(C)     Only the taxpayer legally liable for the tax may file a claim for refund or receive a refund, except that after the application of Section 12-60-490:

(1)     the assignment of a refund may be made, but only after the department has authorized the refund and issued an order for the refund to the State Treasurer's office; or

(2)     a person who acts as a collector and remitter of state taxes may claim a credit or refund of the tax collected, but only if the person establishes that he has paid the tax in question to the State, and

(1)(a)     repaid the tax to the person from whom he collected it; or

(2)(b)     obtained the written consent of the person from whom he collected the tax to the allowance of the credit or refund."

V.         Section 12-44-60 of the 1976 Code, as added by Act 149 of 1997, is amended to read:

"Section 12-44-60.     (A)     The fee agreement may provide that property which is placed in service as a replacement for economic development property may become economic development property. This replacement property is not required to serve the same function as the economic development property it is replacing. Replacement property is deemed to replace the oldest property subject to the fee, whether real or personal, which is disposed of in the same property tax year as the replacement property is placed in service. Replacement property qualifies as economic development property only to the extent of the original income tax basis of the economic development property which is being disposed of in the same property tax year. More than one piece of property can replace a single piece of property.

(B)     To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the economic development property which it is replacing, the excess amount is subject to annual payments calculated as if the exemption for economic development property were not allowed. Replacement property is entitled to the fee payment for the period of time remaining during the exemption period for the economic development property which it is replacing. Where a single piece of property replaces two or more pieces of economic development property, the time period remaining must be measured from the earliest of the dates on which the replaced pieces of economic development property were placed in service.

(C)     The new replacement property which qualifies for the fee provided in Section 12-44-50 is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original economic development property. The fee payment for replacement property must be based on Section 12-44-50(A)(3) if the sponsor originally used an alternative payment method."

W.     1.     Section 6-1-320(A) of the 1976 Code, as added by Act 138 of 1997, is amended to read:

"(A)         Notwithstanding Section 12-37-251(E), a local governing body may only increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the prior preceding tax year only to the extent of the increase in the consumer price index for the preceding fiscal calendar year. However, in the year in which a reassessment program is implemented, the rollback millage, as calculated pursuant to Section 12-37-251(E), must be used in lieu of the previous year's millage rate."

2.     This section is effective for property tax years beginning after 1998.

X.         The Department of Revenue may amend the 1999 Index of Taxpaying Ability, as defined in Section 59-20-20(3) for purposes of calculating the 1999 Index of Taxpaying Ability.

Y.         This section takes effect upon approval by the Governor; and subsections B, C, and E are effective for property tax years beginning after 1998, subsections A, H, I, J, K, L, M, N, and R are effective for taxable years after 1998, and subsection P is effective July 1, 1999.

SECTION     5.     A. Section 12-10-50, as last amended by Act 462 of 1996, is further amended to read:

"Section 12-10-50.     To qualify for the benefits provided in this chapter, a business must be located within this State and satisfy the following criteria:

(1)     it must be primarily engaged in a business of the type identified in Section 12-6-3360;

(2)     the business shall provide a benefits package to full-time employees which includes health care;

(3)     the business shall enter into a revitalization agreement which is approved by the council, except that no revitalization agreement is required for a qualifying business with respect to Section 12-10-80(D); and,

(4)     the council shall determine that the available negotiated incentives are appropriate for the project, and the council shall certify that the total benefits of the project exceed the costs to the public; and that the business otherwise fulfills the requirements of this chapter. No provision of this chapter must be construed to allow the council to negotiate a fee-in-lieu of property taxes agreement or approve job training or retraining."
B.         Section 12-10-60 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-60.     The council may enter into a revitalization agreement with each qualifying business with respect to the project. The terms and provisions of each revitalization agreement must be determined by negotiations between the council and the qualifying business. The decision to enter into a revitalization agreement with a qualifying business is solely within the discretion of the council and a qualifying business does not have a right of appeal from the council's decision. The revitalization agreement must set a date by which the qualifying business shall have completed the project. Within three months of the completion date, the qualifying business shall document the actual costs of the project in a manner acceptable to the council."

C.         Section 12-10-100(A) of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-100(A).     The council shall may establish criteria for the determination and selection of qualifying businesses_and the approval of revitalization agreements. These criteria must may include and may give greatest weight to the creditworthiness of the business, the number, type, and quality of new jobs to be provided by the project to residents of this State, and the economic viability of the business. The council may include in its criteria requirements relating to the capital costs of, and projected employment to be produced by, projects eligible for benefits under this chapter and requirements relating to the employment of previously unemployed or underemployed persons.

With respect to each business and project, the council shall request the materials and make the inquiries necessary to determine whether the business and its proposed project satisfy the council's announced criteria and to conduct an adequate cost/benefit analysis with respect to the proposed project and the incentives proposed to be granted by the council with respect to the project. After a review of the relevant materials and completion of its inquires and analysis, the council may by resolution of its members designate an applicant business as a qualifying business and authorize the undertaking of its project according to the revitalization agreement. The decision to enter into a revitalization agreement with a qualifying business is solely within the discretion of the council and a qualifying business does not have a right of appeal from the council's decision."
D.         Section 12-10-100 of the 1976 Code, as added by Act 25 of 1995, is amended by deleting subsection (E).

SECTION     6.     Section 4-35-150 of the 1976 Code, as added by Act 99 of 1993, is amended to read:

"Section 4-35-150.     The improvements as defined in Section 4-35-30 are the sole and unrestricted property of the county must be owned by the county, the State, or another public entity for the benefit of the citizens and residents of the improvement district or the entity owning the improvement, and may at any time may be removed, altered, changed, or added to, as the governing body of the owner may determine if except that during the continuance or maintenance of the improvements, the special assessments on property may be utilized for the preservation, operation, and maintenance of the improvements and facilities provided in the improvement plan, for the management and operation of the improvement district as provided in the improvement plan, and for payment of indebtedness incurred."

SECTION     7.     The provisions of Section 1 of this act take effect upon approval by the Governor and are applicable to property tax years beginning in 1999. The provisions of Section 2 take effect upon approval by the Governor.     /
Amend title to conform.

/s/Senator Larry A. Martin        /s/Representative Thomas Dantzler
Senator Kay Patterson             /s/Representative Alfred B. Robinson, Jr.
/s/Senator John C. Land III       /s/Representative Larry L. Koon
On Part of the Senate.            On Part of the House.

Rep. ROBINSON explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

LEAVE OF ABSENCE

The SPEAKER granted Rep. CARNELL a leave of absence for the remainder of the day.

H. 3002 -- FREE CONFERENCE POWERS REJECTED

Rep. HASKINS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Edge, Robinson, Emory, McCraw, W. McLeod and J. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

The yeas and nays were taken resulting as follows:

Yeas 78; Nays 31

Those who voted in the affirmative are:

Allen                  Allison                Askins
Bailey                 Bales                  Barfield
Barrett                Bowers                 Breeland
Brown G.               Brown H.               Brown J.
Brown T.               Cato                   Chellis
Clyburn                Cooper                 Cotty
Dantzler               Davenport              Edge
Emory                  Govan                  Harrell
Harvin                 Haskins                Hayes
Hines J.               Hinson                 Hosey
Howard                 Inabinett              Jennings
Keegan                 Kelley                 Kennedy
Klauber                Knotts                 Law
Lee                    Limehouse              Littlejohn
Lourie                 Mack                   Maddox
Martin                 McGee                  McLeod M.
Miller                 Moody-Lawrence         Neal J.M.
Neilson                Ott                    Parks
Quinn                  Rhoad                  Rice
Riser                  Rodgers                Rutherford
Sandifer               Scott                  Seithel
Sharpe                 Stuart                 Taylor
Townsend               Tripp                  Trotter
Walker                 Webb                   Whatley
Whipper                Wilder                 Wilkes
Wilkins                Witherspoon            Young-Brickell

Total--78

Those who voted in the negative are:

Beck                   Campsen                Canty
Delleney               Easterday              Fleming
Frye                   Gamble                 Gilham
Gourdine               Hamilton               Harris
Hawkins                Kirsh                  Koon
Leach                  Lloyd                  Loftis
Lucas                  McCraw                 McLeod W.
Meacham                Neal                   Phillips
Pinckney               Sheheen                Simrill
Smith F.               Smith R.               Stille
Vaughn

Total--31

So, Free Conference Powers were rejected.

H. 3276 -- FREE CONFERENCE POWERS GRANTED

Rep. CATO moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:

H. 3276 (Word version) -- Reps. Wilkins, Cato, Bailey, Barrett, Battle, G. Brown, H. Brown, Carnell, Cobb-Hunter, Easterday, Gamble, Harrell, Harrison, Jennings, Keegan, Kelley, Kirsh, Klauber, Mason, McGee, McKay, Quinn, Sandifer, Sharpe, D. Smith, R. Smith, Tripp, Young-Brickell, Leach, Whatley, Meacham, Law, Seithel, Woodrum, Trotter, Fleming, Chellis, Walker, Loftis, Altman, Riser, Stille, Rodgers, Rice, Bauer, Beck, Edge, Dantzler, Maddox, Cooper, Lanford, Martin, Hamilton, Campsen, Phillips, Lee, Harris, J. Smith, Gilham, Robinson and Simrill: A BILL TO AMEND CHAPTER 9 OF TITLE 58, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TELEPHONE, TELEGRAPH, AND EXPRESS COMPANIES, BY ADDING ARTICLE 20 SO AS TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH AMOUNTS MAY BE CHARGED BY MUNICIPALITIES TO TELECOMMUNICATIONS COMPANIES FOR THE USE OF THE PUBLIC RIGHTS-OF-WAY AND FOR BUSINESS LICENSE TAXES IN ORDER TO ENSURE THAT SUCH CHARGES ARE IMPOSED ON A COMPETITIVELY NEUTRAL AND NONDISCRIMINATORY BASIS, TO LIMIT OR RESTRICT THE IMPOSITION OF CERTAIN OTHER FEES AND TAXES ON TELECOMMUNICATIONS COMPANIES BY MUNICIPALITIES; AND TO PROVIDE FOR RELATED PROCEDURAL AND OTHER MATTERS.

The yeas and nays were taken resulting as follows:

Yeas 101; Nays 0

Those who voted in the affirmative are:

Allen                  Allison                Askins
Bailey                 Bales                  Barfield
Barrett                Beck                   Bowers
Breeland               Brown H.               Brown J.
Brown T.               Campsen                Cato
Chellis                Clyburn                Cotty
Dantzler               Davenport              Delleney
Easterday              Edge                   Emory
Fleming                Frye                   Gamble
Gilham                 Gourdine               Govan
Hamilton               Harrell                Harris
Harvin                 Haskins                Hawkins
Hayes                  Hines J.               Hinson
Hosey                  Howard                 Inabinett
Jennings               Keegan                 Kelley
Kennedy                Klauber                Koon
Law                    Leach                  Lee
Limehouse              Littlejohn             Loftis
Lourie                 Lucas                  Mack
Maddox                 Martin                 McCraw
McGee                  McLeod W.              Meacham
Miller                 Moody-Lawrence         Neal
Neal J.M.              Neilson                Ott
Parks                  Phillips               Pinckney
Quinn                  Rhoad                  Rice
Riser                  Robinson               Rodgers
Rutherford             Sandifer               Scott
Seithel                Sharpe                 Sheheen
Simrill                Smith F.               Smith R.
Stille                 Stuart                 Townsend
Trotter                Vaughn                 Walker
Webb                   Whatley                Whipper
Wilder                 Wilkes                 Wilkins
Witherspoon            Young-Brickell

Total--101

Those who voted in the negative are:

Total--0

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

H. 3276 -- FREE CONFERENCE REPORT ADOPTED
FREE CONFERENCE REPORT
H. 3276
The General Assembly, Columbia, S.C., June 23, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3276 (Word version) -- Reps. Wilkins, Cato, Bailey, Barrett, Battle, G. Brown, H. Brown, Carnell, Cobb-Hunter, Easterday, Gamble, Harrell, Harrison, Jennings, Keegan, Kelley, Kirsh, Klauber, Mason, McGee, McKay, Quinn, Sandifer, Sharpe, D. Smith, R. Smith, Tripp, Young-Brickell, Leach, Whatley, Meacham, Law, Seithel, Woodrum, Trotter, Fleming, Chellis, Walker, Loftis, Altman, Riser, Stille, Rodgers, Rice, Bauer, Beck, Edge, Dantzler, Maddox, Cooper, Lanford, Martin, Hamilton, Campsen, Phillips, Lee, Gilham, Robinson and Simrill: A BILL TO AMEND CHAPTER 9 OF TITLE 58, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TELEPHONE, TELEGRAPH, AND EXPRESS COMPANIES, BY ADDING ARTICLE 20 SO AS TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH AMOUNTS MAY BE CHARGED BY MUNICIPALITIES TO TELECOMMUNICATIONS COMPANIES FOR THE USE OF THE PUBLIC RIGHTS-OF-WAY AND FOR BUSINESS LICENSE TAXES IN ORDER TO ENSURE THAT SUCH CHARGES ARE IMPOSED ON A COMPETITIVELY NEUTRAL AND NONDISCRIMINATORY BASIS, TO LIMIT OR RESTRICT THE IMPOSITION OF CERTAIN OTHER FEES AND TAXES ON TELECOMMUNICATIONS COMPANIES BY MUNICIPALITIES; AND TO PROVIDE FOR RELATED PROCEDURAL AND OTHER MATTERS.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/     Whereas, Congress enacted the Telecommunications Act of 1996 to open local telephone markets to competition, and the telecommunications industry is in a state of transition; and

Whereas, in addition to new competitors in traditional local exchange telecommunications markets, a number of new technologies have developed and are developing at a rapid pace, expanding the array of telecommunications providers and services available to consumers; and

Whereas, since the passage of the Telecommunications Act of 1996, competition in telecommunications services and the number of competitors in the telecommunications industry in South Carolina has grown and continues to grow, as evidenced by the hundreds of new entrants into the industry. In South Carolina, over four hundred companies have been authorized to provide long distance service and over seventy companies have been authorized to provide local telephone service. South Carolina now has over one thousand authorized pay phone service providers and numerous digital and analog wireless and paging providers. Telephony may also now be provided over Internet protocol and cable modems; and

Whereas, the citizens of municipalities in South Carolina have long enjoyed the public benefit of dependable local exchange and long distance telecommunications service provided to them by telecommunications carriers that have constructed, operated, and maintained telecommunications facilities to serve those citizens, and that currently occupy the municipal rights-of-way in the State; and

Whereas, Congress has stated that nothing in Section 253 of the Telecommunications Act of 1996 affects the authority of the state or local government to manage the public rights-of-way or to require fair and reasonable compensation from telecommunications providers, on a competitively neutral and nondiscriminatory basis, for use of public rights-of-way on a nondiscriminatory basis, if the compensation required is disclosed by such government. The General Assembly finds that shifting of current taxation and fees from a franchise fee basis to the basis outlined in the attached article is necessary and appropriate due to the transition of the telecommunications industry and is fair and reasonable, and taxes and fees exceeding such amount, except upon extraordinary circumstances, would be unreasonable. Now, therefore

Be it enacted by the General Assembly of the State of South Carolina:

SECTION     1.     Chapter 9 of Title 58 of the 1976 Code is amended by adding:

"Article 20
Municipal Charges to Telecommunications Providers

Section 58-9-2200.         As used in this article:

(1)     'Telecommunications service' means the provision, transmission, conveyance, or routing for a consideration of voice, data, video, or any other information or signals of the purchaser's choosing to a point, or between or among points, specified by the purchaser, by or through any electronic, radio, or similar medium or method now in existence or hereafter devised. The term 'telecommunications service' includes, but is not limited to, local telephone services, toll telephone services, telegraph services, teletypewriter services, teleconferencing services, private line services, channel services, Internet protocol telephony, and mobile telecommunications services and to the extent not already provided herein, those services described in Standard Industrial Classification (SIC) 481 and North American Industry Classification System (NAICS) 5133, except satellite services exempted by law.

(2)     'Retail telecommunications service' includes telecommunications services as defined in item (1) of this section but shall not include:

(a)     telecommunications services which are used as a component part of a telecommunications service, are integrated into a telecommunications service, or are otherwise resold by another provider to the ultimate retail purchaser who originates or terminates the end-to-end communication including, but not limited to, the following:

(i)         carrier access charges;

(ii)     right of access charges;

(iii)     interconnection charges paid by the providers of mobile telecommunications services or other telecommunications services;

(iv)     charges paid by cable service providers for the transmission by another telecommunications provider of video or other programming;

(v)     charges for the sale of unbundled network elements;

(vi)     charges for the use of intercompany facilities; and

(vii)     charges for services provided by shared, not-for-profit public safety radio systems approved by the FCC;

(b)     information and data services including the storage of data or information for subsequent retrieval, the retrieval of data or information, or the processing, or reception and processing, of data or information intended to change its form or content;

(c)     cable services that are subject to franchise fees defined and regulated under 47 U.S.C. Section 542;

(d)     satellite television broadcast services.

(3)     'Telecommunications company' means a provider of one or more telecommunications services.

(4)     'Cable service' includes, but is not limited to, the provision of video programming or other programming service to purchasers, and the purchaser interaction, if any, required for the selection or use of the video programming or other programming service, regardless of whether the programming is transmitted over facilities owned or operated by the cable service provider or over facilities owned or operated by one or more other telecommunications service providers.

(5)     'Mobile telecommunications service' includes, but is not limited to, any one-way or two-way radio communication service carried on between mobile stations or receivers and land stations and by mobile stations communicating among themselves, through cellular telecommunications services, personal communications services, paging services, specialized mobile radio services, and any other form of mobile one-way or two-way communications service.

(6)     'Service address' means the location of the telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a retail customer. If this is not a defined location, as in the case of mobile phones, paging systems, maritime systems, and the like, 'service address' means the location of the retail customer's primary use of the telecommunications equipment or the billing address as provided by the customer to the service provider, provided that the billing address is within the licensed service area of the service provider.

(7)     'Bad debt' means any portion of a debt that is related to a sale of telecommunications services and which has become worthless or uncollectable, as determined under applicable federal income tax standards.

Section 58-9-2210.         Nothing in this article shall limit a municipality's authority to enter into and charge for franchise agreements with respect to cable services as governed by 47 U.S.C. Section 542.

Section 58-9-2220.         Notwithstanding any provision of law to the contrary:

(1)     A business license tax levied by a municipality upon retail telecommunications services for the years 1999 through the year 2003 shall not exceed three-tenths of one percent of the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality. The business license tax levied by a municipality upon retail telecommunications services for the year 2004 and every year thereafter shall not exceed the business license tax rate as established in Section 58-9-2220(2). For a business in operation for less than one year, the amount of business license tax authorized by this section must be computed based on a twelve-month projected income.

(2) (a) The maximum business license tax that may be levied by a municipality on the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality for a business license tax year beginning after 2003 is the lesser of seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services or the maximum business license tax rate as calculated by the Board of Economic Advisors pursuant to subsection (b). For a business in operation for less than one year, the amount of business license tax authorized by this section must be computed based on a twelve-month projected income.
(b) The Board of Economic Advisors from the appropriate municipal records shall determine actual total municipal revenues from business license taxes, franchise fees, and other fees contractually imposed on the sale of telecommunications services and received from telecommunications companies in 1998, and actual total revenues received by municipalities in 1999, 2000, 2001, 2002 and 2003 from such taxes and fees imposed on the gross income derived from the sale of retail telecommunications services. The board shall determine an annual average growth rate applicable to such revenues by averaging the annual growth rates applicable to these revenues for 1999-2000, 2000-2001, 2001-2002 and 2002-2003 and shall apply that average growth rate to the 1998 actual revenues compounded annually to derive an estimated 2004 total revenue. The tax rate to be calculated by the board is the fraction produced by dividing the 2004 estimated revenue as determined above by gross income in 2003 derived from the sale of retail telecommunications services in municipalities in this State.
(c) If the maximum business license tax rate that may be levied by a municipality on retail telecommunications services, as determined by the Board of Economic Advisors, is calculated or determined to exceed seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services a joint telecommunications study committee shall review the maximum business license tax calculation, as determined by the Board of Economic Advisors, and verify the maximum business license tax calculation. Upon verification of the maximum business license tax calculation, the joint telecommunications study committee must sponsor a joint resolution to allow a municipality to levy the maximum business license tax rate greater than seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunications services.
(d) The joint telecommunications study committee shall consist of six members of the General Assembly: three Senators appointed by the President Pro Tem of the Senate and three Representatives appointed by the Speaker of the House. The joint telecommunications study committee shall utilize the staff and resources of the Labor, Commerce and Industry Committee of the House of Representatives and the Judiciary Committee of the Senate. The joint telecommunications study committee is authorized to verify the maximum business license tax rate determined by the Board of Economic Advisors.

(3)     A business license tax levied by a municipality upon the retail telecommunications services provided by a telecommunications company must be levied in a competitively neutral and nondiscriminatory manner upon all providers of retail telecommunications services.

(4)     The measurement of the amounts derived from the retail sale of telecommunications services does not include:

(a)     an excise tax, sales tax, or similar tax, fee, or assessment levied by the United States or any state or local government including, but not limited to, emergency telephone surcharges, upon the purchase, sale, use, or consumption of a telecommunications service, which is permitted or required to be added to the purchase price of the service; and

(b)     bad debts.

(5)     A business license tax levied by a municipality upon a telecommunications company must be reported and remitted on an annual basis. The municipality may inspect the records of the telecommunications company as they relate to payments under this article.

(6)     The measurement of the amounts derived from the retail sale of mobile telecommunications services shall include only revenues from the fixed monthly recurring charge of customers whose service address is within the boundaries of the municipality.

Section 58-9-2230.         (A)     A municipality must manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose a fair and reasonable franchise or consent fee on a telecommunications company for use of the public streets and public property to provide telecommunications service unless the telecommunications company has an existing contractual, constitutional, statutory, or other right to construct or operate in the public streets and public property including, but not limited to, consent previously granted by a municipality. Any such fair and reasonable franchise or consent fee which may be imposed upon a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I -     1 -     1,000 -     $ 100.00

Tier II - 1,001 -     3,000 -     $ 200.00

Tier III - 3,001 -     5,000 -     $ 300.00

Tier IV - 5,001 -     10,000 -     $ 500.00

Tier V - 10,001 -     25,000 -     $ 750.00

Tier VI - Over 25,000 -     $1,000.00

(B)     A municipality must manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose an administrative fee upon a telecommunications company which is not subject to subsection (A) in this section that constructs or installs or has previously constructed or installed facilities in the public streets and public property to provide telecommunications service. Any such fee which may be imposed on a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I -     1 -     1,000 -     $ 100.00

Tier II - 1,001 -     3,000 -     $ 200.00

Tier III - 3,001 -     5,000 -     $ 300.00

Tier IV - 5,001 -     10,000 -     $ 500.00

Tier V - 10,001 -     25,000 -     $ 750.00

Tier VI - Over 25,000 -     $1,000.00

(C)     No municipality shall levy any tax, license, fee, or other assessment on, with respect to, or measured by the receipts from any telecommunications service, other than (a) the business license tax authorized by this article, and (b) franchise fees as defined and regulated under 47 U.S.C. Section 542; provided, however, that nothing herein shall restrict the right of any municipality to impose ad valorem taxes, service fees, sales taxes, or other taxes and fees lawfully imposed on other businesses within the municipalities.

(D)     A telecommunications company, including a mobile telecommunications company providing mobile telecommunications services, shall not be deemed to be using public streets or public property unless it has constructed or installed physical facilities in public streets or on public property, provided that the use of public streets or public property under lease, site license, or other similar contractual arrangement between a municipality and a telecommunications company shall not constitute the use of public streets or public property under this article. Without limiting the generality of the foregoing, a telecommunications company shall not be deemed to be using public streets or public property under this article solely because of its use of airwaves within a municipality. Should any telecommunications company, including a telecommunications company providing mobile telecommunications services, request of a municipality permission to construct or install physical facilities in public streets or on public property, such request shall be considered by such municipality in a manner that is competitively neutral and nondiscriminatory as amongst all telecommunications companies.

Section 58-9-2240.         A municipality may not use its authority over the public streets and public property as a basis for asserting or exercising regulatory control over telecommunications companies regarding matters within the jurisdiction of the Public Service Commission or the Federal Communications Commission including, but not limited to, the operations, systems, service quality, service territory, and prices of a telecommunications company. Nothing in this section shall be construed to limit the authority of a local governmental entity over a cable television company providing cable service as permitted by 47 U.S.C. Section 542.

Section 58-9-2250.         A telecommunications company, its successors or assigns, that is occupying the public streets and public property of a municipality on the effective date of this article with the consent of the municipality to use such public streets and public property shall not be required to obtain additional consent to continue the occupation of those public streets and public property.

Section 58-9-2260.         (A)     No municipality may enforce an ordinance or practice which is inconsistent or in conflict with the provisions of this article, except that:
(1)As of the time of the effective date of this article, any municipality which had entered into a franchise agreement or other contractual agreement with a telecommunications provider prior to December 31, 1997, may continue to collect fees under the franchise agreement or other contractual agreement through December 31, 2003, regardless of whether the franchise agreement or contractual agreement expires prior to December 31, 2003.
(2) Nothing in this article shall be interpreted to interfere with continuing obligations of any franchise or other contractual agreement in the event that the franchise agreement or other contractual agreement should expire after December 31, 2003.
(3) In the event that a municipality collects these fees under a franchise agreement or other contractual agreement herein, the fees shall be in lieu of fees or taxes that might otherwise be authorized by this article.
(4) Any municipality that, as of the effective date of this article, has in effect a business license tax ordinance, adopted prior to December 31, 1997, under which the municipality has been imposing and a telecommunications company has been paying a business license tax higher than that permitted under this article but less than five percent may continue to collect the tax under the ordinance through December 31, 2003, instead of the business license tax permitted under this article.
(5) Any municipality which, by ordinance adopted prior to December 31, 1997, has imposed a business license tax and/or franchise fee on telecommunications companies of five percent or higher of gross income derived from the sale of telecommunications services in the municipality, to which tax and/or fee a telecommunications company has objected, failed to accept, filed suit to oppose, failed to pay any license taxes or franchise fees required thereunder, or paid license taxes or franchise fees under protest, may enforce the ordinance and the ordinance shall continue in full force and effect until December 31, 2003, unless a court of competent jurisdiction declares the ordinance unlawful or invalid. In this event, the municipality is authorized until December 31, 2003, to collect business license taxes and/or franchise fees thereunder, not exceeding three percent of gross income derived from the sale of telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality instead of the business license tax permitted under this article; however, this proviso applies to any business license ordinance and/or telecommunications franchise ordinance notwithstanding that same is amended or has been amended subsequent to December 31, 1997.

(B)     The exception to this article described in subsection (A)(5) no longer applies after December 31, 2003.

Section 58-9-2270.         A telecommunications company may include the following statement or substantially similar language in any municipal customer's bill when that customer's municipality charges a business license tax to the telecommunications company under this chapter: 'Please note that included in this bill there may be a line-item charge for a business license tax assessed by your municipality'."

SECTION     2.     If a section, paragraph, provision, or portion of this article is held to be unconstitutional or invalid by a court of competent jurisdiction, this holding shall not affect the constitutionality or validity of the remaining portions of this article, and the General Assembly for this purpose hereby declares that the provisions of this article are severable from each other.

SECTION     3.     This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Thomas L. Moore                /s/Harry F. Cato
/s/C. Bradley Hutto               /s/William E. Sandifer
/s/Arthur Ravenel, Jr.            /s/Brenda Lee
On Part of the Senate.            On Part of the House.

Rep. CATO explained the Free Conference Report.

The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

HOUSE TO MEET AT 10:00 A.M. TOMORROW

Rep. TROTTER moved that when the House adjourns, it adjourn to meet at 10:00 A.M. tomorrow, which was agreed to.

Rep. SCOTT moved that the House do now adjourn, which was agreed to.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 3647 (Word version) -- Reps. Miller, Rodgers, Chellis, Keegan, Altman, Kennedy, Limehouse, Gilham, Barfield, Witherspoon, Dantzler, Bowers, Kelley, Bailey and Young-Brickell: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES, THE U.S. ARMY CORPS OF ENGINEERS, AND THE FEDERAL EMERGENCY MANAGEMENT AGENCY TO REVISIT THE CURRENT REGULATIONS TO ALLOW FOR THE REINSTATEMENT OF PREVIOUSLY APPROVED EMERGENCY SHELTERS IN THE COASTAL COUNTIES AND TO APPROVE SHELTERS RECOMMENDED BY LOCAL CITY AND COUNTY GOVERNMENTS OF GEORGETOWN, HORRY, CHARLESTON, BEAUFORT, AND COLLETON.

H. 4246 (Word version) -- Reps. Kennedy and Harvin: A CONCURRENT RESOLUTION CONGRATULATING WILLIAMSBURG TECHNICAL COLLEGE UPON ITS THIRTIETH ANNIVERSARY AND COMMENDING DR. JAMES C. WILLIAMSON, PRESIDENT, AND THE BOARD OF TRUSTEES FOR THE COLLEGE'S MANY SIGNIFICANT CONTRIBUTIONS TO THE PEOPLE OF WILLIAMSBURG COUNTY AND THE STATE OF SOUTH CAROLINA.

H. 4247 (Word version) -- Reps. Hawkins and Littlejohn: A CONCURRENT RESOLUTION TO RECOGNIZE MR. GEORGE COBB OF SPARTANBURG COUNTY FOR HIS DEDICATED PUBLIC SERVICE AND OUTSTANDING LEADERSHIP TO SPARTANBURG COUNTY AND THE STATE OF SOUTH CAROLINA.

H. 4261 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION COMMENDING THE REVEREND DR. DOROTHY L. PEARSON OF RICHLAND COUNTY ON HER FORTY-ONE YEARS AS PASTOR OF MOUNT OLIVE BAPTIST CHURCH AND FOR HER MANY YEARS OF SPREADING THE GOSPEL THROUGHOUT THIS NATION.

ADJOURNMENT

At 5:40 P.M. the House in accordance with the motion of Rep. RICE adjourned in memory of former Representative James B. Morrison of Georgetown, to meet at 10:00 A.M. tomorrow.

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