South Carolina General Assembly
116th Session, 2005-2006
Journal of the House of Representatives


Printed Page 731 . . . . . Wednesday, February 8, 2006

Wednesday, February 8, 2006
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 a.m.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr. as follows:

Our thought for today is from Psalm 138:7: "Though I walk in the midst of trouble, you preserve my life."
Let us pray. Heavenly Father, we thank You for every opportunity You place before us. Grant us the gifts of certainty and sincerity. Enable us to separate trimmings from truth. Enable us to use our talents for service to the people of South Carolina. Let our conversations and debates be always full of grace, seasoned with salt, so we may know how to answer everyone. Fill us with wisdom and courage of convictions and the integrity to use power for the good of all. Provide for each one every needful thing. Guide our Nation, our President, our State, our Governor and our leaders with Your special care. Bless and keep our defenders of freedom in Your safe hands. Hear our prayer, O Lord. 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. HINSON moved that when the House adjourns, it adjourn in memory of Councilwoman Judy Mims, which was agreed to.

SILENT PRAYER

The House stood in silent prayer for Representative Karl Allen and his family in the death of his brother.


Printed Page 732 . . . . . Wednesday, February 8, 2006

REPORTS OF STANDING COMMITTEES

Rep. LEACH, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report on:

H. 4585 (Word version) -- Reps. Simrill, Bowers, Kennedy, Duncan, Bannister, Ceips, Cobb-Hunter, Leach, Limehouse, Littlejohn, Ott and Scarborough: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-682 SO AS TO DESIGNATE BOILED PEANUTS AS THE OFFICIAL STATE SNACK FOOD.
Ordered for consideration tomorrow.

Rep. LEACH, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report on:

H. 4588 (Word version) -- Rep. Simrill: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION ERECT MARKERS OR SIGNS AT EXIT 82 B ALONG INTERSTATE HIGHWAY 77 IN YORK COUNTY THAT CONTAIN THE WORDS "CHERRY ROAD".
Ordered for consideration tomorrow.

Rep. LEACH, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report on:

H. 4596 (Word version) -- Reps. G. M. Smith, Weeks, Coates, G. Brown and J. H. Neal: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THAT PORTION OF HIGHWAY 76/378 IN SUMTER (KNOWN AS THE BROAD STREET EXTENSION) FROM LORING MILL ROAD TO SOUTH CAROLINA ROAD 441 IN HONOR OF RAMON W. SCHWARTZ, JR., ONE OF SOUTH CAROLINA'S MOST DISTINGUISHED PUBLIC OFFICIALS AND A FORMER SPEAKER OF THE HOUSE OF REPRESENTATIVES AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "RAMON W. SCHWARTZ, JR. HIGHWAY".
Ordered for consideration tomorrow.


Printed Page 733 . . . . . Wednesday, February 8, 2006

Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report on:

H. 4474 (Word version) -- Rep. Cooper: A JOINT RESOLUTION TO CLARIFY THE STATE BUDGET AND CONTROL BOARD'S ACTION TAKEN ON NOVEMBER 1, 2005, RELATING TO THE SECOND INJURY FUND'S ASSESSMENT.
Ordered for consideration tomorrow.

Rep. CATO, from the Committee on Labor, Commerce and Industry, submitted a favorable report with amendments on:

H. 4428 (Word version) -- Reps. Cato, Harrell, Sandifer, Altman, Bales, Bingham, Breeland, R. Brown, G. Brown, Ceips, Chellis, Clemmons, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Edge, Haley, Hamilton, Harrison, Hayes, Herbkersman, Hiott, Howard, Huggins, Jefferson, Jennings, Kirsh, Leach, Limehouse, Mack, Merrill, McGee, J. H. Neal, Owens, Perry, Rice, Scarborough, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. R. Smith, G. M. Smith, J. R. Smith, Talley, Taylor, Thompson, Townsend, Vaughn, White, Witherspoon, Young, Anderson, Anthony, Battle, Funderburk, Govan, Martin, Miller, Walker, Branham, J. Brown and Clark: A BILL TO ENACT THE "SOUTH CAROLINA COMPETITIVE CABLE SERVICES ACT" INCLUDING PROVISIONS TO ADD SECTION 58-12-5 TO THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO PROVIDE FOR A LEGISLATIVE PURPOSE, FINDINGS, PREEMPTION IN REGARD TO CABLE SERVICE AND DESIGNATE IT AS ARTICLE 1, CHAPTER 12 OF TITLE 58, TO DESIGNATE SECTIONS 58-12-10 THROUGH 58-12-130 AS ARTICLE 2 OF CHAPTER 12 OF TITLE 58; AND TO AMEND CHAPTER 12 OF TITLE 58 BY ADDING ARTICLE 3 SO AS TO PROVIDE FOR STATE-ISSUED CERTIFICATES OF FRANCHISE AUTHORITY AUTHORIZING THE APPLICANT TO OFFER CABLE SERVICE IN THIS STATE UNDER THE PROCEDURES AND REQUIREMENTS CONTAINED IN THIS ARTICLE.
Ordered for consideration tomorrow.


Printed Page 734 . . . . . Wednesday, February 8, 2006

Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report on:

H. 3831 (Word version) -- Reps. Talley and Harrison: A BILL TO AMEND SECTION 7-7-910, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PLACES WHERE ELECTORS ARE REGISTERED AND VOTE, SO AS TO PROVIDE THAT IN AN EMERGENCY SITUATION ELECTORS MAY VOTE IN A LOCATION OR AT A POLLING PLACE NOT WITHIN THE PRECINCT WHERE THE ELECTOR IS REGISTERED TO VOTE, AND TO PROVIDE CONDITIONS WHEN AN ALTERNATE POLLING PLACE MAY BE DESIGNATED.
Ordered for consideration tomorrow.

Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report with amendments on:

H. 4318 (Word version) -- Reps. Lucas, Altman, Vaughn, G. R. Smith, Cotty, Whipper, G. M. Smith, Moody-Lawrence, Brady and Ceips: A BILL TO AMEND SECTION 20-4-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ORDERS OF PROTECTION FROM DOMESTIC ABUSE AND THE AUTHORITY OF THE COURT IN CONNECTION WITH ISSUING SUCH ORDERS, SO AS TO PROVIDE THAT THE COURT ALSO MAY AWARD THE COST OF MEDICAL TREATMENT RECEIVED BY THE PETITIONER AS A RESULT OF THE ABUSE THAT GAVE RISE TO THE ORDER OF PROTECTION.
Ordered for consideration tomorrow.

HOUSE RESOLUTION

On motion of Rep. HOSEY, with unanimous consent, the following was taken up for immediate consideration:

H. 4613 (Word version) -- Reps. Hosey and Rhoad: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR TO THE PLAYERS, COACHES, AND SCHOOL OFFICIALS OF THE BLACKVILLE-HILDA HIGH SCHOOL FOOTBALL TEAM, AT A DATE AND TIME TO BE DETERMINED BY THE SPEAKER, TO COMMEND AND RECOGNIZE THEM FOR THEIR IMPRESSIVE WIN OF THE 2005 A STATE CHAMPIONSHIP TITLE AND TO HONOR THE


Printed Page 735 . . . . . Wednesday, February 8, 2006

PLAYERS AND THEIR HEAD COACH, DAVID BERRY, ON AN EXCEPTIONAL SEASON.

Be it resolved by the House of Representatives:

That the members of the House of Representatives of the State of South Carolina, by this resolution, extend the privilege of the floor to the players, coaches, and school officials of the Blackville-Hilda High School Football Team, at a date and time to be determined by the Speaker, to commend and recognize them for their impressive win of the 2005 A State Championship Title and honor the players and their Head Coach, David Berry, on an exceptional season.

The Resolution was adopted.

HOUSE RESOLUTION

The following was introduced:

H. 4614 (Word version) -- Reps. Vaughn, Cooper, Neilson, Bannister, Allen, Cato, Hamilton, Haskins, Leach, Loftis, Rice, F. N. Smith, G. R. Smith and Tripp: A HOUSE RESOLUTION TO RECOGNIZE AND HONOR THE REMARKABLE ACHIEVEMENTS OF THE STUDENTS, FACULTY, AND ADMINISTRATION OF THE GOVERNOR'S SCHOOL FOR THE ARTS AND HUMANITIES OF GREENVILLE IN 2005 AND TO ENCOURAGE THE CONTINUING ACHIEVEMENTS OF THIS OUTSTANDING INSTITUTION IN THE FUTURE.

The Resolution was adopted.

HOUSE RESOLUTION

On motion of Rep. VAUGHN, with unanimous consent, the following was taken up for immediate consideration:

H. 4615 (Word version) -- Reps. Vaughn, Cooper, Neilson, Bannister, Allen, Cato, Hamilton, Haskins, Leach, Loftis, Rice, F. N. Smith, G. R. Smith and Tripp: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO STUDENTS, FACULTY, AND ADMINISTRATION OF THE GOVERNOR'S SCHOOL FOR THE ARTS AND HUMANITIES OF GREENVILLE ON A DATE AND AT A TIME TO BE


Printed Page 736 . . . . . Wednesday, February 8, 2006

DETERMINED BY THE SPEAKER, TO RECOGNIZE THEM FOR THEIR OUTSTANDING ACHIEVEMENTS IN 2005.

Be it resolved by the House of Representatives:

That the members of the House of Representatives by this resolution, extend the privilege of the House floor to the students, faculty, and administration of the Governor's School for the Arts and Humanities on a date and time to be determined by the Speaker, to recognize them for their outstanding achievements in 2005.

The Resolution was adopted.

HOUSE RESOLUTION

The following was introduced:

H. 4616 (Word version) -- Reps. Neilson, J. Hines, Lucas and Bannister: A HOUSE RESOLUTION TO RECOGNIZE AND HONOR THE REMARKABLE ACHIEVEMENTS OF THE STUDENTS, FACULTY, AND ADMINISTRATION OF THE GOVERNOR'S SCHOOL FOR SCIENCE AND MATHEMATICS IN DARLINGTON COUNTY IN 2005 AND WISH THEM GREAT SUCCESS IN ALL THEIR FUTURE ENDEAVORS.

The Resolution was adopted.

HOUSE RESOLUTION

On motion of Rep. NEILSON, with unanimous consent, the following was taken up for immediate consideration:

H. 4617 (Word version) -- Reps. Neilson, J. Hines, Lucas and Bannister: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR TO THE STUDENTS, FACULTY, AND ADMINISTRATION OF THE GOVERNOR'S SCHOOL FOR SCIENCE AND MATHEMATICS ON A DATE AND AT A TIME TO BE DETERMINED BY THE SPEAKER.

Be it resolved by the House of Representatives:

That the members of the House of Representatives of the State of South Carolina, by this resolution, extend the privilege of the floor to


Printed Page 737 . . . . . Wednesday, February 8, 2006

the students, faculty, and administration of the Governor's School for Science and Mathematics on a date and at a time to be determined by the Speaker.

The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4618 (Word version) -- Reps. Vaughn, Cobb-Hunter, Hosey, Govan, Altman, Clyburn, Huggins, Jefferson, Leach, Loftis, E. H. Pitts, M. A. Pitts, J. R. Smith, Taylor and Young: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO EXAMINE THE ISSUE OF REAPPORTIONMENT OF THE SIXTEEN JUDICIAL CIRCUITS, TO PROVIDE FOR THE MAKEUP OF THE STUDY COMMITTEE, AND TO DIRECT THE STUDY COMMITTEE TO RECOMMEND APPROPRIATE CHANGES TO THE GENERAL ASSEMBLY BY FEBRUARY 15, 2007.
The Concurrent Resolution was ordered referred to the Committee on Judiciary.

CONCURRENT RESOLUTION

The following was introduced:

H. 4619 (Word version) -- Reps. Hosey and Rhoad: A CONCURRENT RESOLUTION TO CONGRATULATE THE BLACKVILLE-HILDA HIGH SCHOOL "FIGHTING HAWKS" FOOTBALL TEAM OF BARNWELL COUNTY ON CAPTURING THE 2005 CLASS A STATE CHAMPIONSHIP TITLE, AND TO HONOR THE PLAYERS AND THEIR COACHING STAFF, LED BY HEAD COACH, DAVID BERRY, ON COMPLETING AN AMAZING UNDEFEATED SEASON.

The Concurrent Resolution was agreed to and ordered sent to the Senate.


Printed Page 738 . . . . . Wednesday, February 8, 2006

INTRODUCTION OF BILLS

The following Bills and Joint Resolution were introduced, read the first time, and referred to appropriate committees:

H. 4620 (Word version) -- Rep. Altman: A BILL TO AMEND SECTION 59-150-230, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PAYMENT OF A LOTTERY PRIZE, SO AS TO PROVIDE THAT A LOTTERY PRIZE MUST NOT BE CLAIMED BY OR PAID TO AN ILLEGAL ALIEN AND TO PROVIDE THAT THE PRIZE MUST BE FORFEITED TO THE COMMISSION.
Referred to Committee on Judiciary

H. 4621 (Word version) -- Reps. Walker, Cato, Harrell, Bingham, Leach, Loftis, Tripp, Cooper, White, Townsend, Bales, Battle and Dantzler: A BILL TO AMEND SECTION 38-77-150, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF AN ACTION BY THE INSURER, SO AS TO ALLOW AN INSURER TO PROVIDE COVERAGE WITH CERTAIN LIMITATIONS IF THE INSURED ACCEPTS THE OFFER OF ALTERNATIVE COVERAGE; AND TO AMEND SECTION 38-77-350, RELATING TO THE FORM TO BE USED WHEN OPTIONAL AUTOMOBILE INSURANCE COVERAGES ARE OFFERED TO AN INSURED, SO AS TO PROVIDE THAT THE FORM MUST NOT NECESSARILY BE COMPLETED BY THE INSURED, BUT MUST BE SIGNED BY THE INSURED TO BE USED AS EVIDENCE OF INFORMED SELECTION.
Referred to Committee on Labor, Commerce and Industry

H. 4622 (Word version) -- Reps. Walker, Cato, Harrell, Bingham, Leach, Loftis, Tripp, Cooper, White, Townsend, Bales, Battle and Dantzler: A BILL TO AMEND SECTION 38-77-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FORM TO BE USED WHEN OPTIONAL AUTOMOBILE INSURANCE COVERAGES ARE OFFERED TO AN INSURED, SO AS TO PROVIDE THAT THE FORM MUST NOT NECESSARILY BE COMPLETED BY THE INSURED, BUT MUST BE SIGNED BY THE INSURED TO BE USED AS EVIDENCE OF INFORMED SELECTION.
Referred to Committee on Labor, Commerce and Industry


Printed Page 739 . . . . . Wednesday, February 8, 2006

H. 4624 (Word version) -- Reps. Vaughn, Harrell, Cooper, Haskins, Leach, Taylor, Bannister, Cato, Ceips, Hamilton, Littlejohn, Loftis, Mahaffey, Mitchell, Rice, Sinclair, F. N. Smith, G. R. Smith, W. D. Smith, Talley and Walker: A BILL TO AMEND SECTION 56-3-2330, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF MOTOR VEHICLE MANUFACTURER LICENSE PLATES BY THE DEPARTMENT OF MOTOR VEHICLES, SO AS TO INCREASE THE NUMBER OF LICENSE PLATES THAT THE DEPARTMENT MAY ISSUE TO A MOTOR VEHICLE MANUFACTURER.
Referred to Committee on Education and Public Works

H. 4625 (Word version) -- Reps. M. A. Pitts, R. Brown, Hardwick, Mahaffey, Umphlett and Witherspoon: A BILL TO AMEND SECTION 56-5-6520, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MANDATORY USE OF SAFETY BELTS BY OCCUPANTS OF A MOTOR VEHICLE, SO AS TO PROVIDE THAT A PREGNANT WOMAN IS NOT REQUIRED TO WEAR A SAFETY BELT WHILE TRAVELING IN A MOTOR VEHICLE.
Referred to Committee on Education and Public Works

S. 70 (Word version) -- Senators Thomas, Campsen, Bryant, Verdin, Gregory, Fair and Grooms: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-25-145 SO AS TO PROHIBIT OUTDOOR ADVERTISING SIGNS FOR AN ADULT OR SEXUALLY-ORIENTED BUSINESS FROM BEING LOCATED WITHIN ONE MILE OF A PUBLIC HIGHWAY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A PENALTY FOR A VIOLATION OF THIS SECTION; TO AMEND SECTION 57-25-120, AS AMENDED, RELATING TO THE DEFINITIONS OF THE HIGHWAY ADVERTISING CONTROL ACT, SO AS TO INCLUDE "ADULT BUSINESS", "SEMI-NUDITY", "SEXUALLY-ORIENTED BUSINESS", AND "SEXUALLY-ORIENTED MATERIALS"; AND TO AMEND SECTION 57-25-130, AS AMENDED, RELATING TO DECLARATIONS OF PURPOSE REGARDING THE HIGHWAY ADVERTISING CONTROL ACT, SO AS TO INCLUDE MITIGATING THE ADVERSE EFFECTS OF SEXUALLY-ORIENTED BUSINESSES AND LIMITING HARM TO MINORS.
Referred to Committee on Labor, Commerce and Industry


Printed Page 740 . . . . . Wednesday, February 8, 2006

S. 766 (Word version) -- Senator Verdin: A BILL TO AMEND SECTION 58-23-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TRANSPORTATION OF PERSONS OR PROPERTY FOR COMPENSATION ON ANY IMPROVED PUBLIC HIGHWAY OF THIS STATE, SO AS TO PROHIBIT ANY MOTOR VEHICLE CARRIER FROM ADVERTISING OR HOLDING HIMSELF OUT AS AN OPERATOR FOR THE TRANSPORTATION OF PERSONS OR PROPERTY WITHOUT FIRST HAVING OBTAINED A CERTIFICATE FROM THE OFFICE OF REGULATORY STAFF; TO AMEND SECTION 58-23-80, RELATING TO PENALTIES FOR VIOLATING THE PROVISIONS CONTAINED IN ARTICLES 1 THROUGH 12 OF CHAPTER 23 IN TITLE 58, SO AS TO PROVIDE THAT ANY PERSON VIOLATING THOSE PROVISIONS MAY BE IMPRISONED FOR A TERM NOT TO EXCEED THIRTY DAYS; AND TO AMEND SECTION 58-23-590, RELATING TO THE REGULATION OF HOUSEHOLD GOODS AND HAZARDOUS WASTE CARRIERS, SO AS TO PROVIDE THAT A CARRIER OPERATING IN VIOLATION OF THE PROVISIONS CONTAINED IN ARTICLES 1 THROUGH 12 OF CHAPTER 23 IN TITLE 58 MAY BE IMPRISONED FOR A TERM NOT TO EXCEED THIRTY DAYS.
Referred to Committee on Labor, Commerce and Industry

S. 776 (Word version) -- Senator Verdin: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW A PROPERTY TAX EXEMPTION FOR A MOTOR VEHICLE LICENSED AND REGISTERED BY THE SOUTH CAROLINA DEPARTMENT OF MOTOR VEHICLES AS AN ANTIQUE MOTOR VEHICLE.
Referred to Committee on Ways and Means

S. 961 (Word version) -- Senators McConnell, Ford, Knotts and Mescher: A BILL TO AMEND SECTION 5-1-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PREREQUISITES TO ISSUANCE OF A CORPORATE CERTIFICATE TO A PROPOSED MUNICIPALITY, SO AS TO REQUIRE THAT THE AREA SEEKING TO BE INCORPORATED FILE A PROPOSAL FOR PROVIDING EITHER DIRECTLY OR INDIRECTLY A SUBSTANTIALLY SIMILAR LEVEL OF LAW ENFORCEMENT SERVICES TO THE AREA'S EXISTING LAW


Printed Page 741 . . . . . Wednesday, February 8, 2006

ENFORCEMENT COVERAGE PRIOR TO SEEKING INCORPORATION.
Referred to Committee on Judiciary

S. 1017 (Word version) -- Senator Gregory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ALLOW YEAR OF MANUFACTURE LICENSE PLATES TO SERVE AS THE OFFICIAL LICENSE PLATES FOR CERTAIN MOTOR VEHICLES.
Referred to Committee on Judiciary

S. 1064 (Word version) -- Senator Gregory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY REDESIGNATING SECTION 50-3-180, AS AMENDED, RELATING TO THE MITIGATION TRUST FUND, AS ARTICLE 12 OF CHAPTER 3 OF TITLE 50, TO FURTHER PROVIDE FOR THE AUTHORITY OF THE TRUSTEES OF THE FUND, THE PURPOSES OF THE FUND, AND USES FOR WHICH THE FUND MAY BE EXPENDED; TO REPEAL SECTION 50-1-310, RELATING TO THE MITIGATION TRUST FUND.
Referred to Committee on Agriculture, Natural Resources and Environmental Affairs

S. 1083 (Word version) -- Senators Martin, Ford, Ritchie, Malloy and Cromer: A BILL TO AMEND ACT 166 OF 2005, RELATING TO CRIMINAL DOMESTIC VIOLENCE OFFENSES AND THEIR PENALTIES, SO AS TO EXTEND THE TIME PERIOD THAT THE STUDY COMMITTEE ON CRIMINAL DOMESTIC VIOLENCE ISSUES CREATED BY THIS ACT IS SCHEDULED TO REPORT ITS RECOMMENDATIONS TO THE GENERAL ASSEMBLY FROM FEBRUARY 15, 2006, TO THE APPROPRIATE TIME AFTER THE COMMITTEE HAS DETERMINED ITS RECOMMENDATIONS AND A FINAL REPORT OF THE COMMITTEE IS SUBMITTED TO THE GENERAL ASSEMBLY.
Referred to Committee on Judiciary

S. 1097 (Word version) -- Senator McConnell: A JOINT RESOLUTION TO ADOPT REVISED CODE VOLUMES 11 AND 18 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO THE EXTENT OF


Printed Page 742 . . . . . Wednesday, February 8, 2006

THEIR CONTENTS, AS THE ONLY GENERAL PERMANENT STATUTORY LAW OF THE STATE AS OF JANUARY 1, 2006.
Referred to Committee on Judiciary

HOUSE RESOLUTION

The following was introduced:

H. 4623 (Word version) -- Rep. Parks: A HOUSE RESOLUTION TO RECOGNIZE THE REVEREND R. C. OGLESBY FOR HIS MANY ACCOMPLISHMENTS AND SIX YEARS OF SERVICE AS PASTOR OF ANTIOCH BAPTIST CHURCH IN SALUDA, SOUTH CAROLINA.

The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4626 (Word version) -- Rep. Agnew: A CONCURRENT RESOLUTION TO HONOR AND CONGRATULATE THE DUE WEST MASONIC LODGE #100, A CONCURRENT BODY OF THE PRINCE HALL GRAND LODGE OF SOUTH CAROLINA, CHARTERED #100 ON DECEMBER 13, 1905, ON ITS 100TH ANNIVERSARY AND WISH THEM MUCH SUCCESS IN ALL THE LODGE'S FUTURE ENDEAVORS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 1126 (Word version) -- Senators Jackson and Lourie: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND MORGAN E. LEE, A SOCIAL STUDIES TEACHER AND SOCIAL STUDIES DEPARTMENT CHAIR AT E. L. WRIGHT MIDDLE SCHOOL OF RICHLAND COUNTY SCHOOL DISTRICT TWO, UPON BEING


Printed Page 743 . . . . . Wednesday, February 8, 2006

NAMED TEACHER OF THE YEAR FOR 2005-2006 AT E. L. WRIGHT.

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:

Agnew                  Altman                 Anderson
Anthony                Bailey                 Bales
Ballentine             Bannister              Barfield
Battle                 Bingham                Bowers
Brady                  Branham                Breeland
G. Brown               J. Brown               R. Brown
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Cobb-Hunter            Coleman
Cooper                 Cotty                  Dantzler
Delleney               Duncan                 Edge
Emory                  Frye                   Funderburk
Govan                  Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Hayes                  Herbkersman
J. Hines               M. Hines               Hinson
Hiott                  Hodges                 Hosey
Howard                 Huggins                Jefferson
Jennings               Kennedy                Kirsh
Leach                  Limehouse              Littlejohn
Lucas                  Mahaffey               Martin
McCraw                 McGee                  McLeod
Merrill                Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Norman                 Ott
Owens                  Parks                  Perry
Phillips               Pinson                 E. H. Pitts
M. A. Pitts            Rhoad                  Rice
Rivers                 Rutherford             Sandifer
Scarborough            Scott                  Skelton
D. C. Smith            F. N. Smith            G. M. Smith
G. R. Smith            J. E. Smith            J. R. Smith

Printed Page 744 . . . . . Wednesday, February 8, 2006

W. D. Smith            Stewart                Taylor
Thompson               Toole                  Umphlett
Vaughn                 Vick                   Viers
Walker                 Weeks                  White
Whitmire               Witherspoon            Young

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Wednesday, February 8.

Marty Coates                      Ronald Townsend
Gary Simrill                      Dwight Loftis
Scott Talley                      Phillip Sinclair
Gloria Haskins                    David Mack
Ralph Davenport                   Daniel Tripp

Total Present--121

LEAVE OF ABSENCE

The SPEAKER granted Rep. ALLEN a leave of absence due to a death in the family.

DOCTOR OF THE DAY

Announcement was made that Dr. William B. Jones of Greenville is the Doctor of the Day for the General Assembly.

SPECIAL PRESENTATION

Rep. CLYBURN presented to the House the Strom Thurmond High School Football Team, the AAA Champions, their coach and other school officials.

CO-SPONSORS ADDED AND REMOVED

In accordance with House Rule 5.2 below:
"5.2   Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second


Printed Page 745 . . . . . Wednesday, February 8, 2006

reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."

CO-SPONSOR ADDED

Bill Number:   H. 3972 (Word version)
Date:   ADD:
02/08/06   MAHAFFEY

CO-SPONSOR ADDED

Bill Number:   H. 4301 (Word version)
Date:   ADD:
02/08/06   DUNCAN

CO-SPONSOR ADDED

Bill Number:   H. 4544 (Word version)
Date:   ADD:
02/08/06   TOOLE

CO-SPONSOR ADDED

Bill Number:   H. 4544 (Word version)
Date:   ADD:
02/08/06   E. H. PITTS

CO-SPONSOR ADDED

Bill Number:   H. 4427 (Word version)
Date:   ADD:
02/08/06   THOMPSON

CO-SPONSOR REMOVED

Bill Number:   H. 4488 (Word version)
Date:   REMOVE:
02/08/06   SINCLAIR

CO-SPONSOR REMOVED

Bill Number:   H. 4488 (Word version)
Date:   REMOVE:
02/08/06   RHOAD


Printed Page 746 . . . . . Wednesday, February 8, 2006

SENT TO THE SENATE

The following Bills and Joint Resolutions were taken up, read the third time, and ordered sent to the Senate:

H. 4542 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE COMMISSION ON HIGHER EDUCATION, RELATING TO PALMETTO FELLOWS SCHOLARSHIP PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 3017, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4543 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE COMMISSION ON HIGHER EDUCATION, RELATING TO LIFE SCHOLARSHIP, SC HOPE SCHOLARSHIP, AND PALMETTO FELLOWS SCHOLARSHIP APPEALS REGULATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3018, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3993 (Word version) -- Rep. Edge: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 43-31-170 SO AS TO PROVIDE TRAINING AND EXPERIENCE REQUIREMENTS THAT A COUNSELOR FOR THE STATE AGENCY OF VOCATIONAL REHABILITATION SHALL MEET.

H. 3921 (Word version) -- Reps. Clemmons and Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-15-172 SO AS TO PROVIDE THAT MOBILE DENTAL FACILITIES OR PORTABLE DENTAL OPERATIONS MUST BE REGISTERED WITH THE STATE BOARD OF DENTISTRY, TO PROVIDE REGISTRATION CRITERIA, AND TO ESTABLISH FACILITY OPERATION REQUIREMENTS.

H. 4580 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION-BOARD OF NURSING, RELATING TO SUPERVISING LICENSEES, DESIGNATED AS REGULATION


Printed Page 747 . . . . . Wednesday, February 8, 2006

DOCUMENT NUMBER 3030, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4581 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION-BOARD OF NURSING, RELATING TO NURSE LICENSURE COMPACT, DESIGNATED AS REGULATION DOCUMENT NUMBER 3035, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

RETURNED TO THE SENATE WITH AMENDMENTS

The following Bills were taken up, read the third time, and ordered returned to the Senate with amendments:

S. 141 (Word version) -- Senators Hayes, Knotts and Elliott: A BILL TO AMEND SECTION 15-49-20 OF THE 1976 CODE, RELATING TO THE REQUIREMENTS OF A PETITIONER SEEKING A NAME CHANGE, TO PROVIDE THAT A PETITIONER REQUESTING A NAME CHANGE MUST SIGN AN AFFIDAVIT STATING HE HAS NEVER BEEN CONVICTED OF A CRIME UNDER A DIFFERENT NAME OTHER THAN THE NAME IN WHICH HE IS MAKING THE REQUEST AND TO PROVIDE A PENALTY FOR A VIOLATION OF THE SECTION.

S. 293 (Word version) -- Senators Hayes and Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-47 SO AS TO ALLOW A LAW ENFORCEMENT OFFICER EMPLOYED BY A NEIGHBORING STATE TO ENTER SOUTH CAROLINA IN FRESH PURSUIT OF A PERSON WHO IS IN FLIGHT FROM THE COMMISSION OF A CRIMINAL OFFENSE IN THE NEIGHBORING STATE AND TO ARREST THE PERSON, TO PROVIDE FOR A PROCEDURE TO DETERMINE THE LAWFULNESS OF THE ARREST, THE RELEASE OF THE PERSON ARRESTED, AND THE EXTRADITION OF THE ARRESTED PERSON, AND TO PROVIDE THAT THIS SECTION APPLIES ONLY TO LAW ENFORCEMENT OFFICERS EMPLOYED BY A NEIGHBORING STATE WHEN HIS STATE HAS ENACTED A PROVISION SIMILAR TO THIS SECTION


Printed Page 748 . . . . . Wednesday, February 8, 2006

RELATING TO THE ARREST AND CUSTODY OF A PERSON PURSUED INTO A NEIGHBORING STATE.

ORDERED ENROLLED FOR RATIFICATION

The following Bill was read the third time, passed and, 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:

S. 1036 (Word version) -- Senators Hayes, Peeler, Short and Gregory: A BILL TO DESIGNATE SECTIONS 1, 2, 3, AND 4 OF ACT 967 OF 1962, AS AMENDED, RELATING TO YORK COUNTY COMMISSION FOR TECHNICAL EDUCATION AS SECTIONS 59-53-1310, 59-53-1320, 59-53-1330, AND 59-53-1340 OF THE 1976 CODE TO BE CONTAINED IN ARTICLE 16, CHAPTER 53, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, ENTITLED "YORK COMMISSION FOR TECHNICAL EDUCATION"; AND TO AMEND ARTICLE 16, CHAPTER 53 OF TITLE 59, RELATING TO THE YORK COMMISSION FOR TECHNICAL EDUCATION, SO AS TO ADD A MEMBER TO THE COMMISSION FROM CHESTER COUNTY AND A MEMBER FROM LANCASTER COUNTY, TO PROVIDE FOR THEIR APPOINTMENTS AND TERMS OF OFFICE; AND TO FURTHER PROVIDE FOR THE POWERS AND DUTIES OF THE COMMISSION.

H. 4239--ORDERED TO THIRD READING

The following Joint Resolution was taken up:

H. 4239 (Word version) -- Reps. Umphlett, Dantzler, Hinson and Jefferson: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 24 OF ARTICLE III, SECTION 3 OF ARTICLE VI, AND SECTION 1A OF ARTICLE XVII, TO THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO DUAL OFFICEHOLDING AND QUALIFICATION FOR OFFICE, SO AS TO PROVIDE THAT THE PROHIBITION AGAINST HOLDING TWO OFFICES DOES NOT APPLY TO COMMISSIONED LAW ENFORCEMENT OFFICERS EMPLOYED BY A COUNTY AND MUNICIPAL POLICE OFFICERS EMPLOYED IN A COUNTY IN WHICH THEY DO NOT RESIDE WHO HOLD ANOTHER OFFICE.

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


Printed Page 749 . . . . . Wednesday, February 8, 2006

SECTION   1. It is proposed that Section 24 of Article III of the Constitution of this State be amended to read:

"Section 24.   No person is eligible to a seat in the General Assembly while he holds any office or position of profit or trust under this State, the United States of America, or any of them, or under any other power, except officers in the militia, members of lawfully and regularly organized fire departments, constables, commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside, and notaries public. If any member accepts or exercises any of the disqualifying offices or positions he shall vacate his seat."

SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballots:

"Must Section 24 of Article III of the Constitution of this State be amended so as to add commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside as persons who are exempt from the prohibition against members of the General Assembly holding two offices?

Yes   []
No   []

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

SECTION   3.   It is proposed that Section 3 of Article VI of the Constitution of this State be amended to read:

"Section   3.   No person may hold two offices of honor or profit at the same time. This limitation does not apply to officers in the militia, notaries public, members of lawfully and regularly organized fire departments, constables, commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside, or delegates to a Constitutional Convention."


Printed Page 750 . . . . . Wednesday, February 8, 2006

SECTION   4.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballots:

"Must Section 3, Article VI of the Constitution of this State be amended so as to provide that the prohibition against dual officeholding does not apply to commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside who hold another office?

Yes   []
No   []

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

SECTION   5.   It is proposed that Section 1A of Article XVII of the Constitution of this State be amended to read:

"Section 1A.   Every qualified elector is eligible to any office to be voted for, unless disqualified by age, as prescribed in this Constitution. No person may hold two offices of honor or profit at the same time, but any person holding another office may at the same time be an officer in the militia, member of a lawfully and regularly organized fire department, constable, commissioned law enforcement officers employed by a county and municipal police officer employed in a county in which they do not reside, or a notary public. The limitation above set forth 'No person may hold two offices of honor or profit at the same time,' does not apply to the circuit judges of the State under the circumstances stated in this section, but whenever it appears that any or all of the Justices of the Supreme Court are disqualified or otherwise prevented from presiding in any cause for the reasons set forth in Section 6 of Article V of the Constitution, the Chief Justice or in his stead the Senior Associate Justice when available shall designate the requisite number of circuit judges for the hearing and determination of the hearing. The limitation above set forth does not prohibit any officeholder from being a delegate to a constitutional convention."
SECTION   6.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives.


Printed Page 751 . . . . . Wednesday, February 8, 2006

Ballots must be provided at the various voting precincts with the following words printed or written on the ballots:

"Must Section 1A of Article XVII of the Constitution of this State be amended so as to provide that the prohibition against dual officeholding does not apply to commissioned law enforcement officers employed by a county and municipal police officers employed in a county in which they do not reside who hold another office?

Yes   []
No   []

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

Rep. HARRISON explained the Joint Resolution.

Pursuant to the provisions of the Constitution the yeas and nays were taken on the passage of the Joint Resolution, resulting as follows:

Yeas 50; Nays 46

Those who voted in the affirmative are:

Altman                 Anthony                Bailey
Barfield               Bingham                Bowers
Brady                  Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Coates                 Coleman
Cooper                 Cotty                  Dantzler
Delleney               Duncan                 Edge
Hagood                 Hardwick               Harrell
Harrison               Hayes                  Herbkersman
Hinson                 Jefferson              Jennings
Leach                  Limehouse              McCraw
McGee                  McLeod                 Merrill
Neilson                Phillips               M. A. Pitts
Rice                   D. C. Smith            J. R. Smith
W. D. Smith            Stewart                Taylor
Umphlett               Vaughn                 Viers
Witherspoon            Young

Total--50


Printed Page 752 . . . . . Wednesday, February 8, 2006

Those who voted in the negative are:
Agnew                  Anderson               Bales
Ballentine             Bannister              Battle
Branham                G. Brown               J. Brown
R. Brown               Cato                   Emory
Frye                   Funderburk             Haley
Hamilton               J. Hines               M. Hines
Hiott                  Hodges                 Huggins
Kirsh                  Lucas                  Mahaffey
Martin                 Moody-Lawrence         J. H. Neal
J. M. Neal             Norman                 Owens
Parks                  Perry                  Pinson
E. H. Pitts            Rivers                 Rutherford
Sandifer               Scott                  Simrill
Skelton                G. M. Smith            Thompson
Toole                  Weeks                  White
Whitmire

Total--46

So, the Joint Resolution was read second time and ordered to third reading.

RECORD FOR VOTING

During the vote, my voting system malfunctioned. I would have voted "yes" to H. 4239.

Rep. Ted Vick

H. 4301--ORDERED TO THIRD READING

The following Bill was taken up:

H. 4301 (Word version) -- Reps. G. M. Smith, Bailey, Harrison, Altman, Vaughn, G. R. Smith, Battle, Kirsh, M. A. Pitts, Coates, Moody-Lawrence, Toole, Vick, Littlejohn, Sandifer, Owens, Ceips, Funderburk, Weeks, Rice, Simrill, Chellis, Viers and Duncan: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 6, CHAPTER 11, TITLE 16 SO AS TO ENACT THE "PROTECTION OF PERSONS AND PROPERTY ACT", TO DEFINE THE TERMS "DWELLING", "GREAT BODILY INJURY", "RESIDENCE", AND "VEHICLE", TO AUTHORIZE THE LAWFUL USE OF DEADLY FORCE AGAINST AN INTRUDER


Printed Page 753 . . . . . Wednesday, February 8, 2006

OR ATTACKER IN A PERSON'S DWELLING, RESIDENCE, OR OCCUPIED VEHICLE UNDER CERTAIN CIRCUMSTANCES, TO PROVIDE EXCEPTIONS, TO PROVIDE THAT THERE IS NO DUTY TO RETREAT IF THE PERSON IS IN A PLACE WHERE HE HAS A RIGHT TO BE, INCLUDING THE PERSON'S PLACE OF BUSINESS, AND THE USE OF DEADLY FORCE IS NECESSARY TO PREVENT DEATH, GREAT BODILY INJURY, OR THE COMMISSION OF A VIOLENT CRIME, AND TO PROVIDE THAT A PERSON WHO LAWFULLY USES DEADLY FORCE IS IMMUNE FROM CRIMINAL PROSECUTION AND CIVIL ACTION AND MAY NOT BE ARRESTED UNLESS PROBABLE CAUSE EXISTS THAT THE DEADLY FORCE USED WAS UNLAWFUL.

Rep. G. M. SMITH explained the Bill.

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

Yeas 108; Nays 0

Those who voted in the affirmative are:

Agnew                  Altman                 Anderson
Anthony                Bailey                 Bales
Ballentine             Bannister              Barfield
Battle                 Bingham                Bowers
Brady                  Branham                Breeland
G. Brown               J. Brown               R. Brown
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Coates                 Cobb-Hunter
Coleman                Cooper                 Cotty
Dantzler               Delleney               Duncan
Edge                   Emory                  Frye
Funderburk             Govan                  Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Hayes
Herbkersman            J. Hines               M. Hines
Hinson                 Hiott                  Hodges
Hosey                  Howard                 Huggins
Jefferson              Jennings               Kirsh
Leach                  Limehouse              Littlejohn

Printed Page 754 . . . . . Wednesday, February 8, 2006

Lucas                  Mahaffey               Martin
McCraw                 McLeod                 Merrill
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Norman
Ott                    Owens                  Parks
Perry                  Phillips               Pinson
E. H. Pitts            M. A. Pitts            Rhoad
Rice                   Rutherford             Sandifer
Scarborough            Scott                  Simrill
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. E. Smith            J. R. Smith
Stewart                Taylor                 Thompson
Toole                  Townsend               Umphlett
Vaughn                 Vick                   Viers
Walker                 Weeks                  White
Whitmire               Witherspoon            Young

Total--108

Those who voted in the negative are:

Total--0

So, the Bill was read the second time and ordered to third reading.

ORDERED TO THIRD READING

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

H. 4594 (Word version) -- Reps. Vick, Witherspoon, Clemmons and Hardwick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-5595 SO AS TO PROVIDE THAT FOR PURPOSES OF THE NONRECOGNITION OF GAIN UNDER SECTION 1031 OF THE INTERNAL REVENUE CODE AND COMPARABLE PROVISIONS OF STATE LAW, THE CONVEYANCE BY TIMBER DEED OF THE RIGHT TO CUT STANDING TIMBER IS CONSIDERED A CONVEYANCE OF A REAL PROPERTY INTEREST AND AS SUCH UNDER THE LAWS OF THIS STATE IS A LIKE-KIND EXCHANGE WITH OTHER SIMILAR CONVEYANCES OF A REAL PROPERTY


Printed Page 755 . . . . . Wednesday, February 8, 2006

INTEREST OR WITH CONVEYANCES OF SIMILAR INVESTMENT REAL PROPERTY OWNED IN FEE SIMPLE.

H. 4450--ORDERED TO THIRD READING

The following Joint Resolution was taken up:

H. 4450 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Haley, Chellis, E. H. Pitts, Townsend, Clark, Altman, Bailey, Bales, Bingham, Bowers, Brady, Cato, Ceips, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood, Harrison, Haskins, Herbkersman, Hinson, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mahaffey, Martin, Phillips, Pinson, M. A. Pitts, Rhoad, Sandifer, Scarborough, G. M. Smith, J. R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, W. D. Smith, Kirsh, Huggins, Hamilton, McGee and Stewart: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION, BY ADDING A NEW SECTION 1A SO AS TO PROVIDE THAT FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF PROPERTY TAX MEANS ITS FAIR MARKET VALUE WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW MAY DEFINE AN OWNERSHIP TRANSFER AND AN IMPROVEMENT TO REAL PROPERTY, AND MAY ESTABLISH A BASE YEAR FOR DETERMINING INITIAL FAIR MARKET VALUE FOR PURPOSES OF THIS NEW SECTION; AND TO AMEND SECTION 3, ARTICLE X, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE AN ADDITIONAL EXEMPTION FROM PROPERTY TAX EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF A HOMESTEAD AS PRESCRIBED BY THE GENERAL ASSEMBLY BY LAW, AND TO PROVIDE THAT THIS ADDITIONAL EXEMPTION DOES NOT APPLY WITH RESPECT TO PROPERTY TAX IMPOSED FOR PAYMENT OF GENERAL OBLIGATION DEBT.

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


Printed Page 756 . . . . . Wednesday, February 8, 2006

SECTION   1.   It is proposed that Article X of the Constitution of this State be amended by adding a new section to read:

"Section 1A.   Effective for property tax years in which and after which this section is ratified, for purposes of Section 1 of this article, fair market value of real property means its fair market value when ownership of the property last was transferred, increased by the fair market value of improvements made to the real property since ownership of the real property last was transferred. The General Assembly may by law define an ownership transfer, and an improvement to real property, and provide a base year for determining initial fair market value for purposes of the definition provided in this section."

SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Article X of the Constitution of this State, relating to finance and taxation, be amended by adding a new Section 1A so as to provide that the fair market value of real property for purposes of the property tax means its fair market value when ownership of the real property last was transferred, increased by the fair market value of improvements made to the real property since its ownership last was transferred, and to provide that the General Assembly by law may define an ownership transfer, and an improvement to real property, and establish a base year for determining initial fair market value for purposes of the definition?

Yes   []
No   []

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

SECTION   3.   It is proposed that the first undesignated paragraph of Section 3, Article X of the Constitution of this State be amended by adding a new item (k) to read:


Printed Page 757 . . . . . Wednesday, February 8, 2006

"(k)   effective beginning for real property tax years in which and after which this item is ratified and in addition to the homestead exemption provided in item (i) above, an additional homestead exemption equal to one hundred percent of the fair market value of the homestead under conditions prescribed by the General Assembly by general law except that this additional exemption does not apply with respect to property tax imposed for payment of general obligation debt;"

SECTION   4.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 3, Article X of the Constitution of this State, relating to exemptions from property tax, be amended so as to provide an additional exemption from property tax equal to one hundred percent of the fair market value of a homestead as prescribed by the General Assembly by law, and to provide that this exemption does not apply with respect to property tax imposed for payment of general obligation debt?

Yes   []
No   []

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

Rep. SKELTON proposed the following Amendment No. 1 (Doc Name COUNCIL\BBM\9203HTC06), which was tabled:
Amend the joint resolution, as and if amended, by striking SECTIONS 1 and 2 and inserting:
SECTION   1.   It is proposed that Article X of the Constitution of this State be amended by adding a new section to read:

"Section 1A.   Effective for property tax years in which and after which this section is ratified, for purposes of Section 1 of this article, fair market value of real property means its fair market value subject to limits as the General Assembly may provide by law."
SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives.


Printed Page 758 . . . . . Wednesday, February 8, 2006

Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Article X of the Constitution of this State, relating to finance and taxation, be amended by adding a new Section 1A so as to provide that the fair market value of real property for purposes of the property tax means its fair market value subject to limits as the General Assembly may provide by law?

Yes   []
No   []

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

Rep. SKELTON explained the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.
Rep. COTTY spoke against the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.

Rep. COTTY moved to table the amendment.

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

Yeas 67; Nays 48

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Bowers                 Brady                  Cato
Ceips                  Chellis                Clemmons
Coates                 Cooper                 Cotty
Dantzler               Delleney               Duncan
Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Mahaffey               Martin                 McCraw

Printed Page 759 . . . . . Wednesday, February 8, 2006

McGee                  Merrill                Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Sinclair               D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Vick
Walker                 White                  Witherspoon
Young

Total--67

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Branham
Breeland               G. Brown               J. Brown
R. Brown               Chalk                  Clyburn
Cobb-Hunter            Coleman                Emory
Funderburk             Govan                  Hayes
J. Hines               M. Hines               Hiott
Hodges                 Hosey                  Howard
Jefferson              Jennings               Kennedy
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Norman                 Ott
Owens                  Parks                  Perry
Rhoad                  Rice                   Rivers
Rutherford             Scott                  Skelton
J. E. Smith            Weeks                  Whitmire

Total--48

So, the amendment was tabled.

Reps. J. E. SMITH, FUNDERBURK, GOVAN and RUTHERFORD proposed the following Amendment No. 3 (Doc Name COUNCIL\GJK\20809SD06), which was tabled:
Amend the joint resolution, as and if amended, in SECTION 3, by adding after /debt/ on line 5, page 3, /or to property tax imposed for general operating purposes by a county or municipality /;


Printed Page 760 . . . . . Wednesday, February 8, 2006

Amend the joint resolution further, as and if amended, in SECTION 4, by adding after /debt/ on line 18, page 3, / or to property tax imposed for general operating purposes by a county or municipality /;
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.
Rep. COTTY spoke against the amendment.
Rep. W. D. SMITH spoke against the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.
Rep. OTT spoke in favor of the amendment.

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 67; Nays 45

Those who voted in the affirmative are:

Altman                 Bailey                 Bannister
Barfield               Bingham                Brady
Cato                   Ceips                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Delleney               Duncan                 Edge
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Mahaffey               Martin                 McCraw
McGee                  Merrill                Norman
Owens                  Perry                  Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Sinclair               D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Walker

Printed Page 761 . . . . . Wednesday, February 8, 2006

White                  Whitmire               Witherspoon
Young

Total--67

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Ballentine             Battle
Bowers                 Branham                Breeland
G. Brown               J. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Emory                  Frye                   Funderburk
Govan                  Hagood                 Hayes
J. Hines               Hiott                  Hodges
Hosey                  Howard                 Jefferson
Jennings               Kennedy                McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rice
Rivers                 Rutherford             Skelton
J. E. Smith            Vick                   Weeks

Total--45

So, the amendment was tabled.

Reps. J. E. SMITH, FUNDERBURK, GOVAN and RUTHERFORD proposed the following Amendment No. 4 (Doc Name COUNCIL\GJK\20810SD06), which was tabled:
Amend the joint resolution, as and if amended, in SECTION 3, by adding after /homestead / on line 2, page 3, /up to a fair market value of two hundred fifty thousand dollars/;
Amend the joint resolution further, as and if amended, in SECTION 4, by adding after /homestead / on line 15, page 3, /up to a fair market value of two hundred fifty thousand dollars/;
Renumber sections to conform.
Amend title to conform.

Rep. ANDERSON explained the amendment.
Rep. COTTY spoke against the amendment.
Rep. J. H. NEAL spoke in favor of the amendment.


Printed Page 762 . . . . . Wednesday, February 8, 2006

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 71; Nays 42

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Coates                 Cooper
Cotty                  Dantzler               Delleney
Duncan                 Edge                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Hiott
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McGee                  Merrill                Mitchell
Owens                  Perry                  Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Sinclair               Skelton                D. C. Smith
G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  White                  Whitmire
Witherspoon            Young

Total--71

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn
Coleman                Emory                  Frye
Funderburk             Govan                  Hayes

Printed Page 763 . . . . . Wednesday, February 8, 2006

J. Hines               Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                McCraw                 McLeod
Miller                 Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Ott
Parks                  Rhoad                  Rice
Rivers                 Rutherford             Scott
J. E. Smith            Vick                   Weeks

Total--42

So, the amendment was tabled.

Reps. J. E. SMITH, FUNDERBURK, GOVAN, OTT and RUTHERFORD proposed the following Amendment No. 5 (Doc Name COUNCIL\GJK\20811SD06), which was tabled:
Amend the joint resolution, as and if amended, in SECTION 3, by adding after /homestead / on line 2, page 3 /up to a fair market value of five hundred thousand dollars /;
Amend the joint resolution further, as and if amended, in SECTION 4, by adding after /homestead / on line 15, page 3, / up to a fair market value of five hundred thousand dollars /;
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 68; Nays 41

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bingham                Brady                  Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Delleney               Edge                   Frye
Hagood                 Haley                  Hamilton

Printed Page 764 . . . . . Wednesday, February 8, 2006

Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McGee                  Merrill
Owens                  Perry                  Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  White                  Whitmire
Witherspoon            Young

Total--68

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Bowers                 Branham                Breeland
G. Brown               J. Brown               R. Brown
Clyburn                Coleman                Emory
Funderburk             Govan                  Hayes
J. Hines               Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                McCraw                 McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rhoad
Rutherford             Scott                  J. E. Smith
Vick                   Weeks

Total--41

So, the amendment was tabled.

Rep. FUNDERBURK proposed the following Amendment No. 9 (Doc Name COUNCIL\GJK\20815SD06), which was tabled:


Printed Page 765 . . . . . Wednesday, February 8, 2006

Amend the joint resolution, as and if amended, in SECTION 1, by adding after /transferred / on line 7, page 2 /and increased or decreased by an inflation or deflation factor each year as prescribed by the General Assembly by law/;
Amend the joint resolution further, as and if amended, in SECTION 2, by adding after /transferred / on line 23, page 2, /and increased or decreased by an inflation or deflation factor each year as prescribed by the General Assembly by law /;
Renumber sections to conform.
Amend title to conform.

Rep. FUNDERBURK explained the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 70; Nays 40

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Coates                 Cooper
Cotty                  Dantzler               Delleney
Duncan                 Edge                   Frye
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McGee                  Merrill
Mitchell               Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Sinclair               Skelton                D. C. Smith
G. M. Smith            G. R. Smith            J. R. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend

Printed Page 766 . . . . . Wednesday, February 8, 2006

Umphlett               Vaughn                 Viers
Walker                 White                  Witherspoon
Young

Total--70

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn
Coleman                Emory                  Funderburk
Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Howard
Jefferson              Jennings               Kennedy
McLeod                 Miller                 Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rhoad
Rice                   Rivers                 Rutherford
Scott                  J. E. Smith            Vick
Weeks

Total--40

So, the amendment was tabled.

Rep. BOWERS proposed the following Amendment No. 10 (Doc Name COUNCIL\GJK\20802SD06), which was tabled:
Amend the joint resolution, as and if amended, in item (k) of Section 3, Article X of the Constitution, as contained in SECTION 3 of the Joint Resolution, by striking /homestead/ on line 43, page 2, and adding /and other classes of real property provided by the General Assembly by law/ after /homestead/ on line 2, page 3;
Amend further in SECTION 4, by adding after /homestead/ on line 15, page 3, /and other classes of real property provided by the General Assembly by law/;
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.


Printed Page 767 . . . . . Wednesday, February 8, 2006

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 69; Nays 45

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Coates                 Cooper
Cotty                  Dantzler               Duncan
Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Hinson                 Hiott                  Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Mahaffey               Martin                 McGee
Merrill                Norman                 Owens
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  Walker                 White
Whitmire               Witherspoon            Young

Total--69

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn
Coleman                Delleney               Emory
Funderburk             Govan                  Hayes
Herbkersman            J. Hines               Hodges

Printed Page 768 . . . . . Wednesday, February 8, 2006

Hosey                  Jefferson              Jennings
Kennedy                McCraw                 McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Phillips
Rhoad                  Rice                   Rivers
Rutherford             Scott                  J. E. Smith
Stewart                Vick                   Weeks

Total--45

So, the amendment was tabled.

Rep. MCLEOD proposed the following Amendment No. 12 (Doc Name COUNCIL\BBM\9219HTC06), which was tabled:
Amend the joint resolution, as and if amended, by striking SECTIONS 3 and 4 and inserting:
/ SECTION   3.   It is proposed that the first undesignated paragraph of Section 3, Article X of the Constitution of this State be amended by adding a new item (k) to read:

"(k)   effective beginning for real property tax years in which and after which this item is ratified and in addition to the homestead exemption provided in item (i) above, an additional homestead exemption from property taxes imposed for school operations under conditions and limits prescribed by the General Assembly by general law except that this additional exemption does not apply with respect to property tax imposed for payment of a school district's general obligation debt;"
SECTION   4.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 3, Article X of the Constitution of this State, relating to exemptions from property tax, be amended so as to provide an additional homestead exemption from property tax imposed for school operations under conditions and limits as prescribed by the General Assembly by law, and to provide that this exemption does not apply with respect to property tax imposed for payment of a school district's general obligation debt?

Yes   []
No   []


Printed Page 769 . . . . . Wednesday, February 8, 2006

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'." /
Renumber sections to conform.
Amend title to conform.

Rep. MCLEOD explained the amendment.
Rep. MCLEOD spoke in favor of the amendment.

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 70; Nays 44

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Cato                   Ceips
Chellis                Clark                  Clemmons
Coates                 Cooper                 Cotty
Dantzler               Delleney               Duncan
Edge                   Frye                   Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Herbkersman
Hinson                 Hiott                  Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Mahaffey               Martin                 McCraw
McGee                  Merrill                Owens
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson
Toole                  Townsend               Umphlett
Vaughn                 Viers                  Walker

Printed Page 770 . . . . . Wednesday, February 8, 2006

White                  Whitmire               Witherspoon
Young

Total--70

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn
Cobb-Hunter            Coleman                Emory
Funderburk             Govan                  Hagood
Hayes                  J. Hines               Hodges
Hosey                  Jefferson              Jennings
Kennedy                Mack                   McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Phillips
Rhoad                  Rice                   Rivers
Rutherford             Scott                  J. E. Smith
Vick                   Weeks

Total--44

So, the amendment was tabled.

Rep. J. E. SMITH proposed the following Amendment No. 13 (Doc Name COUNCIL\GJK\20818SD06), which was tabled:
Amend the joint resolution, as and if amended, in SECTION 3, by adding after /debt/ on line 5, page 3 / . the General Assembly by law may also provide for a credit against property taxes imposed against a homestead for general obligation debt service based on the owner's income/
Amend the joint resolution further, as and if amended, in SECTION 4 by adding after /debt/ on line 18, page 3 / , and to provide that the General Assembly by law may also provide for a credit against property taxes imposed against a homestead for general obligation debt service based on the owner's income/
Renumber sections to conform.
Amend title to conform.


Printed Page 771 . . . . . Wednesday, February 8, 2006

Rep. J. E. SMITH explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 64; Nays 47

Those who voted in the affirmative are:

Altman                 Ballentine             Bannister
Bingham                Brady                  Cato
Ceips                  Chellis                Clark
Clemmons               Coates                 Cooper
Dantzler               Delleney               Duncan
Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Hiott
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Owens                  Perry                  Pinson
E. H. Pitts            M. A. Pitts            Sandifer
Scarborough            Simrill                Sinclair
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Toole
Townsend               Umphlett               Vaughn
White                  Whitmire               Witherspoon
Young

Total--64

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bailey                 Bales                  Barfield
Battle                 Bowers                 Branham
Breeland               G. Brown               J. Brown
R. Brown               Clyburn                Cobb-Hunter
Coleman                Emory                  Funderburk

Printed Page 772 . . . . . Wednesday, February 8, 2006

Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Jefferson
Jennings               Kennedy                Mack
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Ott                    Parks
Phillips               Rice                   Rivers
Rutherford             Scott                  Skelton
J. E. Smith            Thompson               Vick
Viers                  Weeks

Total--47

So, the amendment was tabled.

Rep. KENNEDY proposed the following Amendment No. 14 (Doc Name COUNCIL\NBD\12119AC06), which was tabled:
Amend the joint resolution, as and if amended, by deleting SECTIONS 1 and 2 of the joint resolution and inserting:
/SECTION   1.   It is proposed that Article X of the Constitution of this State be amended by adding a new section to read:

"Section 1A.   Effective for property tax years in which and after which this section is ratified, for purposes of Section 1 of this article, the General Assembly may by law define the fair market value of real property for the purposes of the property tax."
SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Article X of the Constitution of this State, relating to finance and taxation, be amended by adding a new Section 1A so as to provide that the General Assembly by law may define the fair market value of real property for the purposes of the property tax?

Yes   []
No   []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."/
Renumber sections to conform.
Amend title to conform.


Printed Page 773 . . . . . Wednesday, February 8, 2006

Rep. KENNEDY explained the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 71; Nays 42

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Coates                 Cooper
Cotty                  Dantzler               Delleney
Duncan                 Edge                   Frye
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Herbkersman            Hinson                 Hiott
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Owens                  Perry                  Pinson
E. H. Pitts            M. A. Pitts            Sandifer
Scarborough            Simrill                Sinclair
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--71

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn

Printed Page 774 . . . . . Wednesday, February 8, 2006

Cobb-Hunter            Coleman                Funderburk
Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Howard
Jefferson              Jennings               Kennedy
Mack                   McLeod                 Miller
Mitchell               Moody-Lawrence         J. H. Neal
Neilson                Ott                    Parks
Phillips               Rhoad                  Rice
Rivers                 Rutherford             Scott
J. E. Smith            Vick                   Weeks

Total--42

So, the amendment was tabled.

Rep. SCOTT proposed the following Amendment No. 15 (Doc Name COUNCIL\GJK\20836SD06), which was tabled:
Amend the joint resolution, as and if amended, in item (k) of Section 3, Article X of the Constitution, as contained in SECTION 3 of the Joint Resolution, by striking /homestead/ on line 43, page 2, and adding /and rental real property as provided by the General Assembly by law/ after /homestead/ on line 2, page 3;
Amend further in SECTION 4, by adding after /homestead/ on line 15, page 3, /and rental real property as provided by the General Assembly by law/;
Renumber sections to conform.
Amend title to conform.

Rep. SCOTT explained the amendment.

Rep. COTTY moved to table the amendment.

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

Yeas 74; Nays 39

Those who voted in the affirmative are:

Altman                 Anthony                Bailey
Ballentine             Bannister              Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark

Printed Page 775 . . . . . Wednesday, February 8, 2006

Clemmons               Coates                 Coleman
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Herbkersman
Hinson                 Hiott                  Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Lucas
Mahaffey               Martin                 McCraw
McGee                  Merrill                Owens
Perry                  Phillips               Pinson
E. H. Pitts            M. A. Pitts            Rice
Sandifer               Scarborough            Simrill
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--74

Those who voted in the negative are:

Agnew                  Anderson               Bales
Barfield               Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               R. Brown               Clyburn
Cobb-Hunter            Emory                  Funderburk
Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Jefferson
Kennedy                Mack                   McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rhoad
Rivers                 Rutherford             Scott
J. E. Smith            Vick                   Weeks

Total--39


Printed Page 776 . . . . . Wednesday, February 8, 2006

So, the amendment was tabled.

Rep. SCOTT proposed the following Amendment No. 16 (Doc Name COUNCIL\GJK\20837SD06), which was tabled:
Amend the joint resolution, as and if amended, in item (k) of Section 3, Article X of the Constitution, as contained in SECTION 3 of the Joint Resolution, by striking /homestead/ on line 43, page 2, and adding /and commercial or rental real property as provided by the General Assembly by law/ after /homestead/ on line 2, page 3;
Amend further in SECTION 4, by adding after /homestead/ on line 15, page 3, /and commercial or rental real property as provided by the General Assembly by law/;
Renumber sections to conform.
Amend title to conform.

Rep. SCOTT explained the amendment.

Rep. COTTY moved to table the amendment.

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

Yeas 71; Nays 42

Those who voted in the affirmative are:

Altman                 Anthony                Bailey
Ballentine             Bannister              Bingham
Brady                  Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Coates                 Coleman
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Herbkersman
Hinson                 Hiott                  Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Lucas                  Mahaffey
Martin                 McCraw                 Merrill
Owens                  Perry                  Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill

Printed Page 777 . . . . . Wednesday, February 8, 2006

Sinclair               Skelton                D. C. Smith
G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  White                  Whitmire
Witherspoon            Young

Total--71

Those who voted in the negative are:

Agnew                  Anderson               Barfield
Battle                 Bowers                 Branham
Breeland               G. Brown               J. Brown
R. Brown               Cobb-Hunter            Emory
Frye                   Funderburk             Govan
Hayes                  J. Hines               Hodges
Hosey                  Howard                 Jefferson
Jennings               Kennedy                Mack
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Ott                    Parks
Rhoad                  Rice                   Rivers
Rutherford             Scott                  J. E. Smith
Vick                   Walker                 Weeks

Total--42

So, the amendment was tabled.

Rep. BALES proposed the following Amendment No. 17 (Doc Name COUNCIL\GGS\22421SJ06), which was tabled:
Amend the joint resolution, by deleting SECTIONS 3 and 4 and inserting:
/   SECTION   3.   It is proposed that the first undesignated paragraph of Section 3, Article X of the Constitution of this State be amended by adding a new item (k) to read:

"(k)   effective beginning for real property tax years in which and after which this item is ratified and in addition to the homestead exemption provided in item (i) above, an additional homestead exemption equal to one hundred percent of the fair market value, up to


Printed Page 778 . . . . . Wednesday, February 8, 2006

one million dollars adjusted annually for inflation as the general assembly shall prescribe by law, of the homestead under conditions prescribed by the General Assembly by general law except that this additional exemption does not apply with respect to property tax imposed for payment of general obligation debt;"
SECTION   4.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 3, Article X of the Constitution of this State, relating to exemptions from property tax, be amended so as to provide an additional exemption from property tax equal to one hundred percent of the fair market value, up to one million dollars adjusted annually for inflation as the general assembly shall prescribe by law, of a homestead as prescribed by the General Assembly by law, and to provide that this exemption does not apply with respect to property tax imposed for payment of general obligation debt?

Yes   []
No   []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."   /
Renumber sections to conform.
Amend title to conform.

Rep. BALES explained the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 68; Nays 43

Those who voted in the affirmative are:

Altman                 Bailey                 Bannister
Barfield               Bingham                Brady
Cato                   Ceips                  Chalk
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan

Printed Page 779 . . . . . Wednesday, February 8, 2006

Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Hiott
Kirsh                  Leach                  Limehouse
Littlejohn             Lucas                  Mahaffey
Martin                 McGee                  Merrill
Norman                 Owens                  Perry
Pinson                 M. A. Pitts            Rice
Sandifer               Scarborough            Simrill
Sinclair               Skelton                D. C. Smith
G. M. Smith            G. R. Smith            J. R. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--68

Those who voted in the negative are:

Agnew                  Anthony                Bales
Ballentine             Battle                 Bowers
Branham                Breeland               G. Brown
R. Brown               Clyburn                Cobb-Hunter
Coleman                Emory                  Funderburk
Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Howard
Jefferson              Jennings               Kennedy
Mack                   McCraw                 McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Phillips
Rhoad                  Rivers                 Rutherford
Scott                  J. E. Smith            Vick
Weeks

Total--43

So, the amendment was tabled.


Printed Page 780 . . . . . Wednesday, February 8, 2006

Rep. JENNINGS moved that the House recede until 3:00 p.m.

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

Yeas 20; Nays 77

Those who voted in the affirmative are:

Agnew                  Battle                 Emory
Hayes                  J. Hines               Hodges
Howard                 Jennings               Miller
Moody-Lawrence         Ott                    Perry
Rhoad                  Rivers                 Rutherford
Scott                  J. E. Smith            Stewart
Vick                   Weeks

Total--20

Those who voted in the negative are:

Altman                 Anderson               Bailey
Bales                  Ballentine             Bannister
Barfield               Bingham                Bowers
Brady                  G. Brown               Ceips
Chellis                Clark                  Clemmons
Coates                 Coleman                Cooper
Cotty                  Dantzler               Davenport
Delleney               Duncan                 Edge
Frye                   Funderburk             Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Herbkersman
Hinson                 Hiott                  Huggins
Jefferson              Kennedy                Kirsh
Leach                  Limehouse              Loftis
Lucas                  Mahaffey               Martin
McGee                  Merrill                Neilson
Norman                 Owens                  Phillips
Pinson                 E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            Talley                 Taylor
Thompson               Toole                  Townsend

Printed Page 781 . . . . . Wednesday, February 8, 2006

Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--77

So, the House refused to recede.

Reps. J. E. SMITH, FUNDERBURK, GOVAN and RUTHERFORD proposed the following Amendment No. 7 (Doc Name COUNCIL\GJK\20813SD06), which was tabled:
Amend the joint resolution, as and if amended, in SECTION 3, by adding after /homestead / on line 2, page 3 /up to a fair market value of five million dollars /;
Amend the joint resolution further, as and if amended, in SECTION 4, by adding after /homestead / on line 15, page 3, / up to a fair market value of five million dollars /;
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 68; Nays 44

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Coates                 Cooper                 Cotty
Davenport              Delleney               Duncan
Frye                   Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Loftis

Printed Page 782 . . . . . Wednesday, February 8, 2006

Lucas                  Mahaffey               Martin
McGee                  Merrill                Norman
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Rice                   Sandifer
Scarborough            Simrill                Sinclair
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            Stewart
Talley                 Taylor                 Thompson
Toole                  Townsend               Tripp
Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--68

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Bowers                 Branham                Breeland
G. Brown               J. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Emory                  Funderburk             Govan
Hayes                  J. Hines               Hodges
Hosey                  Jefferson              Jennings
Kennedy                Mack                   McCraw
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Ott                    Parks
Phillips               Rhoad                  Rivers
Rutherford             Scott                  J. E. Smith
Vick                   Weeks

Total--44

So, the amendment was tabled.

Reps. J. E. SMITH, FUNDERBURK, GOVAN and RUTHERFORD proposed the following Amendment No. 8 (Doc Name COUNCIL\GJK\20814SD06), which was tabled:


Printed Page 783 . . . . . Wednesday, February 8, 2006

Amend the joint resolution, as and if amended, in SECTION 3, by adding after /homestead / on line 2, page 3 /up to a fair market value of ten million dollars /;
Amend the joint resolution further, as and if amended, in SECTION 4, by adding after /homestead / on line 15, page 3, / up to a fair market value of ten million dollars /;
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 74; Nays 41

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Coates                 Cooper
Cotty                  Dantzler               Davenport
Delleney               Duncan                 Edge
Frye                   Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Loftis
Lucas                  Mahaffey               Martin
McGee                  Merrill                Neilson
Norman                 Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson
Toole                  Townsend               Tripp
Umphlett               Vaughn                 Viers

Printed Page 784 . . . . . Wednesday, February 8, 2006

Walker                 White                  Whitmire
Witherspoon            Young

Total--74

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Bowers                 Branham                Breeland
G. Brown               R. Brown               Cobb-Hunter
Coleman                Emory                  Funderburk
Govan                  Hayes                  J. Hines
Hodges                 Hosey                  Howard
Jefferson              Jennings               Kennedy
Mack                   McLeod                 Miller
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Ott                    Parks
Phillips               Rhoad                  Rivers
Rutherford             Scott                  J. E. Smith
Vick                   Weeks

Total--41

So, the amendment was tabled.

POINT OF ORDER

Rep. J. E. SMITH raised the Point of Order that the Joint Resolution was out of order in that it was in violation of Article XVI, Section 1, of the South Carolina Constitution. He stated that the two constitutional amendments in the Joint Resolution had to be separate, and voted on separately, because Article XVI, Section 1, required "the amendment or amendments be entered on the journals respectively."
SPEAKER HARRELL stated that "entered on the journals respectively" refers to both the House and Senate Journals and requires the amendments and votes be placed in the respective House and Senate Journals. He stated further that the phrase did not require the House to vote on the amendments individually. He therefore overruled the Point of Order.

Rep. J. E. SMITH moved to divide the question.


Printed Page 785 . . . . . Wednesday, February 8, 2006

POINT OF ORDER

Rep. COOPER raised the Point of Order that the motion to divide the question on the resolution was out of order.
SPEAKER HARRELL sustained the Point of Order, and, pursuant to Rule 8.10, he ruled the motion out of order.

Pursuant to the provisions of the Constitution the yeas and nays were taken on the passage of the Joint Resolution, resulting as follows:

Yeas 102; Nays 17

Those who voted in the affirmative are:

Agnew                  Altman                 Anthony
Bailey                 Bales                  Ballentine
Bannister              Barfield               Battle
Bingham                Bowers                 Brady
Branham                G. Brown               J. Brown
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Coates                 Coleman
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Emory                  Frye
Funderburk             Govan                  Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Hayes                  Herbkersman            Hinson
Hiott                  Huggins                Jefferson
Jennings               Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  McLeod
Merrill                Miller                 Mitchell
Moody-Lawrence         J. M. Neal             Neilson
Norman                 Ott                    Owens
Perry                  Phillips               Pinson
E. H. Pitts            M. A. Pitts            Rhoad
Sandifer               Scarborough            Scott
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson

Printed Page 786 . . . . . Wednesday, February 8, 2006

Toole                  Townsend               Tripp
Umphlett               Vaughn                 Vick
Viers                  Walker                 White
Whitmire               Witherspoon            Young

Total--102

Those who voted in the negative are:

Anderson               Breeland               R. Brown
Cobb-Hunter            J. Hines               Hodges
Hosey                  Howard                 Kennedy
Mack                   J. H. Neal             Parks
Rice                   Rivers                 Rutherford
J. E. Smith            Weeks

Total--17

So, the Joint Resolution, having received the necessary two-thirds vote, was passed and ordered to third reading.

Rep. COTTY moved that the House recede until 3:30 p.m., which was agreed to.

THE HOUSE RESUMES

At 3:30 p.m. the House resumed, the SPEAKER in the Chair.

ACTING SPEAKER G. R. SMITH IN CHAIR

POINT OF QUORUM

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

SPEAKER IN CHAIR

H. 4449--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4449 (Word version) -- Reps. Cotty, Harrell, Merrill, Walker, Ballentine, Limehouse, E. H. Pitts, Haley, Clark, Townsend, Altman, Anthony, Bailey, Bingham, Bowers, Cato, Ceips, Chellis, Clyburn, Coleman, Cooper, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Hagood,


Printed Page 787 . . . . . Wednesday, February 8, 2006

Harrison, Haskins, Herbkersman, Hinson, Leach, Littlejohn, Loftis, Mahaffey, Martin, Phillips, Pinson, M. A. Pitts, Rhoad, Sandifer, Scarborough, F. N. Smith, G. M. Smith, J. R. Smith, Thompson, Toole, Tripp, Umphlett, Vaughn, White, Whitmire, Young, Bales, Lucas, Kirsh, Huggins, Brady, Hamilton, McGee and Stewart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-36-1110, 12-36-1120, AND 12-36-1130 SO AS TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE SALE OF UNPREPARED FOOD; TO ADD SECTION 11-11-155 SO AS TO CREATE THE HOMESTEAD EXEMPTION FUND AND RESERVE FUND; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, AND TO PROVIDE THAT THIS EXEMPTION WITH CERTAIN EXCEPTIONS DOES NOT APPLY WITH RESPECT TO PROPERTY TAX IMPOSED FOR PAYMENT OF GENERAL OBLIGATION DEBT; TO ADD SECTION 12-37-932 SO AS TO PROVIDE THAT THE FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF THE PROPERTY TAX IS ITS FAIR MARKET VALUE AS APPRAISED IN THE MANNER PROVIDED BY LAW WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS MADE TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, TO PROVIDE THAT ON THE FIRST DAY OF JANUARY IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF THIS PROVISION THE DUTIES, POWERS, AND FUNCTIONS OF LOCAL COUNTY PROPERTY TAX ASSESSORS ARE TRANSFERRED TO AND DEVOLVED UPON THE PROPERTY TAX DIVISION OF THE STATE DEPARTMENT OF REVENUE, TO PROVIDE THAT THE SALES TAX EXEMPTIONS IN SECTION 12-36-2120 SHALL BE REVIEWED BY THE GENERAL ASSEMBLY EVERY TEN YEARS BEGINNING IN 2010; TO AMEND SECTIONS 11-11-150, 12-43-210, AND 12-43-220, ALL AS AMENDED, RELATING TO THE TRUST FUND FOR TAX RELIEF, REASSESSMENT AND THE VALUATION AND CLASSIFICATION OF PROPERTY FOR

Printed Page 788 . . . . . Wednesday, February 8, 2006

PURPOSES OF THE PROPERTY TAX, SO AS TO MAKE CONFORMING AMENDMENTS AND OTHER CHANGES TO REFLECT THESE PROVISIONS; TO AMEND ACT 406 OF 2000, RELATING TO, AMONG OTHER THINGS, THE HOMESTEAD EXEMPTION, SO AS TO DELETE AN OBSOLETE PROVISION; TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX; TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE INCLUDING SCHOOL DISTRICTS TO REIMBURSE THEM FOR THE REVENUE LOST AS A RESULT OF THE PROPERTY TAX EXEMPTIONS; TO PROVIDE THAT LOCAL SALES TAX AND LOCAL OPTION SALES TAX REVENUES PROVIDING PROPERTY TAX RELIEF TO OWNER-OCCUPIED RESIDENTIAL PROPERTY SHALL BE APPLIED FOR PROPERTY TAX RELIEF TO OTHER CLASSES OF PROPERTY; TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, AND TO PROVIDE FOR A SUPERMAJORITY VOTE OF THE GOVERNING BODY OF THE ENTITY TO EXCEED THIS LIMITATION; TO PROVIDE THAT ALL OF THE ABOVE PROVISIONS ARE CONTINGENT UPON RATIFICATION OF CERTAIN CONSTITUTIONAL AMENDMENTS TO ARTICLE X OF THE STATE CONSTITUTION PROVIDING FOR AN ADDITIONAL HOMESTEAD PROPERTY TAX EXEMPTION, DETERMINATION OF FAIR MARKET VALUE OF PROPERTY, AND RELATED MATTERS; TO AMEND SECTIONS 11-27-30, 11-27-40, AND 11-27-50, ALL AS AMENDED, RELATING TO THE EFFECT OF ARTICLE X OF THE SOUTH CAROLINA CONSTITUTION ON BONDS OF THE STATE, POLITICAL SUBDIVISIONS OF THE STATE, AND SCHOOL DISTRICTS, RESPECTIVELY, SO AS TO DEEM AFTER JULY 1, 2006, A COMPLETE OR PARTIAL SUCCESSOR-IN-INTEREST TO, OR OTHER TRANSFEREE OF, OR OTHER ASSOCIATE OF THE STATE, A POLITICAL SUBDIVISION, OR A SCHOOL DISTRICT TO BE THE STATE, POLITICAL SUBDIVISION, OR SCHOOL DISTRICT FOR BONDING PURPOSES WHEN THE SUCCESSOR, TRANSFEREE, OR ASSOCIATE UNDERTAKES ALL OR A

Printed Page 789 . . . . . Wednesday, February 8, 2006

PORTION OF THE OPERATION OR ASSUMES ALL OR A PORTION OF A DUTY OF THE STATE, POLITICAL SUBDIVISION, OR SCHOOL DISTRICT; TO AMEND SECTION 12-37-670, RELATING TO LISTING AND ASSESSMENT OF NEW STRUCTURES FOR PROPERTY TAX PURPOSES, SO AS TO AUTHORIZE A COUNTY GOVERNING BODY BY ORDINANCE TO REQUIRE THAT A NEW STRUCTURE BE LISTED BY THE FIRST DAY OF THE MONTH AFTER THE CERTIFICATE OF OCCUPANCY IS ISSUED FOR THE STRUCTURE AND TO PROVIDE FOR THE TIMING OF PAYMENT OF TAXES DUE; TO REPEAL SECTION 12-37-680 RELATING TO A LOCAL COUNTY ORDINANCE ADOPTING THE SAME RULE; TO AMEND SECTION 12-43-215, RELATING TO OWNER-OCCUPIED RESIDENTIAL PROPERTY IN CONNECTION WITH AD VALOREM PROPERTY TAXATION, SO AS TO REQUIRE EACH COUNTY TO SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT OF REVENUE LISTING THE NAMES AND ADDRESSES OF ALL PROPERTY CLASSIFIED AS "OWNER-OCCUPIED"; TO ADD SECTION 59-20-21 SO AS TO PROVIDE THAT BEGINNING WITH THE YEAR 2006, THE STATE BOARD OF EDUCATION, IN DETERMINING THE MINIMUM EDUCATION PROGRAM DESIGNED TO MEET STUDENTS' NEEDS, MAY ONLY CONSIDER FACTORS REQUIRED BY STATUTORY LAW OR WHICH DIRECTLY AFFECT CLASSROOM LEARNING, AND THE LOCAL MAINTENANCE OF EFFORT REQUIRED OF A SCHOOL DISTRICT MUST BE BASED ON THESE DETERMINATIONS; TO ADD SECTION 59-20-22 SO AS TO PROVIDE THAT NOTWITHSTANDING A SCHOOL DISTRICT'S INDEX OF TAXPAYING ABILITY, THE MINIMUM STATE FUNDS A SCHOOL DISTRICT SHALL RECEIVE IN ANY YEAR IS FORTY PERCENT OF THE APPLICABLE YEAR'S BASE STUDENT COST, AND TO PROVIDE FOR THE MANNER IN WHICH ALL OF THESE PROVISIONS SHALL TAKE EFFECT OR BE REPEALED.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GJK\20777SD06), which was adopted:
Amend the bill, as and if amended, in Section 12-36-1110 of the 1976 Code, as contained in SECTION 1, Part I, by striking /July/ on


Printed Page 790 . . . . . Wednesday, February 8, 2006

line 19, page 4, and inserting /June/. When amended Section 12-36-1110 shall read:

"Section 12-36-1110.   Beginning on the first day of June of the year in which this section takes effect, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, except that this additional two percent tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients, nor does this additional tax apply to items subject to a maximum sales and use tax pursuant to Section 12-36-2110."
Amend the bill further, as and if amended, in subsection B., SECTION 1, Part I, by striking /June thirtieth / on line 43, page 4, and inserting / May thirty-first / and by striking / July / on line 4, page 5, and inserting / June /. When amended subsection B. shall read:
"B.   Section 12-36-2120 of the 1976 Code, as last amended by Act 164 of 2005, is further amended by adding an appropriately numbered item at the end to read:

"( )   unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons, but this exemption does not apply to any local sales and use tax imposed or enacted before May thirty-first of the year in which this item takes effect that is administered by the Department of Revenue which does not contain a specific exemption with respect to food items but does apply to any local sales and use tax imposed or enacted on or after June first of the year in which this item takes effect."
Amend further, as and if amended, in subsection (B), SECTION 2, Part II, by striking /July/ on line 37, page 10, and inserting /June /. When amended, subsection (B) shall read:

"(B)   Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes imposed on owner-occupied residential property, must be thereafter applied on a pro-rata basis to reduce ad valorem property taxes on all other classes of property."
Amend the bill further , as and if amended, by striking item (1) of Section 11-11-155 of the 1976 Code, as contained in SECTION 2, Part I, which begins on line 14, page 5, and inserting:
/   (1)   For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in


Printed Page 791 . . . . . Wednesday, February 8, 2006

fiscal year 2005-2006 is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund. /
Amend the bill further, as and if amended, in subsection E. of SECTION 5, beginning on line 4, page 9, by adding /12-37-251,/ immediately before /12-37-270/. When amended subsection E. shall read:
"E.   Sections 12-37-251, 12-37-270, 12-43-217, 12-43-250, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed."
Amend the bill further, as and if amended, by striking SECTION 6, Part I, which begins on line 9, page 9, and inserting:
/SECTION   6.   Assessors and other staff responsible for the assessment of property for ad valorem taxation purposes are required to receive nine hours of instruction each year in the laws applicable to assessment for ad valorem taxation, methods of valuating property, administration of the assessor's office and records of the assessor's office, and other functions related to the assessor's office. This instruction must be received from the Department of Revenue or other providers or courses approved by the Department of Revenue./
Striking SECTION 1, Part II, which begins on line 24, page 9, and inserting:
/SECTION   1.   (A)(1)   For the period January through December 2007, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed pursuant to the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act during that period dollar for dollar. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.

(2)   Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item.


Printed Page 792 . . . . . Wednesday, February 8, 2006

The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007.

(B)(1)   For the period January through December 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed pursuant to the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act during that period dollar for dollar. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the school district.

(2)   Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increases of the several school districts as provided in subsection (C) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007.

(C)   Beginning with the 2008 reimbursements to all property taxing entities of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the


Printed Page 793 . . . . . Wednesday, February 8, 2006

population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Distribution of these reimbursement increases shall be as provided in subsections (A) and (B) of this section.

(D)   The percentage of population growth in any year for any property taxing entity entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the property taxing entity is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the property taxing entity encompasses areas in more than one county, the population growth in that entity shall be the average of the growth in each county weighted to reflect the existing population of the property taxing entity in that county as compared to the existing population of the property taxing entity as a whole. /
Amend the bill further, as and if amended, by striking subsection (A), SECTION 2, Part II, which begins on line 28, page 10, in its entirety.
By striking subsection (B) of Section 4-9-56 of the 1976 Code, as contained in SECTION 4, which begins on line 22, page 11, and inserting:
/   (B)   Beginning with the year 2007, a property taxing entity of this State including a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the entity entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the entity. Seventy-five percent of the total membership of the governing body of the entity must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total. /
Renumber sections and subsections to conform.
Amend title to conform.

The amendment was then adopted.


Printed Page 794 . . . . . Wednesday, February 8, 2006

Rep. SKELTON proposed the following Amendment No. 2 (Doc Name COUNCIL\BBM\9205HTC06), which was tabled:
Amend the bill, as and if amended, in Part I, by striking SECTION 3 and inserting:
/ SECTION   3.   A.   Section 12-37-220(B) of the 1976 Code, as amended by Act 161 of 2005, is further amended by adding a new item at the end appropriately numbered to read:

"( )(a)   Beginning with the year in which this item takes effect and to the extent not already exempt pursuant to Section 12-37-250, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for schools other than the repayment of a school district's general obligation debt.

(b)   Notwithstanding any other provision of law, property exempted from property tax in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Section 15 of Article X of the Constitution of this State."
B.   The first paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:

"All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property."
C.   Section 12-43-220(e) of the 1976 Code is amended to read:

"(e)   All other real property not herein provided for shall be taxed on an assessment equal to six five percent of the fair market value of such property." /
Amend further, Part II, by striking subsection A of SECTION 1 and inserting:

/ (A)(1)   For the period January through December 2007, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the reduction in the assessment ratios made pursuant to Section 12-43-220(a) and (e) of the 1976 Code during that period dollar for dollar. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the property taxing entity.

(2)   Beginning January 1, 2008, property taxing entities of the State other than school districts must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the


Printed Page 795 . . . . . Wednesday, February 8, 2006

reduction in the assessment ratios made pursuant to Section 12-43-220(a) and (e) of the 1976 Code in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the property taxing entity and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (C). The reimbursement increase of a property taxing entity other than a school district as provided in subsection (C) for any year stated as a percentage shall be multiplied by the entity's reimbursement amount for the previous year to determine the total distribution to the entity for the year. No such property taxing entity shall receive less in reimbursements beginning in 2008 than it received in 2007. /
Renumber sections to conform.
Amend title to conform.

Rep. SKELTON explained the amendment.
Rep. SKELTON spoke in favor of the amendment.

Rep. COTTY moved to table the amendment.

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

Yeas 61; Nays 47

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Frye                   Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Hinson
Huggins                Leach                  Limehouse
Littlejohn             Lucas                  Mahaffey
Martin                 McGee                  Merrill
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Sandifer               Scarborough
Sinclair               G. M. Smith            J. R. Smith
W. D. Smith            Stewart                Talley

Printed Page 796 . . . . . Wednesday, February 8, 2006

Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Vick                   Walker
White                  Whitmire               Witherspoon
Young

Total--61

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                Breeland               G. Brown
J. Brown               Chalk                  Clyburn
Cobb-Hunter            Emory                  Funderburk
Govan                  Hagood                 Hayes
Hiott                  Hodges                 Hosey
Jefferson              Jennings               Kennedy
Kirsh                  Mack                   McCraw
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Norman                 Ott
Owens                  Rhoad                  Rice
Rivers                 Scott                  Simrill
Skelton                D. C. Smith            G. R. Smith
J. E. Smith            Weeks

Total--47

So, the amendment was tabled.

Rep. COTTY proposed the following Amendment No. 5 (Doc Name COUNCIL\GJK\20825SD06):
Amend the bill, as and if amended, in Part I, SECTION 5, subsection E. by striking /12-43-250,/ as contained on line one of the subsection;
Amend the bill further, as and if amended, in item 1, subsection (A), SECTION 1, Part II, by striking the first sentence of item 1 and inserting:
/For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from


Printed Page 797 . . . . . Wednesday, February 8, 2006

owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt./
Amend the bill further, as and if amended, by striking subsection (B) of SECTION 2, Part II, in its entirety.
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.

LEAVE OF ABSENCE

The SPEAKER granted Rep. J. BROWN a temporary leave of absence.

Rep. COTTY continued speaking.

Rep. COTTY moved to adjourn debate on the amendment, which was agreed to.

Reps. HARRELL, MERRILL, COTTY, HINSON, COOPER and OTT proposed the following Amendment No. 6 (Doc Name COUNCIL\GJK\ 20830HTC06), which was adopted:
Amend the bill, as and if amended, in SECTION 1(B)(2), Part II, by adding at the end:

/For purposes of the reimbursement increases school districts receive under this item based on weighted pupil units determined pursuant to the Education Finance Act, an additional add-on weighting for students in poverty of 0.20 shall be included in the weightings provided in Section 59-20-40(1)(c) of the 1976 Code. The weighting for poverty shall provide additional revenues for students in kindergarten through grade twelve who qualify for Medicaid or who qualify for reduced or free lunches, or both. Revenues generated by this weighting must be used by districts and schools to provide services and research-based strategies for addressing academic or health needs of these students to ensure their future academic success, to provide summer school, reduced class size, after school programs, extended day, instructional materials, or any other research-based educational strategy to improve student academic performance.   /
Renumber sections to conform.
Amend title to conform.


Printed Page 798 . . . . . Wednesday, February 8, 2006

Rep. COOPER explained the amendment.
The amendment was then adopted.

Reps. HARRELL, MERRILL, COTTY and HINSON proposed the following Amendment No. 7 (Doc Name COUNCIL\GGS\ 22412HTC06):
Amend the bill, as and if amended, Part I, SECTION 1, by striking subsection B. and inserting:
/ B.   1.   Section 12-36-910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding a new subsection at the end to read:

"(D)(1)   Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is three percent.

(2)   Notwithstanding any other provision of law providing for the use of sales and use tax revenues, an amount equal to twenty percent of the revenue of the sales and use tax imposed pursuant to this subsection, as estimated by the Board of Economic Advisors, must be credited to the Education Improvement Act Fund as provided in Section 59-21-1010(B)."

2.   Section 12-36-910 of the 1976 Code, as amended by subsection B. of this SECTION, takes effect on the day that the tax imposed pursuant to subsection A. of this SECTION takes effect. /
Amend further, in Part I, by adding a new SECTION at the end appropriately numbered to read:
/ SECTION   __.   A.   1.   The first paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:

"(a)   All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property."

2.   Section 12-43-220(e) of the 1976 Code is amended to read:

"(e)   All other real property not herein provided for shall be taxed on an assessment equal to six 5.7 percent of the fair market value of such property."

3.   The amendment to the assessment ratios in items (a) and (e) of Section 12-43-220 of the 1976 Code in this subsection are made pursuant to SECTION 2(d), Article X of the Constitution of this State.


Printed Page 799 . . . . . Wednesday, February 8, 2006

B.   1.   Section 4-29-67(D)(2)(a)(i) of the 1976 Code is amended to read:

"(i)   an assessment ratio of at least six 5.4 percent, or four 3.6 percent for those projects qualifying pursuant to subsection (D)(4);"

2.   That portion of Section 4-29-67(D)(4) preceding (i) is amended to read:

"The assessment ratio may not be lower than four 3.6 percent:"
C.   Section 12-44-50(A)(1)(a) of the 1976 Code is amended to read:

"(a)   an assessment ratio of not less than six 5.4 percent, or four 3.6 percent for those projects qualifying under the enhanced investment definition:"
D.   The amendments in this section to the assessment ratios in Sections 12-44-50 and 4-29-67 of the 1976 Code apply both prospectively and retroactively. Fee agreements entered into before the effective date of this act pursuant to the provisions of Sections 12-44-50 and 4-29-67 of the 1976 Code must be amended to effect a ten percent reduction in the applicable assessment ratio. /
Renumber sections to conform.
Amend title to conform.

Rep. MERRILL moved to adjourn debate on the amendment, which was agreed to.

Reps. HARRELL, MERRILL, COTTY and HINSON proposed the following Amendment No. 8 (Doc Name COUNCIL\GJK\ 20828HTC06), which was adopted:
Amend the bill, as and if amended, in Section 12-37-932 as contained in SECTION 4, Part I, by adding a new subsection at the end of Section 12-37-932 to read:

/ (D)   Nothing in this section diminishes the right of a taxpayer aggrieved by the fair market value of the taxpayer's real property determined in the manner provided in this section or as otherwise determined by law to appeal that value pursuant to Section 12-60-2110 or 12-60-2510(A)(4) and have a value as determined on appeal substituted for that value. /
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.
The amendment was then adopted.


Printed Page 800 . . . . . Wednesday, February 8, 2006

Reps. HARRELL, MERRILL, COTTY and HINSON proposed the following Amendment No. 9 (Doc Name COUNCIL\GJK\ 20829HTC06), which was adopted:
Amend the bill, as and if amended, in Part I, by adding a new SECTION at the end appropriately numbered to read:
/ SECTION   __.   A.   1.   Section 4-12-30(D)(2)(a)(i) and (ii) is amended to read:

"(i)   for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, if real property is constructed for the fee or is purchased in an arm's length transaction; otherwise, the property must be reported at its fair market value for ad valorem property tax purposes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee; and

(ii)   for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to any extraordinary obsolescence."

2.   Section 4-12-30(E) of the 1976 Code is amended to read:

"(E)   Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)."
B.   Items (1) and (2) of Section 12-44-50(A) of the 1976 Code are amended to read:

"(1)   During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:

(a)   an assessment ratio of not less than six percent, or four percent for those projects qualifying under the enhanced investment definition;

(b)   a millage rate that is, either:

(i)     fixed for the life of the fee; or

(ii)   is allowed to increase or decrease every fifth year in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and


Printed Page 801 . . . . . Wednesday, February 8, 2006

(c)   a fair market value for the economic development property:

(i)     if real property is constructed for the fee or is purchased in an arm's length transaction, the fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, otherwise the property must be reported at its fair market value for ad valorem property taxes as determined by appraisal. The fair market value estimate established for the first year of the fee remains the fair market value of the real property for the life of the fee;

(ii)   fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the sponsor is not entitled to extraordinary obsolescence; and

(d)   to establish the millage rate for purposes of subsection (A)(1)(b)(i) or the first five years millage under (A)(1)(b)(ii), the millage rate must be no lower than the cumulative property tax millage rate levied by, or on behalf of, all taxing entities within which the project is located on either:

(i)     June thirtieth of the year preceding the calendar year in which the fee agreement is executed; or

(ii)   the millage rate in effect on June thirtieth of the calendar year in which the fee agreement is executed.

(2)   The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34)." /
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.
The amendment was then adopted.

Rep. CLYBURN proposed the following Amendment No. 10 (Doc Name COUNCIL\GJK\20801SD06), which was ruled out of order:
Amend the bill, as and if amended, by adding a new SECTION to be appropriately numbered in Part IV to read:
/SECTION   ____.   The Constitutional Ballot Commission shall review the language of the proposed amendments to the constitution referred to in Section 1 of this part along with the proposed amendment


Printed Page 802 . . . . . Wednesday, February 8, 2006

questions to be placed on the ballot. It shall then ensure that the explanation of the questions it prepares to be included on the ballot are written at an eight grade reading level to allow all segments of the population the ability to understand what they are voting on."   /
Renumber sections to conform.
Amend title to conform.

Rep. CLYBURN explained the amendment.

POINT OF ORDER

Rep. ALTMAN raised the Point of Order that Amendment No. 10 was out of order in that it was not germane to the Bill.
SPEAKER HARRELL sustained the Point of Order and ruled the amendment out of order.

Rep. RICE proposed the following Amendment No. 11 (Doc Name COUNCIL\GGS\22405SJ06), which was tabled:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:

Part I

/SECTION   1.   A.   Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Article 11
Additional Sales, Use, and Casual Excise Tax

Section 12-36-1110.   Beginning on the first day of June of the year in which this section takes effect, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, and this additional two percent tax also applies to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients, and to items subject to a maximum sales and use tax pursuant to Section 12-36-2110.

Section 12-36-1120.   The revenue of the tax imposed by this article must be credited to the Residential Property Tax Relief Trust Fund established pursuant to Section 12-37-253.

Section 12-36-1130.   The Department of Revenue may prescribe amounts that may be added to the sales price to reflect the additional tax imposed pursuant to this article."
B.   Section 12-36-2120 of the 1976 Code, as last amended by Act 164 of 2005, is further amended by adding an appropriately numbered item at the end to read:


Printed Page 803 . . . . . Wednesday, February 8, 2006

"( )   unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons, but this exemption does not apply to any local sales and use tax imposed or enacted before May thirty-first of the year in which this item takes effect that is administered by the Department of Revenue which does not contain a specific exemption with respect to food items but does apply to any local sales and use tax imposed or enacted on or after June first of the year in which this item takes effect."
C.   The provisions of Section 4-10-350(F) and (G) of the 1976 Code apply mutatis mutandis with respect to the tax imposed pursuant to Article 11, Chapter 36, Title 12 of the 1976 Code as added by this section.
SECTION   2.   Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253.   (A)   In addition to the exemptions allowed pursuant to Sections 12-37-250 and 12-37-251, residents of this State owning residential real property assessed at either a four percent or six percent assessment ratio shall receive a tax credit against ad valorem property taxes on which this property except for property taxes imposed for the payment of general obligation debt in an amount provided in this section. Beginning with calendar year 2007, the Board of Economic Advisors by February fifteenth of each year shall estimate the revenues that will be deposited into the Residential Property Tax Relief Trust Fund for that calendar year from the additional two percent sales and use tax imposed pursuant to Section 12-36-1110 and also will estimate the total amount of property tax collections by all property taxing entities of this State for that year from taxes imposed against residential real property owned by state residents exclusive of debt service for general obligation debt. The board shall then divide the amount of revenue projected to be collected by the Trust Fund by the total amount of the projected property tax collections and compute the result stated as a percentage. Each resident of this State owning residential real property to which this section applies shall then receive a credit on his property tax bill for that year against the property taxes imposed on this property exclusive of general obligation debt service equal to the percentage computed by the board multiplied by the amount of his tax bill.

(B)(1)   For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110 is automatically credited to a fund separate and distinct from the state general fund known as the Residential Property Tax


Printed Page 804 . . . . . Wednesday, February 8, 2006

Relief Trust Fund. The Board of Economic Advisors shall account for the Residential Property Tax Relief Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues are credited to the Education Improvement Act (EIA) Fund;

(2)   An unexpended balance in the Trust Fund at the end of a fiscal year must remain in the Fund;

(3)   Earnings on the Trust Fund must be credited to the Trust Fund;

(4)   Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Trust Fund.

(C)   The Comptroller General on or after January 1, 2008, shall reimburse all property taxing entities of this State for the revenue lost as a result of the property tax credits provided by this section in the same manner and under the same terms and conditions reimbursements are made to the property taxing entities of this State under Section 12-37-270 for the Homestead Exemption provided that no reimbursements for general obligation debt service may be made."
SECTION   3.   This Part takes effect upon approval by the Governor.

Part II

SECTION   1.   Chapter 17, Title 59 of the 1976 Code is amended to read:

School Districts

Section 59-17-10.   Every school district is and shall be a body politic and corporate, by the name and style of __________ (a descriptive name may be designated by the county board of education or legislative act) School District No __________ (such number may be designated by the county board of education or legislative act), of __________ County (the name of the county in which the district is situated), the State of South Carolina. In that name it may sue and be sued and be capable of contracting and being contracted with to the extent of its school fund and holding such real and personal estate as it may have or come into possession of, by will or otherwise, or as is authorized by law to be purchased, all of which shall be used exclusively for school purposes.

Section 59-17-20.   Unless otherwise expressly provided, the school districts of the various counties shall not be altered or divided except:

(1)   By act of the General Assembly relating to one or more counties; or


Printed Page 805 . . . . . Wednesday, February 8, 2006

(2)   By authorization of the county boards of education under the following conditions:

(a)   With the written approval of the Senator and the entire house legislative delegation from the county involved;

(b)   Upon a written petition, signed by at least four fifths of the qualified electors embraced within the limits of each of the school districts involved, which shall state plainly to the county board of education the action petitioned and shall also bear the signed certificate of the members of the county board of registration that the number of electors who signed the petition represent at least four fifths of the qualified electors embraced within the limits of each of the school districts involved; or

(c)   Upon the written petition, signed by at least one third of the qualified electors embraced within the limits of each of the school districts involved, which shall state primarily the action petitioned and shall bear the signed certificate of the members of the county board of registration that the number of the electors who signed the petition represent at least one third of the qualified electors embraced within the limits of each of the school districts involved; if such consolidation be approved favorably by a majority of the qualified electors of each of the school districts involved at an election called by the county board of education for the purpose.

Section 59-17-30.   When any school district laid out under Section 59-17-20 shall embrace cities or towns already organized into special school districts in which graded school buildings have been erected by the issue of bonds, by special taxation or by donation, all the territory included in such school district shall bear its just proportion of any tax that may be levied to liquidate such bonds or support the public schools therein.

Section 59-17-40.   All of the school districts of any county may be consolidated into a single school district embracing the entire county in the manner provided by Section 59-17-20 for the alteration or division of school districts, and, whenever territory embraced in two or more counties is proposed to be formed into one school district, such district may be formed by the joint action of the boards of education of the respective counties as provided in Section 59-17-20 for the formation of school districts in a county.

Section 59-17-50.   A county board of education may consolidate schools and school districts, in whole or in part, whenever, in its judgment, such consolidation will promote the best interests of the cause of education in the county.


Printed Page 806 . . . . . Wednesday, February 8, 2006

Section 59-17-60.   When two or more districts are consolidated under the provisions of Section 59-17-50, the county board of education shall file a copy of the order of consolidation in the office of the clerk of court and with the State Board of Education. Such filing shall complete the consolidation of such districts for all intents and purposes.

Section 59-17-70.   Upon consolidation of any two or more school districts, all property, real and personal, and all assets of the districts forming the consolidated school district shall become the property of the consolidated district and all liabilities of the consolidating districts shall become the obligations of such consolidated district. Each such consolidated district shall be a body politic and corporate and its board of trustees shall have such powers as are provided by law.

Section 59-17-80.   Any school district formed of parts of two or more counties under the provisions of Section 59-17-40 may be dissolved in the same manner as that by which it may have been formed, as provided in said section.

Section 59-17-90.   Any two or more school districts in this State may agree to provide special services, make purchases, share equipment, develop curriculum, and interchange pupils or educational services.

Section 59-17-100.   Notwithstanding any other provision of law, each school district of the State shall provide the State Department of Education each year with two copies of its audit report by December first following the close of the fiscal year.

Section 59-17-110.   In the event that any employee of any school district in South Carolina is prosecuted in any action, civil or criminal, or special proceeding in the courts of this State, or of the United States, by reason of any act done or omitted in good faith in the course of his employment, it is made the duty of the school district, when requested in writing by any such public school employee, to appear and defend the action or proceeding in his behalf.

Section 59-17-120.   Bonds issued by a school district under the bonded indebtedness limitation of Article X, Section 15(7)(a) of the South Carolina Constitution and called before the maturity date only may be reissued if the amount required to service the reissuance and to pay off the called bonds does not:

(1)   increase by more than eight percent in any one year the amount of the district's budget needed to service the original bonded indebtedness; or

(2)   exceed the debt limit of the district.


Printed Page 807 . . . . . Wednesday, February 8, 2006

Section 59-17-130.   (A)   The board of trustees of a school district may grant credit as an elective to a pupil who satisfactorily has completed a high school course in American Sign Language.

(B)   The State Board of Education shall establish guidelines on the qualifications needed for those teaching an American Sign Language course and on a recommended course of study to be followed.

(C)   The State Board of Education shall establish a task force to assist in the development of the guidelines pursuant to this section. The task force shall consist of nine members as follows:

(1)   The President of the South Carolina Association of the Deaf, or his designee;

(2)   A parent of a deaf child in a mainstreamed program;

(3)   A parent of a deaf child in a residential program who is currently enrolled at the South Carolina School for the Deaf and Blind;

(4)   A representative from the foreign language department of a college or university in South Carolina;

(5)   The Director of the Interpreter Training Program of Spartanburg Technical College, or his designee;

(6)   A representative from the South Carolina School for the Deaf and Blind;

(7)   Two instructors of American Sign Language, one of whom must be deaf;

(8)   A representative from the State Department of Education.

The task force shall be established within three months of the effective date of this act and shall terminate upon completion of the guidelines. The State Department of Education shall provide the necessary administrative and research support for the task force. Members of the task force shall serve without compensation.

Section 59-17-135.   (A)   The General Assembly finds:

(1)   the schools of South Carolina must provide the safest environment possible for students to learn;

(2)   teaching positive character traits is essential to improving the learning environment, promoting student achievement, reducing disciplinary problems, and developing civic-minded students;

(3)   schools must be encouraged to instill the highest character and academic excellence in each student, in close cooperation with the student's parents; and

(4)   elected officials, community and civic leaders, business leaders, religious institutions, youth organizations, government, media, and citizens-at-large must be encouraged to become actively involved


Printed Page 808 . . . . . Wednesday, February 8, 2006

in creating an atmosphere which encourages positive character development through every sector of the community.

(B)   Each local school board of trustees of the State must develop a policy addressing character education. Any character education program implemented by a district as a result of an adopted policy must, to the extent possible, incorporate character traits including, but not limited to, the following: respect for others, honesty, self-control, cleanliness, courtesy, good manners, cooperation, citizenship, patriotism, courage, fairness, kindness, self-respect, compassion, diligence, generosity, punctuality, cheerfulness, patience, sportsmanship, loyalty, and virtue. Local school boards must include all sectors of the community, as referenced in subsection (A)(4), in the development of a policy and in the development of any program implemented as a result of the policy. As part of any policy and program developed by the local school board, an evaluation component must be included.

(C)   Beginning with the 2000-2001 school year, each school district board of trustees is encouraged to require students in the public schools under the jurisdiction of the board to exhibit appropriate conduct, as required in subsection (D) of this section.

(D)   When a public school student is speaking with a public school employee while on school property or at a school sponsored event, the student may be encouraged to address and respond to the public school employee by using terms indicative of or reflecting courtesy and respect for a public school's employees position of authority including, but not limited to, sir, ma'am, thank you, and please.

(E)   Each school district board of trustees is encouraged to provide for incorporation of the requirements of subsections (C) and (D) into any existing discipline policy or policies or any code of conduct of the school district or of each school within its jurisdiction.

(F)   No school board may provide suspension or expulsion from school as an appropriate punishment for violation of subsection (D).

(G)   Upon request, the State Department of Education must provide to the school districts of the State information on currently available programs, curriculums, and resources. In addition, the State Department of Education must provide to the school districts of the State information on best practices and successful programs currently being implemented.

Section 59-17-140.   (A)   Effective July 1, 2001, each school district during annual in-service training shall provide a program of


Printed Page 809 . . . . . Wednesday, February 8, 2006

instruction for teachers and administrators in the essentials of constitutional protections and prohibitions as they relate to religion and public school operations. Subjects shall include, but not be limited to:

(1)   student prayers;

(2)   graduation prayers and baccalaureates;

(3)   participation in or encouragement of religious activity by school officials;

(4)   religion in school curriculum;

(5)   religious content in student assignments;

(6)   distribution and use of religious literature;

(7)   student participation in religious events before and after school;

(8)   religious persuasion versus religious harassment;

(9)   religious holidays;

(10)   permitted absences from objectionable lessons in religion;

(11)   released time for religious instruction;

(12)   teaching values;

(13)   religious attire;

(14)   Federal Equal Access Act;

(15)   Federal Religious Freedom Restoration Act;

(16)   South Carolina Religious Freedom Act;

(17)   other statutory and constitutional provisions regarding the establishment of religion and free exercise thereof, as they relate to a public school context;

(18)   instruction on how to access legal advice concerning the establishment of religion and free exercise thereof in a public school context; and

(19)   instruction on how to access the State Department of Education's guidelines on religion and the public schools on the department's website.

(B)   Once a teacher or administrator has completed the program of instruction contained in this section, it is not necessary that they participate in the same program of instruction on an annual basis. However, such teachers and administrators who have completed the program of instruction shall annually participate in instruction regarding updates and new developments in the subject matter contained in this section.

Section 59-17-150.   (A)   Municipal and county governing bodies shall work with school districts located in their jurisdictions to identify barriers and hazards to children walking or bicycling to and from school. The municipalities, counties, and districts may develop a plan


Printed Page 810 . . . . . Wednesday, February 8, 2006

for the funding of improvements designed to reduce the barriers and hazards identified. The sources of these funds may include federal funding or grants, state funding, or funding from private sources. Nothing in this section shall obligate any agency of federal, state, or local government to provide funding for identified improvements.

(B)   Each school district in this State may establish a Safe Routes to School District Coordinating Committee. The coordinating committee shall include parents, children, teachers, administrators, local law enforcement officials, public health officials, interested citizens, and other persons familiar with the transportation needs of the school district. Duties of the coordinating committee may include gathering information about the schools in the district through surveys and traffic counts; organizing incentive-based events and contests to encourage students to try new modes of transportation; and promoting the program through school newsletters, assemblies, web sites, and other means to reach parents and students.

Any school within the district may establish a Safe Routes to School Team. The team shall include parents, children, teachers, administrators, and neighbors of the school. The team may be expanded to include local law enforcement officials, public health officials, and other persons familiar with the transportation needs of the school. The team shall select a representative to serve on the District Coordinating Committee. Duties of the team may include gathering information about their school through surveys and traffic counts; organizing incentive-based events and contests to encourage students to try new modes of transportation; and promoting the program through school newsletters and other means to reach parents and students.

(C)   The first Wednesday of October of each year is designated as 'Walk or Bicycle with Your Child to School Day' in each school district of this State to promote walking or riding bicycles to school by students, with escorts if necessary, and to identify needed improvements such as sidewalks or safer pedestrian routes not open to vehicular traffic.
"The South Carolina School District

Section 59-17-210.   (A)   The South Carolina School District is created as a body politic and corporate. The South Carolina School District must be considered a local education agency and is eligible to receive federal and other grants available for charter and other schools.

(B)   The geographical boundaries of the South Carolina School District are the same as the boundaries of the State of South Carolina.


Printed Page 811 . . . . . Wednesday, February 8, 2006

(C)   As used in this chapter, 'district' means the South Carolina School District.

Section 59-17-220.   The South Carolina School District must be governed by a state board of trustees consisting of one member from each of the forty local councils and the State Superintendent of Education who must be appointed by the Governor.

Section 59-17-230.   The state board of trustees for the South Carolina School District shall establish:

(1)   the overall budget for the school district;

(2)   the basic statewide standards and curriculum and monitor them to determine necessary changes;

(3)   a compensation scale and hiring standards for teachers;

(4)   a uniform school starting date and teacher work days; and

(5)   focus committees to monitor certain areas of the district.

Section 59-17-240.   (A)   The State must be divided into forty local council districts, each to serve an approximately equal number of students with at least fifteen thousand students in each district. Each local council district must be governed by seven members, one elected from each of the seven areas of that local council district. An employee of the State Board of Education, the South Carolina School District, a local council district, or a state educational institution must not be elected to a local council. The seven members of each local council shall elect a chairperson from among their membership. Each chairperson shall represent the local council on the state board of trustees.

(B)   Each local council shall:

(1)   establish needs of the local council district and make recommendations to the state board of trustees; and

(2)   oversee the local council district.

(C)   Each local council may appeal for variances to the state board of trustees regarding uniform decisions made by the state board of trustees.

(D)   Each member of a local council shall serve a term of three years, except that, for the initial members, two members of each council shall serve a term of one year, and two other members of each council shall serve a term of two years.

(E)   The boundaries of each of the local council districts and the seven areas of each local council district are to be based on population and determined by the Office of Research and Statistics of the State Budget and Control Board.


Printed Page 812 . . . . . Wednesday, February 8, 2006

(F)   The chairperson of each local council shall report to the State Superintendent of Education.

(G)   A local council district may contract with a nonprofit or private entity to run the local council district's school system.

Section 59-17-245.   The chairperson of each local council district shall represent the local council on the state board of trustees. The state board of trustees shall meet each month with the location of the meeting to rotate among each of the local council districts.

Section 59-17-250.   The State Board of Education shall promulgate regulations relating to the implementation of this chapter.

Section 59-17-260.   (A)   All property, real and personal, and all assets of the districts must become the property of the South Carolina School District and all liabilities of the districts must become the obligations of the district.

(B)   All general obligation debt of the former school districts of the State is absorbed by the South Carolina School District effective July 1, 2011. Effective beginning with property tax year 2011, the Comptroller General shall calculate and impose a statewide property tax millage on all taxable property sufficient to pay the interest and principal on the general obligation debt assumed by the district. Thereafter, the provisions of Article X, Section 15 of the Constitution of this State apply with respect to the authority of the South Carolina School District to incur general obligation debt, and the Comptroller General shall calculate and impose a statewide property tax millage on all taxable property sufficient to pay the interest and principal on the general obligation debt of the district. The State Election Commission shall conduct any referendum required for the South Carolina School District to incur general obligation debt and the district shall reimburse the commission for the expenses of the referendum.

Section 59-17-270.   In the event that any employee of the district is prosecuted in any action, civil or criminal, or special proceeding in the courts of this State, or of the United States, by reason of any act done or omitted in good faith in the course of his employment, it is made the duty of the school district, when requested in writing by the public school employee, to appear and defend the action or proceeding in his behalf.

Section 59-17-280.   Bonds issued by the district under the bonded indebtedness limitation of Article X, Section 15(7)(a) of the South Carolina Constitution and called before the maturity date only may be reissued if the amount required to service the reissuance and to pay off the called bonds does not:


Printed Page 813 . . . . . Wednesday, February 8, 2006

(1)   increase by more than eight percent in any one year the amount of the district's budget needed to service the original bonded indebtedness; or

(2)   exceed the debt limit of the district.

Section 59-17-290.   (A)The board of trustees of the district may grant credit as an elective to a pupil who satisfactorily has completed a high school course in American Sign Language.

(B)   The State Board of Education shall establish guidelines on the qualifications needed for those teaching an American Sign Language course and on a recommended course of study to be followed.

Section 59-17-300.   (A)The General Assembly finds:

(1)   the schools of South Carolina must provide the safest environment possible for students to learn;

(2)   teaching positive character traits is essential to improving the learning environment, promoting student achievement, reducing disciplinary problems, and developing civic-minded students;

(3)   schools must be encouraged to instill the highest character and academic excellence in each student, in close cooperation with the student's parents; and

(4)   elected officials, community and civic leaders, business leaders, religious institutions, youth organizations, government, media, and citizens-at-large must be encouraged to become actively involved in creating an atmosphere which encourages positive character development through every sector of the community.

(B)   The South Carolina School District shall develop a policy addressing character education. The character education program must, to the extent possible, incorporate character traits including, but not limited to, the following: respect for others, honesty, self-control, cleanliness, courtesy, good manners, cooperation, citizenship, patriotism, courage, fairness, kindness, self-respect, compassion, diligence, generosity, punctuality, cheerfulness, patience, sportsmanship, loyalty, and virtue. The policy and program developed by the district must include an evaluation component.

(C)   The district is encouraged to require students in the public schools to exhibit appropriate conduct, as required in subsection (D) of this section.

(D)   When a public school student is speaking with a public school employee while on school property or at a school sponsored event, the student may be encouraged to address and respond to the public school employee by using terms indicative of or reflecting


Printed Page 814 . . . . . Wednesday, February 8, 2006

courtesy and respect for a public school's employees position of authority including, but not limited to, sir, ma'am, thank you, and please.

(E)   The district is encouraged to provide for incorporation of the requirements of subsections (C) and (D) into any existing discipline policy or any code of conduct of the school district.

(F)   The school board may not provide suspension or expulsion from school as an appropriate punishment for violation of subsection (D).

(G)   Upon request, the State Department of Education shall provide to the district information on currently available programs, curriculums, and resources. In addition, the State Department of Education must provide to the school district information on best practices and successful programs currently being implemented.

Section 59-17-310.   (A)   The district during annual in-service training shall provide a program of instruction for teachers and administrators in the essentials of constitutional protections and prohibitions as they relate to religion and public school operations. Subjects must include, but not be limited to:

(1)   student prayers;

(2)   graduation prayers and baccalaureates;

(3)   participation in or encouragement of religious activity by school officials;

(4)   religion in school curriculum;

(5)   religious content in student assignments;

(6)   distribution and use of religious literature;

(7)   student participation in religious events before and after school;

(8)   religious persuasion versus religious harassment;

(9)   religious holidays;

(10)   permitted absences from objectionable lessons in religion;

(11)   released time for religious instruction;

(12)   teaching values;

(13)   religious attire;

(14)   Federal Equal Access Act;

(15)   Federal Religious Freedom Restoration Act;

(16)   South Carolina Religious Freedom Act;

(17)   other statutory and constitutional provisions regarding the establishment of religion and free exercise thereof, as they relate to a public school context;


Printed Page 815 . . . . . Wednesday, February 8, 2006

(18)   instruction on how to access legal advice concerning the establishment of religion and free exercise thereof in a public school context; and

(19)   instruction on how to access the State Department of Education's guidelines on religion and the public schools on the department's website.

(B)   Once a teacher or administrator has completed the program of instruction contained in this section, it is not necessary that they participate in the same program of instruction on an annual basis. However, teachers and administrators who have completed the program of instruction annually shall participate in instruction regarding updates and new developments in the subject matter contained in this section.

Section 59-17-320.   (A)   Municipal and county governing bodies shall work with the local council to identify barriers and hazards to children walking or bicycling to and from school. The municipalities, counties, and local councils may develop a plan for the funding of improvements designed to reduce the barriers and hazards identified. The sources of these funds may include federal funding or grants, state funding, or funding from private sources. Nothing in this section shall obligate any agency of federal, state, or local government to provide funding for identified improvements.

(B)(1)   Each local council may establish a Safe Routes to School Coordinating Committee. The coordinating committee shall include parents, children, teachers, administrators, local law enforcement officials, public health officials, interested citizens, and other persons familiar with the transportation needs of the local council district. Duties of the coordinating committee may include gathering information about the schools in the local council district through surveys and traffic counts; organizing incentive-based events and contests to encourage students to try new modes of transportation; and promoting the program through school newsletters, assemblies, web sites, and other means to reach parents and students.

(2)   A school within the local council district may establish a Safe Routes to School Team. The team shall include parents, children, teachers, administrators, and neighbors of the school. The team may be expanded to include local law enforcement officials, public health officials, and other persons familiar with the transportation needs of the school. The team shall select a representative to serve on the coordinating committee. Duties of the team may include gathering information about their school through surveys and traffic counts;


Printed Page 816 . . . . . Wednesday, February 8, 2006

organizing incentive-based events and contests to encourage students to try new modes of transportation; and promoting the program through school newsletters and other means to reach parents and students.

(C)   The first Wednesday of October of each year is designated as 'Walk or Bicycle with Your Child to School Day' in each school district of this State to promote walking or riding bicycles to school by students, with escorts if necessary, and to identify needed improvements such as sidewalks or safer pedestrian routes not open to vehicular traffic."
SECTION   2.   Chapter 3, Title 59 of the 1976 Code is amended by adding:

"Section 59-3-5.   The Superintendent of Education must be appointed by the Governor upon the advice and consent of the Senate. The superintendent shall serve at the pleasure of the Governor. The superintendent must be a member of the Governor's executive cabinet subject to removal from office by the Governor pursuant to Section 1-3-240. Before entering upon the duties of his office the superintendent shall give bond for the use of the State in the penal sum of five thousand dollars, with good and sufficient sureties, to be approved by the Governor, conditioned for the faithful and impartial performance of the duties of his office. The superintendent shall file the bond with the Secretary of State, who shall record the bond and file it with the State Treasurer."
SECTION   3.   Section 1-30-10(B) of the 1976 Code is amended to read:

"(B)(1)   The governing authority of each department shall be either:

(i)     a director, and in the case of the Department of Commerce and the Department of Education, the secretary and the superintendent, respectively, who must be appointed by the Governor with the advice and consent of the Senate, subject to removal from office by the Governor pursuant to provisions of Section 1-3-240; or,

(ii)   a seven member board to be appointed and constituted in a manner provided for by law; or,

(iii)   in the case of the Department of Agriculture and the Department of Education, the State Commissioner of Agriculture and the State Superintendent of Education, respectively, elected to office under the Constitution of this State.

(2)   In making appointments to boards and for department directors, race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this


Printed Page 817 . . . . . Wednesday, February 8, 2006

State; however, consideration of these factors in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The Governor in making the appointments provided for by this section shall endeavor to appoint individuals who have demonstrated exemplary managerial skills in either the public or private sector."
SECTION   4.   Section 1-30-40 of the 1976 Code is amended to read:

"Section 1-30-40.   Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Education:

State Department of Education South Carolina School District, provided for at Section 59-5-10 59-17-210, et seq."
SECTION   5.   Section 1-11-310(E) of the 1976 Code is amended to read:

"(E)   Titles to school buses and service vehicles operated by the State Department of Education South Carolina School District and vehicles operated by the South Carolina Department of Transportation must be retained by those agencies."
SECTION   6.   Chapters 13 and 15 of Title 59 of the 1976 Code are repealed.
SECTION   7.   (A)   The education Oversight Committee shall oversee the implementation of this Part.

(B)   Upon enactment of this Part, the Office of Research and Statistics of the South Carolina Budget and Control Board shall divide the State into forty local council districts, each of which shall serve an approximately equal number of students with at least fifteen thousand students in each district. The Office of Research and Statistics also shall divide each of the local council districts into seven areas based on student population.

(C)   The first elections for local councils must be held on the fist tuesday of November of 2010.
SECTION   8.   The Code Commissioner is directed to change references from the State Department of Education and the State Board of Education to the South Carolina School District or the Superintendent of Education as necessary after the enactment of this Part.
SECTION   9.   This Part takes effect July 1, 2011


Printed Page 818 . . . . . Wednesday, February 8, 2006

PART III

SECTION   1.   This Part may be cited as the "South Carolina Educational Scholarship Act".
SECTION 2.   The purpose of this Part is to:

(1)   restore parental control of education;

(2)   improve public school performance; and

(3)   expand educational opportunities for children of families in poverty.
SECTION   3.   Chapter 63, Title 59 of the 1976 Code is amended by adding:

"Article 6
Educational Scholarships

Section 59-63-610.   (A)   As used in this article:

(1)   'Public school' means a public school in the State as defined in Section 59-1-120.

(2)   'Parent' means the natural or adoptive parent or legal guardian of a child.

(3)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(B)   This article only applies to a student:

(1)   whose household income is less than three hundred percent of the federal poverty rate; or

(2)   who is determined by a school psychologist to be physically or mentally handicapped according to the definitions in Section 59-21-510, regardless of household income.

Section 59-63-620.   (A)   A student is eligible to transfer to another public school or an independent school if the:

(1)   student's household income is less than three hundred percent of the federal poverty rate; or

(2)   student is determined by a school psychologist to be physically or mentally handicapped according to the definitions in Section 59-21-510.

(B)   A student who meets the criteria in subsection (A) may contact the Department of Education for a list of independent schools and public schools.

Section 59-63-625.   (A)   If a student meets the criteria in Section 59-63-620 and chooses to transfer from one public school to:


Printed Page 819 . . . . . Wednesday, February 8, 2006

(1)   another public school in his resident district but not in his attendance area, the district shall adjust monetary differences between the schools;

(2)   another public school outside his resident district and if the receiving district accepts the transfer student, his resident school district shall reimburse that district for the cost of his attendance equal to fifty percent of the projected per pupil cost as promulgated by the Office of Research and Statistics; or

(3)   an independent school, the Department of Education shall issue a check to the parents or guardians and the independent school they select for the lesser of an amount equal to fifty percent of the projected state per pupil cost as promulgated by the Office of Research and Statistics or the cost of tuition fees at the independent school.

(B)   Notwithstanding subsection (A) of this section or Section 59-63-620, if the student is determined by a school psychologist to be physically or mentally handicapped and the special needs student chooses to transfer from his school district to:

(1)   another public school in his resident district but not in his attendance area, the district shall adjust monetary differences between the schools;

(2)   another public school outside his resident district, his resident school district shall reimburse that district for the cost of his attendance equal to fifty percent of the projected per pupil cost as promulgated by the Office of Research and Statistics; or

(3)   to an independent school, the Department of Education shall issue a check to the parents or guardians and the independent school they select for the lesser of an amount equal to the appropriate pupil classification weighting for that student pursuant to Section 59-20-40 multiplied by fifty percent of the projected state per pupil cost as promulgated by the Office of Research and Statistics or the cost of tuition fees at the independent school.

Section 59-63-630.   An independent school that accepts voucher students pursuant to this article:

(1)   shall comply with the federal anti-discrimination law, pursuant to 42 U.S. Code Section 2000(d);

(2)   shall meet state and local health and safety laws and codes;

(3)   shall comply with state statutes relating to independent schools;

(4)   shall employ or contract with teachers who hold a baccalaureate or higher degree, or have at least three years of teaching experience in a public or independent school, or have special skills,


Printed Page 820 . . . . . Wednesday, February 8, 2006

knowledge, or expertise that qualifies them to provide instruction in subjects taught;

(5)   must be academically accountable to the parent or guardian for meeting the education needs of the student;

(6)   shall administer to all students a nationally recognized achievement test and report the school's aggregate score to all parents;

(7)   shall adhere to the tenets of the school's published disciplinary procedures prior to the expulsion of an Educational Choice Program participant;

(8)   shall accept voucher students who meet the admissions criteria of the school on a random, religious neutral basis, without regard to the student's past academic history, with preference given to siblings of other voucher students;

(9)   may not compel a voucher student to profess a specific ideological belief, to pray, or to worship; and

(10)   demonstrate their financial viability by showing they can repay any funds that might be owed to the State, if they are to receive more than fifty thousand dollars in voucher payments during the school year by filing with the Department of Revenue, before the beginning of the school year:

(a)   a surety bond payable to the State in an amount equal to the aggregate amount of voucher revenue expected to be paid to the school by participating families during the school year; or

(b)   financial information that demonstrates that the school has the ability to pay an aggregate amount equal to the amount of voucher revenue expected to be paid to the school by participating families during the school year.

Section 59-63-635.   (A)   The parent of the student shall:

(1)   notify the Department of Education and the school district of the decision to transfer the student from one public school to an independent or public school, or from an independent or public school back to another independent or public school;

(2)   have access to the school's aggregate testing information;

(3)   arrange for transportation of the student to the independent school or to the district boundary or a mutually agreed upon location, if the student chooses to attend a public school outside his district.

(B)   The student shall remain in attendance throughout the school year, unless excused for illness or good cause, and comply with the school's code of conduct.

Section 59-63-637.   The Department of Education shall make voucher payment by check payable to the transferring student's parent


Printed Page 821 . . . . . Wednesday, February 8, 2006

or legal guardian and to the school at which the voucher is to be used. The check may be delivered or mailed by the Department of Education to the school at which the voucher is to be used. All payees must endorse the check. The check may be endorsed by the school on behalf of the student's parent or legal guardian if the parent or legal guardian has placed on file with the school written authorization to endorse the check.

Section 59-63-640.   Once a student transfers pursuant to this article, the student is eligible for the voucher program until he graduates from high school regardless of a subsequent change in the rating of the school from which he transferred.

Section 59-63-645.   If a qualifying student's enrollment in an independent school is terminated before the end of the school year, the independent school shall pay to the State on a pro rata basis any excess tuition paid. At the time of making the refund, the independent school shall issue a receipt reflecting the date, amount, and payee for each refund and shall provide a copy of the receipt to the Department of Revenue.

Section 59-63-647.   The Department of Revenue may promulgate regulations to aid in the performance of its duties pursuant to this chapter, however, its power does not extend to matters of school governance, curriculum, hiring or firing, or religious beliefs or practices.

Section 59-63-648.   The Department of Revenue may conduct examinations and investigations whenever it believes that the provisions of this chapter have been evaded or violated in any manner. All powers possessed by the department as provided in Title 12 to conduct examinations and investigations apply to examinations and investigations conducted pursuant to this section.

Section 59-63-650.   (A)   Annually, the State Budget and Control Board shall provide for the preparation of a report on the impact of the implementation of this chapter on school enrollment and state and local funding of public schools for the fiscal year most recently completed. The report must include, but need not be limited to, an analysis of and statement on the:

(1)   change in public school enrollment, by school district, attributable to this chapter; and

(2)   amount of funds the State would have had to expend for public schools under the education funding formula in existence on or before the enactment of this chapter and the amount actually expended by the State in public schools.


Printed Page 822 . . . . . Wednesday, February 8, 2006

(B)   The report must be submitted by December first of each year to the Governor, the Chairman of the Senate Finance Committee, the Chairman of the Senate Education Committee, the Chairman of the House Ways and Means Committee, and the Chairman of the House Education and Public Works Committee.

Section 59-63-655.   (A)(1)   In addition to the annual report as provided in Section 59-63-650, the State Budget and Control Board shall provide for a long-term evaluation of the impact of this chapter. The evaluation must be conducted by contract with one or more qualified persons or entities with previous experience evaluating school choice programs and must be conducted for a minimum of five years beginning five years after enactment of this section. The evaluation must include an assessment of the:

(a)   level of parental satisfaction for parents of students participating in the voucher program provided for in this chapter;

(b)   level of parental satisfaction for parents of students in public schools;

(c)   academic performance of participating independent schools and public schools;

(d)   level of student satisfaction with the voucher program provided for in this chapter;

(e)   level of student satisfaction for students attending public schools;

(f)   impact of the provisions of this chapter on public school districts, public school students, independent schools, and independent school students; and

(g)   impact of the provisions of this chapter on school capacity, availability, and quality.

(2)   The evaluation must be conducted using appropriate analytical and behavioral science methodologies and must protect the identity of participating schools and students by, at a minimum, keeping anonymous all disaggregated data other than that for the categories of grade, gender, race, and ethnicity. The evaluation of public and independent school students must compute the relative efficiency of public and independent schools, the value added to educational performance by independent schools relative to public schools, and a comparison of acceptance rates into college, while adjusting or controlling for student and family background.

(B)   State and local government entities shall cooperate with the persons or entities conducting the evaluation provided for in subsection


Printed Page 823 . . . . . Wednesday, February 8, 2006

(A). Cooperation includes providing available student assessment results and other information needed to complete the evaluation.

(C)   The State Budget and Control Board shall pay the cost of the evaluation from funds available to it for that purpose except that state funds used must not exceed four hundred thousand dollars per year.

(D)   By January thirty-first of each year, the State Budget and Control Board shall provide to each member of the General Assembly interim reports of the results of the evaluation. Upon completion of the evaluation, the State Budget and Control Board shall provide a final report to each member of the General Assembly. At the same time as the final report is made public, the persons or entities who conducted the evaluation must make their data and methodology available for public review and inspection, but only if the release of the data and methodology is in compliance with 20 U.S.C. Section 1232g, Family Educational Rights and Privacy Act of 1974.

Section 59-63-660.   The provisions of this article regarding independent schools only apply to independent schools that choose to accept voucher students."
SECTION   4.   (A)   A qualifying school that accepts students benefiting from vouchers is not an agent or arm of the state or federal government.

(B)   Except as provided by this Part, the Department of Education, Department of Revenue, Budget and Control Board, or any other state agency may not regulate the educational program of a qualifying school that accepts students pursuant to this Part.

(C)   One purpose of this Part is to allow maximum freedom to parents and independent schools to respond to and provide for the educational needs of children without governmental control, and this Part must be liberally construed to achieve that purpose.
SECTION   5.   If a section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this Part is for any reason held to be unconstitutional or invalid, this holding does not affect the constitutionality or the validity of the remaining portions of this Part, the General Assembly hereby declaring that it would have passed this Part, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective.


Printed Page 824 . . . . . Wednesday, February 8, 2006

SECTION   6.   This Part takes effect at the start of the first school year beginning at least one year from approval of this Part by the Governor./
Renumber sections to conform.
Amend title to conform.

Rep. RICE explained the amendment.

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

Rep. RICE proposed the following Amendment No. 12 (Doc Name COUNCIL\GGS\22406SJ06), which was tabled:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
SECTION   1.   Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Article 11
Additional Sales, Use, and Casual Excise Tax

Section 12-36-1110.   An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one percent tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients."
SECTION   2.   Section 11-11-150 of the 1976 Code, as last amended by Act 387 of 2000, is further amended by adding:

"(H)   Beginning July 1, 2005, and notwithstanding the provisions of Section 12-37-251(B) revenues from the Trust Fund for Tax Relief to be distributed to a school district as a reimbursement for the property tax exemption enumerated in item (1) of subsection (A) must be paid monthly in an amount that is the district's share of these revenues based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act."
SECTION   3.   Section 12-24-10 of the 1976 Code is amended to read:

"Section 12-24-10.   (A)   In addition to all other recording fees, a recording fee is imposed for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The fee is one dollar eighty-five cents for each five hundred dollars, or fractional part of five hundred dollars, of the realty's value as determined by Section 12-24-30.


Printed Page 825 . . . . . Wednesday, February 8, 2006

(B)   In addition to all other recording fees and in addition to the fee described in subsection (A), there is imposed a recording fee for the privilege of recording a deed in which any lands and all improvements on the land, tenements, or other realty is transferred to another person. The additional fee is one dollar fifteen cents for each five hundred dollars, or fractional part of five hundred dollars of the realty's value as determined by Section 12-24-30. Notwithstanding another provision of this chapter to the contrary, this additional recording fee imposed in this subsection (B) must be deposited in the School Tax Millage Exemption Trust Fund established by Section 11-11-155."
SECTION   4.   Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-130.   (A)   In addition to all other property taxes imposed by law, there is imposed on all taxable property for every property tax year a property tax at the rate of one hundred mills. The revenue of this additional property tax must be remitted to the State Treasurer on the schedule and in the manner he directs and credited to the School Tax Millage Exemption Trust Fund established pursuant to Section 11-11-155.

(B)   To the extent the millage imposed pursuant to subsection (A) of this section exceeds the millage imposed in a school district for school operations for fiscal year 2004-2005, there is allowed as a credit against the tax attributable to this millage an amount equal to the tax attributable to the difference in the millage rates.   "
SECTION   5.   Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-155.   (A)   For each fiscal year, the revenue from the tax imposed pursuant to Section 12-36-1110, the revenue derived from the additional deed transfer fee imposed pursuant to Section 12-24-10(B), the revenue of the property tax imposed pursuant to Section 12-37-130, and all estimated additional sales, use, and casual excise tax revenue collected as a result of tax exemptions and tax caps deleted, revised, or repealed effective July 1, 2005, as determined by the Board of Economic Advisors, are automatically credited to a fund separate and distinct from the state general fund known as the 'School Tax Millage Exemption Trust Fund' (the School Trust Fund). The Board of Economic Advisors shall account for the School Trust Fund revenue separately from general fund revenues in reports to the Governor and the General Assembly. No portion of these revenues are credited to the Education Improvement Act (EIA) Fund.


Printed Page 826 . . . . . Wednesday, February 8, 2006

(B)   An unexpended balance in the School Trust Fund at the end of a fiscal year must remain in the School Trust Fund.

(C)   Earnings on the School Trust Fund must be credited to the School Trust Fund.

(D)   Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the School Trust Fund.

(E)   The School Trust Fund may also accept cash contributions from taxpayers authorized by Section 12-6-1145 and these contributions must be used and applied in the same manner other School Trust Fund revenues are used and applied."
SECTION   6.   Chapter 6 of Title 12 of the 1976 Code is amended by adding:

"Section 12-6-1145.   A deduction is allowed from South Carolina taxable income for cash contributions for any educational purpose made to a public school or to a school district of the State, or made to the School Tax Millage Exemption Trust Fund established by Section 11-11-155."
SECTION   7.   Section 12-36-60 of the 1976 Code is amended to read:

"Section 12-36-60.   'Tangible personal property' means personal property which may be seen, weighed, measured, felt, touched, or which is in any other manner perceptible to the senses. It also includes a South Carolina Education Lottery Ticket sold by a lottery retailer as provided in Chapter 150 of Title 59. It also includes services and intangibles, including communications, laundry and related services, furnishing of accommodations, and sales of electricity, the sale or use of which is subject to tax under this chapter and does not include stocks, notes, bonds, mortgages, or other evidences of debt. Tangible personal property does not include the transmission of computer database information by a cooperative service when the database information has been assembled by and for the exclusive use of the members of the cooperative service."
SECTION   8.   Section 12-36-90(1) of the 1976 Code is amended by adding a subitem appropriately lettered at the end to read:

"( )   the proceeds from the sale of a South Carolina Education Lottery Ticket. The ticket prices must be in whole dollar amounts to which the required sales tax must be added."
SECTION   9.   Section 12-36-2110 of the 1976 Code, as last amended by Act 283 of 2000, is further amended to read:

"Section 12-36-2110.   (A)   The maximum tax imposed by this chapter is three hundred one thousand dollars for each sale made or


Printed Page 827 . . . . . Wednesday, February 8, 2006

lease executed after June 30, 1984, or lease executed after August 31, 1985 2005, of each:

(1)   aircraft, including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft;

(2)   motor vehicle;

(3)   motorcycle;

(4)   boat;

(5)   trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and horse trailers but not including house trailers or campers as defined in Section 56-3-710;

(6)   recreational vehicle, including tent campers, travel trailer, park model, park trailer, motor home, and fifth wheel; or

(7)   self-propelled light construction equipment with compatible attachments limited to a maximum of one hundred sixty net engine horsepower.

In the case of a lease, the total tax rate required by law applies on each payment until the total tax paid equals three hundred one thousand dollars. Nothing in this section prohibits a taxpayer from paying the total tax due at the time of execution of the lease, or with any payment under the lease. To qualify for the tax limitation provided by this section, a lease must be in writing and specifically state the term of, and remain in force for, a period in excess of ninety continuous days.

(B)   For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:

(1)   subtract trade-in allowance from the sales price;

(2)   multiply the result from (1) by sixty-five percent;

(3)   if the result from (2) is no greater than six sixteen thousand six hundred sixty-six dollars and sixty-seven cents, multiply by five six percent for the amount of tax due;

(4)   if the result from (2) is greater than six sixteen thousand six hundred sixty-six dollars and sixty-seven cents, the tax due is three hundred one thousand dollars plus two three percent of the amount greater than six sixteen thousand six hundred sixty-six dollars and sixty-seven cents.

However, a manufactured home is exempt from any tax that may be due above three hundred one thousand dollars as a result of the calculation in item (4) if it meets these energy efficiency levels: storm or double pane glass windows, insulated or storm doors, a minimum thermal resistance rating of the insulation only of R-11 for walls, R-19 for floors, and R-30 for ceilings. However, variations in the energy


Printed Page 828 . . . . . Wednesday, February 8, 2006

efficiency levels for walls, floors, and ceilings are allowed and the exemption on tax due above three hundred one thousand dollars applies if the total heat loss does not exceed that calculated using the levels of R-11 for walls, R-19 for floors, and R-30 for ceilings. The edition of the American Society of Heating, Refrigerating, and Air Conditioning Engineers Guide in effect at the time is the source for heat loss calculation. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency levels provided for in this subsection. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office.

(C)   For the sale of each musical instrument, or each piece of office equipment, purchased by a religious organization exempt under Internal Revenue Code Section 501(c)(3), the maximum tax imposed by this chapter is three hundred one thousand dollars. The musical instrument or office equipment must be located on church property and used exclusively for the organization's exempt purpose. The religious organization must furnish to the seller an affidavit on forms prescribed by the department. The affidavit must be retained by the seller.

(D)   Repealed Reserved.

(E)   Equipment provided, supplied, or installed on a firefighting vehicle is included with the vehicle for purposes of calculating the maximum tax due under this section."
SECTION   10.   Section 12-36-910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding a new subsection at the end to read:

"(D)(1)   Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully can be purchased with United States Department of Agriculture food coupons is one percent.

(2)   Notwithstanding any other provision of law providing for the use of sales and use tax revenues, an amount equal to twenty percent of the revenue of the sales and use tax imposed pursuant to this subsection; as estimated by the Board of Economic Advisors, must be credited to the Education Improvement Act Fund as provided in Section 59-21-1010(B)."


Printed Page 829 . . . . . Wednesday, February 8, 2006

SECTION   11.   Items (8), (11), (12), (13), (14), (20), (21), (26), (33), (35), (37), (40), (49), (53), (54), (55), (57), (58), (59), and (60) of Section 12-36-2120 of the 1976 Code are amended to read:

"(8)   newsprint paper, newspapers, and religious publications, including the Holy Bible and the South Carolina Department of Agriculture's The Market Bulletin;

(11)[Reserved](a)   toll charges for the transmission of voice or messages between telephone exchanges;

(b)   charges for telegraph messages;

(c)   carrier access charges and customer access line charges established by the Federal Communications department or the South Carolina Public Service department; and

(d)transactions involving automatic teller machines;

(12)   [Reserved]water sold by public utilities, if rates and charges are of the kind determined by the Public Service Commission, or water sold by nonprofit corporations organized pursuant to Chapter 36 of Title 33;

(13)   [Reserved]fuel, lubricants, and supplies for use or consumption aboard ships in intercoastal trade or foreign commerce. This exemption does not exempt or exclude from the tax the sale of materials and supplies used in fulfilling a contract for the painting, repair or reconditioning of ships and other watercraft;

(14)   [Reserved]wrapping paper, wrapping twine, paper bags, and containers, used incident to the sale and delivery of tangible personal property;

(20)   [Reserved]railroad cars, locomotives, and their parts, monorail cars, and the engines or motors that propel them, and their parts;

(21)   [Reserved]vessels and barges of more than fifty tons burden;

(26)   [Reserved]all supplies, technical equipment, machinery, and electricity sold to radio and television stations, and cable television systems, for use in producing, broadcasting, or distributing programs. For the purpose of this exemption, radio stations, television stations, and cable television systems are deemed to be manufacturers;

(33)   [Reserved]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;


Printed Page 830 . . . . . Wednesday, February 8, 2006

(35)   [Reserved]motion picture film sold or rented to or by theaters;

(37)   [Reserved]petroleum asphalt products, commonly used in paving, purchased in this State, which are transported and consumed out of this State;

(40)   [Reserved]containers and chassis, including all parts, components, and attachments, sold to international shipping lines which have a contractual relationship with the South Carolina State Ports Authority and which are used in the import or export of goods to and from this State;

(49)   [Reserved]postage purchased by a person engaged in the business of selling advertising services for clients consisting of mailing, or directing the mailing of, printed advertising material through the United States mail directly to the client's customers or potential customers or by a person to mail or direct the mailing of printed advertising material through the United States mail to a potential customer;

(53)   [Reserved]motor vehicle extended service contracts and motor vehicle extended warranty contracts.

(54)   [Reserved]clothing and other attire required for working in a Class 100 or better as defined in Federal Standard 209E clean room environment.

(55)   [Reserved]audiovisual masters made or used by a production company in making visual and audio images for first generation reproduction. For purposes of this item:

(a)   'Audiovisual master' means an audio or video film, tape, or disk, or another audio or video storage device from which all other copies are made.

(b)   'Production company' means a person or entity engaged in the business of making motion picture, television, or radio images for theatrical, commercial, advertising, or education purposes.;

(57)[Reserved](a)   sales taking place during a period beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday of:

(i)     clothing;

(ii)   clothing accessories including, but not limited to, hats, scarves, hosiery, and handbags;

(iii)   footwear;

(iv)   school supplies including, but not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators;


Printed Page 831 . . . . . Wednesday, February 8, 2006

(v)   computers, printers and printer supplies, and computer software.;

(b)   the exemption allowed by this item does not apply to:

(i)     sales of jewelry, cosmetics, eyewear, wallets, and watches;

(ii)   sales of furniture;

(iii)   a sale of an item placed on layaway or similar deferred payment and delivery plan however described;

(iv)   rental of clothing or footwear;

(v)   a sale or lease of an item for use in a trade or business.;

(c)   before July tenth of each year, the department shall publish and make available to the public and retailers a list of those articles qualifying for the exemption allowed by this item.;

(58)   [Reserved]cooperative direct mail promotional advertising materials delivered by means of interstate carrier, a mailing house, or a United States Post Office to residents of this State from locations both inside and outside the State. For purposes of this item, "cooperative direct mail promotional advertising materials" means discount coupons, advertising leaflets, and similar printed advertising, including any accompanying envelopes and labels which are distributed with promotional advertising materials of more than one business in a single package to potential customers, at no charge to the potential customer, of the businesses paying for the delivery of the material.

(59)   [Reserved]facilities for transmitting electricity that is transferred, sold, or exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions to a limited liability company which is subject to regulation under the Federal Power Act (16 U.S.C. Section 791(a)) and which is formed to operate or to take functional control of electric transmission assets as defined in the Federal Power Act;

(60)   [Reserved]a lottery ticket sold pursuant to Chapter 150 of Title 59;"
SECTION   12.   Chapter 37 of Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253.   (A)   After the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251, any remaining fair market value otherwise subject to tax is exempt from all school taxes except taxes:

(1)   levied for bonded indebtedness for capital construction for schools;


Printed Page 832 . . . . . Wednesday, February 8, 2006

(2)   levied to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction for schools; and

(3)   levied for school operations sufficient to prevent any decline in the district's operating budget from state funds and property taxes from fiscal year 2004-2005 to 2005-2006. Millage for fiscal year 2005-2006 to prevent a reduction and fund teacher salaries may not be increased in subsequent years, and it must be decreased in subsequent years through millage adjustments by a dollar amount equal to one-half of the new revenue provided to the district from EFA distributions and the School Trust Fund for those years. It must also be decreased to reflect any rollback resulting from reassessment.

(B)   School districts must be paid monthly from revenues credited to the School Trust Fund for a fiscal year for the exemption allowed by this section in an amount that is the district's proportionate share of School Trust Fund revenues based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. The School Trust Fund revenues that must be paid to school districts comprise the total of the following amounts:

(1)   the revenue of the taxes imposed pursuant to Section 12-36-1110;

(2)   the revenue of the tax imposed pursuant to Section 12-37-130;

(3)   the revenue of the additional deed transfer fee imposed pursuant to Section 12-24-10(B);

(4)   annual sales, use and casual excise tax revenue attributable to the exemptions and caps deleted or revised as of July 1, 2005; and

(5)   the General Assembly expresses its intent to fund annual growth in School Trust Fund revenues at least equal to the increase in the Consumer Price Index and state population each year.

(C)   Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State.

(D)   The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations."


Printed Page 833 . . . . . Wednesday, February 8, 2006

SECTION   13.   Notwithstanding any other provisions of law, the South Carolina Public Service Commission shall order reductions on regulated utility rates charged customers of public utilities with rates regulated by the commission sufficient to reflect the net reduced property tax paid by these utilities.
SECTION   14.   Section 59-20-40(1)(c) of the 1976 Code, as last amended by Act 92 of 2003, is further amended to read:

"(c)   Weightings, used to provide for relative cost differences, between programs for different students are established in order that funds may be equitably distributed on the basis of pupil needs. The criteria for qualifications for each special classification must be established by the State Board of Education according to definitions established in this article and in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, and 59-53-1900. Cost factors enumerated in this section must be used to fund programs approved by the State Board of Education. Pupil data received by the Department of Education is subject to audit by the department. Cost factors or weightings are as follows:

Pupil Classification                 Weightings

(1)   Kindergarten pupils                 1.30

(2)   Primary pupils (grades 1 through 3)         1.24

(3)   Elementary pupils (grades 4 through 8)
base students                           1.00

(4)   High school pupils (grades 9 through 12)     1.25
Special Programs for Exceptional Students     Weightings

(5)   Handicapped                     1.74

a.   Educable mentally handicapped pupils

b.   Learning disabilities pupils

(6)   Handicapped                     2.04

a.   Trainable mentally handicapped pupils

b.   Emotionally handicapped pupils

c.   Orthopedically handicapped pupils

(7)   Handicapped                     2.57

a.   Visually handicapped pupils

b.   Hearing handicapped pupils

c.   pupils with autism.

(8)   Speech handicapped pupils             1.90

(9)   Homebound pupils                 2.10

a.   pupils who are homebound

b.   pupils who reside in emergency shelters

(10)   Pre-vocational                   1.20


Printed Page 834 . . . . . Wednesday, February 8, 2006

(11)   Vocational                     1.29
Add-on Weights for Early Childhood Development and Academic Weightings Assistance

(12)   Early Childhood Assistance           0.26

(13)   Grades 4-12 Academic Assistance         0.114
Adult Education

(14)   Adult Education                   0.15

(5)   Trainable Mentally Handicapped         2.04

(6)   Speech Handicapped                 1.90

(7)   Homebound                     2.10

(8)   Emotionally Handicapped             2.04

(9)   Educable Mentally Handicapped         1.74

(10)   Learning Disabilities                 1.74

(11)   Hearing Handicapped                 2.57

(12)   Visually Handicapped               2.57

(13)   Orthopedically Handicapped           2.04

(14)   Vocational (Grades 9-12)             1.29

(15)   Autism                         2.57

No local match is required for adult education and the number of weighted pupil units funded depends on funding available from the general fund of the State and the Education Improvement Act of 1984 Fund.

Each student in the State must be counted in only one of the first eleven pupil classifications. Students shall generate funds for early childhood assistance and grades 4-12 academic assistance in accordance with Section 59-139-20. The State Board of Education must determine the qualifications for each classification in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, 59-53-1900, and Chapter 30 of this title. The program for each classification must meet specifications approved by the State Board of Education.

School districts may count each student who is instructed at home under the provisions of Section 59-65-40 in the district's weighted pupil units at a weighting of .25 for supervising, overseeing, or reviewing the student's program of home instruction. No local match is required for students instructed at home under the provisions of Section 59-65-40."
SECTION   15.   Chapter 20 of Title 59 of the 1976 Code is amended by adding:

"Section 59-20-42.   (A)   Notwithstanding any other provision of law, beginning with fiscal year 2005-2006, Education Finance Act appropriations and employer contributions must be distributed to a


Printed Page 835 . . . . . Wednesday, February 8, 2006

school district in an amount that is the district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act.

(B)   It is the intent of the General Assembly that funding for weighted pupil unit growth for Education Finance Act purposes must be at least equal to the growth in the Consumer Price Index each year.

(C)   Beginning July 1, 2005, a base student cost no longer shall be established annually by the General Assembly nor shall the Division of Research and Statistics calculate an annual inflation factor as required by Section 59-20-40(1)(b)."
SECTION   16.   Notwithstanding the provisions of Section 6-1-320 of the 1976 Code, for a period of three years beginning July 1, 2005, and ending June 30, 2008, a local governing body pursuant to Article 3, Chapter 1 of Title 6, and if otherwise permitted to do so by law may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only by a two-thirds vote of the membership of the governing body, present or not, rather than by a positive majority vote as defined therein. If there is a vacancy in the membership of the governing body, a two-thirds vote of the membership of the governing body as constituted on the date of the vote is required.
SECTION   17.   (A)   Article 3, Chapter 10 of Title 4 and Chapter 37 of Title 4 of the 1976 Code are repealed; provided, however, that the special sales taxes authorized before the effective date of this section to support capital projects under Article 3, Chapter 10 of Title 4 and the special sales taxes or tolls authorized before the effective date of this section to support transportation infrastructure projects under Chapter 37 of Title 4 shall continue until their termination date to provide financing or debt service funding for the projects authorized.

(B)   In those counties in which is imposed on the effective date of this act the local sales and use tax allowed pursuant to Article 1, Chapter 10, Title 4 of the 1976 Code, there must be conducted a referendum held on the Tuesday following the first Monday in November following such effective date on rescinding the tax in the county as provided in Section 4-10-35 of the 1976 Code, without regard to the petition requirements provided therein. If a majority of the qualified electors voting in the referendum favor rescinding the tax, the tax is rescinded on a date determined by the governing body of the county not more than twenty-four months following the date the result of the referendum is certified to county council. The governing body


Printed Page 836 . . . . . Wednesday, February 8, 2006

of the county shall notify the Department of Revenue of the date the tax is rescinded.
SECTION   18.   This act takes effect July 1, 2005, and for purposes of the tax exemption allowed and property tax imposed pursuant to Sections 12-37-253 and 12-37-130 of the 1976 Code as added by this act, apply for property tax years beginning after 2004 and motor vehicle tax years beginning after June 30, 2005.
Renumber sections to conform.
Amend title to conform.

Rep. RICE explained the amendment.

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

Rep. PERRY proposed the following Amendment No. 13 (Doc Name COUNCIL\GJK\20806SD06):
Amend the bill, as and if amended, by striking Section 12-36-1110 of the 1976 Code, as contained in SECTION 1, Part I, and inserting:
/   Section 12-36-1110.   Beginning on the first day of June of the year in which this section takes effect, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, and this additional two percent tax also applies to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients, but this additional tax does not apply to items subject to a maximum sales and use tax pursuant to Section 12-36-2110./
Amend further, as and if amended, by striking subsection B. of SECTION 1, Part I, in its entirety.
Renumber sections to conform.
Amend title to conform.

Rep. PERRY explained the amendment.

Rep. PERRY moved to adjourn debate on the amendment, which was agreed to.

Rep. COTTY proposed the following Amendment No. 14 (Doc Name COUNCIL\GJK\20826SD06), which was adopted:
Amend the bill, as and if amended, in SECTION 1, Part II, by adding a new subsection appropriately numbered to read:


Printed Page 837 . . . . . Wednesday, February 8, 2006

/   (   ) Upon the beginning of reimbursements to property taxing entities including school districts as provided in this Part, reimbursements for a particular year must be paid to the property taxing entities by August thirty-first of that year./
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.

SPEAKER PRO TEMPORE IN CHAIR

Rep. COTTY continued speaking.
The amendment was then adopted.

Rep. FUNDERBURK proposed the following Amendment No. 15 (Doc Name COUNCIL\BBM\9202HTC06), which was tabled:
Amend the bill, as and if amended, by adding a penultimate Part, appropriately numbered to read:

/ Part __
Joint Committee on Taxation

SECTION   1.   Section 2-41-10 of the 1976 Code is amended to read:

"Section 2-41-10.   There is established the Joint Committee on Taxation composed of nine fifteen members. The nine fifteen members must be appointed as follows:

(1)   three five Senators, three appointed by the Chairman of the Senate Finance Committee President Pro Tempore and two by the Senate minority leader;

(2)   three five members of the House of Representatives, three appointed by the Chairman of the Ways and Means Committee Speaker and two appointed by the minority leader; and

(3)   three representatives of the business community, one being a certified public accountant, five members appointed by the Governor, including members representing the business community and all other stakeholders, to include a diverse representation that has specific representation for elements of the population most unfavorably impacted by the regressivity of the sales tax.
Members of the Senate and House of Representatives serve ex officio. The committee chairman must be one of the legislative members and the vice-chairman must be one of the business community members. Both officers are to be elected by the membership of the committee. The terms of members appointed by the


Printed Page 838 . . . . . Wednesday, February 8, 2006

Governor shall be coterminous with the term of the appointing Governor."
SECTION   2.   Section 2-41-20 of the 1976 Code is amended to read:

"Section 2-41-20.   The committee must shall:

(1)   make a detailed and careful study of the revenue laws of the State, together with all other laws of the State which have a bearing upon the study of the revenue laws, and to make recommendations to the General Assembly;

(2)   provide for the revision of revenue laws so as to develop a more easily understandable and workable system of revenue laws for the State;

(3)   recommend changes in the basic tax structure of the State and in the rates of taxation, together with predicted revenue effects of the charges together with proposed alternate sources of revenue, to the end that our revenue system may be stable and equitable, and yet so fair when compared with the tax structures of other states, that business enterprises and persons would be encouraged by the economic impact of the South Carolina revenue laws to move themselves and their business enterprises into the State and that the tax structure applicable in this State meets the goals of efficiency, equity, adequacy, stability, and transparency;

(4)   recommend study of alternate sources of revenue found in the tax structures of other states, and particularly in the other southeastern states, and to make a report of the economic impact of the South Carolina tax structure upon the business enterprises of various types of industry, as compared with those of other southeastern states; and

(5)   make recommendations for long-range revenue planning and for future amendments of the revenue laws of South Carolina;

(6)   review and comment on any pending legislation on which the revenue impact statement attached to the legislation by the Board of Economic Advisors determines a revenue impact that equals at least one percent of state or local revenues in the prior fiscal year;

(7)   as it determines appropriate, review and comment on revenue impact statements prepared by the Board of Economic Advisors not subject to automatic review pursuant to item (6) of this section."
SECTION   3.   Section 2-41-60 of the 1976 Code is amended to read:

"Section 2-41-60.   The committee must shall make reports and recommendations to the General Assembly and the Governor by June 30, 2006, at which time the committee will be dissolved as it determines necessary. These findings and recommendations must be published and made available to the public."


Printed Page 839 . . . . . Wednesday, February 8, 2006

SECTION   4.   Notwithstanding any other effective date provided in this act, this Part takes effect upon approval of this act by the Governor. On that date, the terms of members serving on the Joint Committee on Taxation prior to the effective date of this Part are terminated and their successors must be appointed in the manner provided in Section 2-41-10 of the 1976 Code as amended in this Part. /
Renumber sections to conform.
Amend title to conform.

Rep. FUNDERBURK explained the amendment.
Rep. MERRILL spoke against the amendment.

Rep. MERRILL moved to table the amendment.

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 65; Nays 41

Those who voted in the affirmative are:

Altman                 Bailey                 Bannister
Bingham                Brady                  Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Hagood                 Hamilton
Hardwick               Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Mitchell               Moody-Lawrence         Norman
Owens                  Perry                  Pinson
E. H. Pitts            M. A. Pitts            Rice
Sandifer               Scarborough            Simrill
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            Stewart
Talley                 Taylor                 Toole
Townsend               Umphlett               Vaughn

Printed Page 840 . . . . . Wednesday, February 8, 2006

Viers                  Walker                 White
Whitmire               Witherspoon

Total--65

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Ballentine             Barfield
Battle                 Bowers                 Branham
Breeland               G. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Emory                  Funderburk             Govan
Haley                  Hayes                  Hodges
Hosey                  Howard                 Jefferson
Jennings               Kennedy                Mack
McLeod                 Miller                 J. H. Neal
J. M. Neal             Neilson                Ott
Rhoad                  Rivers                 Rutherford
Scott                  J. E. Smith            Thompson
Vick                   Weeks

Total--41

So, the amendment was tabled.

Rep. JEFFERSON proposed the following Amendment No. 19 (Doc Name COUNCIL\BBM\9225HTC06), which was tabled:
Amend the bill, as and if amended, Section 12-37-220(B) as found in SECTION 3, Part 1, by deleting the item in its entirety and inserting:
/ SECTION   3.   Section 12-37-220(B) of the 1976 Code, as amended by Act 161 of 2005, is further amended by adding a new item at the end appropriately numbered to read:

"( )(a)   Beginning with the year in which this item takes effect and to the extent not already exempt pursuant to Sections 12-37-250 and 12-37-251, one hundred percent of the fair market value, up to three hundred fifty thousand dollars, of owner-occupied residential property eligible for and receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) is exempt from all property taxes imposed for other than the repayment of general obligation debt.


Printed Page 841 . . . . . Wednesday, February 8, 2006

(b)   Notwithstanding any other provision of law, property exempted from property tax in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State." /
Renumber sections to conform.
Amend title to conform.

Rep. JEFFERSON explained the amendment.

Rep. MERRILL moved to table the amendment.

Rep. J. H. NEAL demanded the yeas and nays which were taken, resulting as follows:

Yeas 65; Nays 39

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Hagood                 Haley
Hamilton               Hardwick               Harrison
Haskins                Hinson                 Hiott
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Norman                 Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            Stewart
Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Viers                  Walker
White                  Whitmire

Total--65


Printed Page 842 . . . . . Wednesday, February 8, 2006

Those who voted in the negative are:
Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Bowers                 Branham                Breeland
G. Brown               R. Brown               Clyburn
Cobb-Hunter            Emory                  Funderburk
Govan                  Hayes                  Hodges
Hosey                  Jefferson              Jennings
Kennedy                Mack                   Miller
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Ott
Parks                  Rhoad                  Rice
Rivers                 Rutherford             Scott
J. E. Smith            Vick                   Weeks

Total--39

So, the amendment was tabled.

Rep. COBB-HUNTER proposed the following Amendment No. 20 (Doc Name COUNCIL\GJK\20831SD06), which was adopted:
Amend the bill, as and if amended, by striking SECTION 7, Part I, and inserting:
/SECTION   7.   (A)   The sales tax exemptions in Section 12-36-2120 of the 1976 Code shall be reviewed by the General Assembly at its 2010 session and at its sessions every ten years thereafter.

(B)(1)   There is established the Joint Sales Tax Exemptions Review Committee composed of seven members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee, one of whom must be a member of the minority party; and one of whom must be the Governor or the Governor's appointee who shall serve at the Governor's pleasure. The committee shall elect a chairman and vice chairman from among its members. All legislative members shall serve ex officio. The committee shall assist the General Assembly in performing its duties under the provisions of subsection (A) in addition to its duties required by this subsection.

(2)   In carrying out its responsibilities under this act, the committee shall:


Printed Page 843 . . . . . Wednesday, February 8, 2006

(a)   make a detailed and careful study of the State's sales tax exemptions, comparing South Carolina laws to other states;

(b)   publish a comparison of the State's sales tax exemptions to other states' laws;

(c)   recommend changes, and recommend introduction of legislation when appropriate;

(d)   submit reports and recommendations annually to the Governor and the General Assembly regarding sales tax exemptions.

(3)   In carrying out its responsibilities under this act, the committee may:

(a)   hold public hearings;

(b)   receive testimony of any employee of the State or any other witness who may assist the committee in its duties;

(c)   call for assistance in the performance of its duties from any employee or agency of the State.

(4)   The committee may adopt by majority vote rules not inconsistent with this act that it considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Revenue. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee./
Renumber sections to conform.
Amend title to conform.

Rep. COBB-HUNTER explained the amendment.
The amendment was then adopted.

Rep. MCGEE proposed the following Amendment No. 21 (Doc Name COUNCIL\GJK\20832SD06):
Amend the bill, as and if amended, in Part IV by adding a new SECTION appropriately numbered to read:
/SECTION   ____.   Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007.   /


Printed Page 844 . . . . . Wednesday, February 8, 2006

Renumber sections to conform.
Amend title to conform.

Rep. MCGEE explained the amendment.

POINT OF ORDER

Rep. SCOTT raised the Point of Order that Amendment No. 21 was out of order in that it was not germane to the Bill.
SPEAKER PRO TEMPORE W. D. SMITH overruled the Point of Order.

Rep. MCGEE continued speaking.

SPEAKER IN CHAIR

Rep. MERRILL moved to adjourn debate on the amendment, which was agreed to.

Reps. COBB-HUNTER, J. E. SMITH, ANDERSON and MITCHELL proposed the following Amendment No. 23 (Doc Name COUNCIL\GJK\20833SD06), which was tabled:
Amend the bill, as and if amended, by adding a new SECTION, Part II, appropriately numbered to read:
/SECTION   ___.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3565.   (A)(1)   There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 an amount equal to ten percent, but not more than seven hundred fifty dollars on one return, of rent paid by a resident individual taxpayer during the taxable year for the taxpayer's residence. No credit may be claimed unless the taxpayer paid rent for occupying a residence in this State during each month of the taxable year for which the credit is claimed. No credit may be claimed for rent paid or contributions for expenses in lieu of rent for occupying a residence assessed for property tax purposes pursuant to Section 12-43-220(c) or rent paid for subletting a residence. Unused credit must be refunded to the taxpayer.

(2)   The credit allowed by this subsection may be claimed by means of a form prescribed by the department filed with the taxpayer's South Carolina individual income tax return that must contain the information and documentation determined necessary by the department for the administration of this credit. If the taxpayer is not


Printed Page 845 . . . . . Wednesday, February 8, 2006

required to file a South Carolina individual income tax return, the credit may be claimed by means of a separate form prescribed by the department which for purposes of filing and enforcement is deemed a South Carolina individual income tax return.

(B)   An amount equal to the credits allowed pursuant to this section must be transferred to the general fund of the State from the Homestead Exemption Fund."/
Renumber sections to conform.
Amend title to conform.

Rep. COBB-HUNTER explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 72; Nays 40

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Battle                 Bingham
Brady                  Cato                   Ceips
Chellis                Clark                  Clemmons
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Frye                   Hagood
Haley                  Hardwick               Harrell
Harrison               Haskins                Herbkersman
Hinson                 Hiott                  Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Lucas                  Mahaffey
Martin                 McCraw                 McGee
Merrill                Norman                 Owens
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Rice                   Rivers
Sandifer               Scarborough            Scott
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson
Toole                  Townsend               Tripp

Printed Page 846 . . . . . Wednesday, February 8, 2006

Umphlett               Vaughn                 Viers
Walker                 White                  Witherspoon

Total--72

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Bowers
Branham                Breeland               G. Brown
R. Brown               Chalk                  Coates
Cobb-Hunter            Coleman                Emory
Funderburk             Govan                  Hamilton
Hayes                  Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                Mack                   McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rhoad
Rutherford             J. E. Smith            Vick
Weeks

Total--40

So, the amendment was tabled.

Rep. OTT proposed the following Amendment No. 26 (Doc Name COUNCIL\AGM\18103MM06), which was tabled:
Amend the bill, as and if amended, Section 12-37-220(B)( )(a) as found in SECTION 3, Part 1, by inserting after / debt / the following words / ; except that the owner must have been in residence in South Carolina for at least three years before his owner-occupied residential property is eligible for this exemption / .
Renumber sections to conform.
Amend title to conform.

Rep. OTT explained the amendment.

Rep. COOPER moved to table the amendment.


Printed Page 847 . . . . . Wednesday, February 8, 2006

Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:

Yeas 71; Nays 36

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Battle                 Bingham
Bowers                 Brady                  Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Cooper
Cotty                  Dantzler               Davenport
Delleney               Duncan                 Edge
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Herbkersman            Hinson                 Hiott
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Lucas
Mahaffey               Martin                 McCraw
Merrill                Mitchell               Moody-Lawrence
Norman                 Owens                  Perry
Pinson                 E. H. Pitts            Sandifer
Scarborough            Simrill                Sinclair
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Townsend               Tripp
Umphlett               Vaughn                 Viers
Walker                 Weeks                  White
Whitmire               Witherspoon

Total--71

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Branham
Breeland               G. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Frye                   Funderburk             Govan
Hayes                  Hodges                 Hosey
Jefferson              Jennings               Kennedy
Mack                   McLeod                 Miller

Printed Page 848 . . . . . Wednesday, February 8, 2006

J. H. Neal             Neilson                Ott
Parks                  M. A. Pitts            Rhoad
Rice                   Rutherford             Scott
J. E. Smith            Toole                  Vick

Total--36

So, the amendment was tabled.

Rep. OTT proposed the following Amendment No. 29 (Doc Name COUNCIL\AGM\18088MM06), which was tabled:
Amend the bill, as and if amended, Section 12-36-1110, as contained in SECTION 1, Part 1, by deleting the Section in its entirety and inserting:
/ "Section 12-36-1110.   Beginning on the first day of June of the year in which this section takes effect, an additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter, except that this additional one percent tax does not apply to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients, nor does this additional tax apply to items subject to a maximum sales and use tax pursuant to Section 12-36-2110. Moreover, this additional tax does not apply to unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons, but does apply to any local sales and use tax imposed or enacted before May thirty-first of the year in which this item takes effect that is administered by the Department of Revenue which does not contain a specific exemption with respect to food items." /
Amend the bill, further by Section 11-11-155(2), as contained in SECTION 2, Part 1, by deleting the item in its entirety and inserting:
/ (2)   There is established in the State Treasury the Homestead Exemption Fund Reserve (Reserve) as a fund separate and distinct from the Homestead Exemption Fund, the general fund of the State, and all other funds. Any revenue received from the imposition of the one percent additional sales and use tax imposed pursuant to Section 12-36-1110 for a fiscal year above what the Board of Economic Advisors estimated for that fiscal year must be transferred into the Reserve.
Establishing this Reserve in the required amount is the second priority use of Homestead Exemption Fund revenues in a fiscal year. Balances in the Reserve at the end of a fiscal year remain in this


Printed Page 849 . . . . . Wednesday, February 8, 2006

Reserve. If revenues in the Homestead Exemption Fund available for reimbursements in a fiscal year are less than that amount as estimated by the Board of Economic Advisors for the fiscal year, the State Budget and Control Board must first apply so much of the Reserve as is necessary or available to offset the deficit before the balance may be paid from the state general fund. Secondly, to the extent monies are available in the Reserve after any transfers to the Homestead Exemption Fund to offset a deficit, these monies shall then be transferred by the Budget and Control Board to the state general fund, first, to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund, and secondly, as an exemption from the sales tax on food as provided in Section 12-36-2120. /
Amend the bill, further by Section 11-11-155(1), as contained in SECTION 2, Part 1, is amended by deleting the item in its entirety and inserting:
/ (1)   For each fiscal year in which and after which this section takes effect, the revenue from the tax imposed pursuant to Section 12-36-1110, and an amount equal to the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270, attributable to the millage levied for school operations in fiscal year 2005-2006, is automatically credited to a fund separate and distinct from the state general fund known as the 'Homestead Exemption Fund'. The Board of Economic Advisors shall account for the Homestead Exemption Fund revenue separately from general fund revenues, and the board shall make an annual estimate of the receipts by the Homestead Exemption Fund by February fifteenth of each year. This estimate shall be transmitted to the State Treasurer, Comptroller General, and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee. No portion of these revenues may be credited to the Education Improvement Act (EIA) Fund. /
Amend the bill, further by Section 12-36-2120, as contained in SECTION 1B of Part 1, by inserting before / unprepared foods / the words / in an amount determined by and to the extent to which funds are available from the Homestead Exemption Fund Reserve as provided in Section 11-11-155(2), a percentage, up to two percent, of the gross proceeds of the sale or sale price of / .
Amend the bill further, as and if amended, by deleting SECTION 3, Part 1, and inserting:

Printed Page 850 . . . . . Wednesday, February 8, 2006

/ SECTION   3.   Chapter 37 of Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253.   (A)   After the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251, any remaining fair market value of property classified pursuant to Section 12-43-220(c) otherwise subject to tax is exempt from all school taxes except taxes levied:

(1)   for bonded indebtedness for capital construction for schools;

(2)   to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction for schools;

(3)   no other millage for school operations may be levied by any school district beginning with calendar year 2007. Districts which violate this provision shall have its allocation from the Education Finance Act in the ensuing year reduced accordingly.

(B)   School districts must be reimbursed quarterly on or after January 1, 2008, from revenues credited to the Homestead Exemption Fund for the revenue lost as a result of the exemption allowed by this section beginning with calendar year 2007 in an amount provided by law.

(C)   Homestead Exemption Trust Fund revenues that are to be paid to school districts comprise the total of the following amounts:

(1)   the revenue from the taxes imposed pursuant to Section 12-36-1110; and

(2)   an amount equal to the total reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006 attributable to school operating millage.

(D)   Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State.

(E)   The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations." /
Amend the bill further, as and if amended, by deleting subsection C. and D. of SECTION 5, Part I, and by deleting / 12-37-251, 12-37-270, / in subsection E. of SECTION 5, Part I.
Amend further, as and if amended, by deleting Part II of the bill in its entirety and inserting:


Printed Page 851 . . . . . Wednesday, February 8, 2006

/ Part II
Distribution of Revenues and Millage Limitations

SECTION   1.   (A)(1)   For the period January through December 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed pursuant to Section 12-37-253 of the 1976 Code in Part I of this act during that period dollar for dollar. The Comptroller General shall pay these reimbursements on or after January 1, 2008, upon application of the school district.

(2)   Beginning January 1, 2008, school districts of this State must be reimbursed from the Homestead Exemption Fund for the taxes not collected because of the property tax exemption allowed pursuant to Section 12-37-253 of the 1976 Code in Part I of this act in the manner provided in this item. The Comptroller General shall pay these reimbursements upon application of the school district and the reimbursement shall be equal to the amount distributed in the previous year plus the reimbursement increases provided for in subsection (B). The reimbursement increases of the several school districts as provided in subsection (B) for any year shall be aggregated and the reimbursement increase a particular school district shall receive for that year shall be equal to an amount that is the school district's proportionate share of such funds based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act. No school district shall receive less in reimbursements beginning in 2008 than it received in 2007.

(B)   Beginning with the 2008 reimbursements to school districts of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Distribution of these reimbursement increases shall be as provided in subsection (A) of this section.

(C)   The percentage of population growth in any year for any school district entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the school district is located as determined by the Office of Research and Statistics of the Budget and Control. Where the


Printed Page 852 . . . . . Wednesday, February 8, 2006

school district encompasses areas in more than one county, the population growth in that district shall be the average of the growth in each county weighted to reflect the existing population of the school district in that county as compared to the existing population of the school district as a whole.
SECTION   2.   Beginning June 1, 2007, funds derived from a one percent local sales tax or local option sales tax imposed in a jurisdiction pursuant to state or local law which are used to reduce ad valorem property taxes for school operating purposes imposed on owner-occupied residential property, must be thereafter applied on a pro-rata basis to reduce ad valorem property taxes on all other classes of property.
SECTION   3.   To the extent revenues in the Homestead Exemption Fund are insufficient to pay all reimbursements required by law, the difference must be paid from the state general fund.
SECTION   4.   Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-56.   Beginning with the year 2007, a school district may increase ad valorem property tax millage on all classes of real and personal property for general operating purposes, except owner-occupied residential property, above that levied for the previous year by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the Budget and Control Board. Any millage increase above this limitation requires a supermajority vote of the governing body of the district entitled to levy property taxes defined as an affirmative vote by seventy-five percent of the total membership of the governing body of the district. Seventy-five percent of the total membership of the governing body of the district must be determined without rounding a fractional number into a whole number for the purpose of computing the required vote total." /
Renumber sections to conform.
Amend title to conform.

Rep. OTT explained the amendment.
Rep. EMORY spoke in favor of the amendment.
Rep. BOWERS spoke in favor of the amendment.


Printed Page 853 . . . . . Wednesday, February 8, 2006

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 65; Nays 42

Those who voted in the affirmative are:

Altman                 Bailey                 Bannister
Battle                 Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Cooper                 Cotty
Dantzler               Davenport              Delleney
Duncan                 Hagood                 Haley
Hamilton               Harrell                Herbkersman
Hinson                 Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McCraw                 McGee
Merrill                Mitchell               Norman
Owens                  Perry                  Pinson
E. H. Pitts            M. A. Pitts            Sandifer
Scarborough            Simrill                Sinclair
G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  Walker                 White
Whitmire               Witherspoon

Total--65

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Ballentine             Barfield
Bowers                 Branham                Breeland
R. Brown               Coates                 Cobb-Hunter
Coleman                Emory                  Frye
Funderburk             Govan                  Hayes
Hiott                  Hodges                 Hosey
Jefferson              Jennings               Kennedy

Printed Page 854 . . . . . Wednesday, February 8, 2006

Mack                   McLeod                 Miller
J. H. Neal             J. M. Neal             Neilson
Ott                    Parks                  Rhoad
Rice                   Rivers                 Rutherford
Scott                  Skelton                D. C. Smith
J. E. Smith            Vick                   Weeks

Total--42

So, the amendment was tabled.

Rep. Ott proposed the following Amendment No. 30 (Doc Name COUNCIL\GJK\20822SD06), which was adopted:
Amend the bill, as and if amended, by striking subsection (A) of SECTION 2, Part II, and inserting:
/(A)   For purposes of determining reimbursements to property taxing entities including school districts for taxes not collected because of the property tax exemption allowed in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act, ad valorem property tax revenue of a property taxing entity not collected as a result of a one percent local option sales tax or local sales tax imposed in the entity pursuant to state or local law shall nevertheless be considered collected for purposes of determining reimbursements under Part II of this act.   /
Renumber sections to conform.
Amend title to conform.

Rep. OTT explained the amendment.
Rep. LUCAS spoke in favor of the amendment.
Rep. COTTY spoke against the amendment.

Rep. COTTY moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 37; Nays 71

Those who voted in the affirmative are:

Altman                 Barfield               Cato
Ceips                  Chellis                Clemmons
Cooper                 Cotty                  Dantzler

Printed Page 855 . . . . . Wednesday, February 8, 2006

Davenport              Edge                   Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Herbkersman
Hinson                 Leach                  Limehouse
Loftis                 Mahaffey               Martin
E. H. Pitts            Sandifer               Sinclair
G. R. Smith            J. R. Smith            Talley
Townsend               Umphlett               Vaughn
Viers                  Walker                 White
Witherspoon

Total--37

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Ballentine             Bannister
Bingham                Bowers                 Brady
Branham                Breeland               R. Brown
Chalk                  Clark                  Clyburn
Coates                 Cobb-Hunter            Coleman
Delleney               Duncan                 Emory
Frye                   Funderburk             Govan
Hagood                 Hayes                  Hiott
Hodges                 Hosey                  Huggins
Jefferson              Jennings               Kennedy
Kirsh                  Littlejohn             Lucas
Mack                   McCraw                 McGee
McLeod                 Merrill                Miller
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Norman
Ott                    Owens                  Parks
Perry                  Pinson                 M. A. Pitts
Rhoad                  Rice                   Rivers
Rutherford             Scarborough            Scott
Simrill                Skelton                D. C. Smith
G. M. Smith            J. E. Smith            Stewart
Taylor                 Thompson               Toole
Vick                   Weeks

Total--71


Printed Page 856 . . . . . Wednesday, February 8, 2006

So, the House refused to table the amendment.

The question then recurred to the adoption of the amendment, which was agreed to.

Rep. COBB-HUNTER proposed the following Amendment No. 35 (Doc Name COUNCIL\GJK\20834SD06), which was tabled:
Amend the bill, as and if amended, by adding a new Part immediately before Part IV to read:

/ Part ___
Sales Tax Cap Eliminated on Motor Vehicles; New Sales Tax on
Motor Vehicles; Use of Funds

SECTION   1.   Section 12-36-2110(A)(2) of the 1976 Code is amended to read:

"(2)   MOTOR VEHICLE; Reserved"
SECTION   2.   Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2111.   Notwithstanding any other provision of law, on the effective date of this section, no sales and use tax shall be applied or charged to the first ten thousand dollars of the adjusted sale price of a motor vehicle. A sales and use tax of one percent applies to all of the adjusted sales price of a motor vehicle exceeding ten thousand dollars. After the appropriate offsets for the Education Improvement Act (EIA) fund and any other offsets required by law, the remainder of the tax revenue generated by this section shall be deposited in a special fund and used to pay for the income tax credit for renters provided for in Section 12-6-3565."
SECTION   3.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3565.   (A)(1)   There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 an amount equal to ten percent, but not more than seven hundred fifty dollars on one return, of rent paid by a resident individual taxpayer during the taxable year for the taxpayer's residence. No credit may be claimed unless the taxpayer paid rent for occupying a residence in this State during each month of the taxable year for which the credit is claimed. No credit may be claimed for rent paid or contributions for expenses in lieu of rent for occupying a residence assessed for property tax purposes pursuant to Section 12-43-220(c) or rent paid for subletting a residence. Unused credit must be refunded to the taxpayer.


Printed Page 857 . . . . . Wednesday, February 8, 2006

(2)   The credit allowed by this subsection may be claimed by means of a form prescribed by the department filed with the taxpayer's South Carolina individual income tax return that must contain the information and documentation determined necessary by the department for the administration of this credit. If the taxpayer is not required to file a South Carolina individual income tax return, the credit may be claimed by means of a separate form prescribed by the department which for purposes of filing and enforcement is deemed a South Carolina individual income tax return.

(B)   The income tax credits provided for in this section shall be paid from the special motor vehicle sales tax fund established in Section 12-36-2111 with any deficit to be paid from the state general fund."
SECTION   4.   This part takes effect July 1, 2007. /
Renumber sections to conform.
Amend title to conform.

Rep. COBB-HUNTER explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 74; Nays 29

Those who voted in the affirmative are:

Altman                 Anthony                Bailey
Bales                  Ballentine             Bannister
Barfield               Battle                 Bingham
Brady                  Cato                   Ceips
Chellis                Clark                  Clemmons
Coates                 Cooper                 Cotty
Dantzler               Davenport              Delleney
Edge                   Emory                  Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Hayes                  Hinson                 Hiott
Huggins                Jennings               Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
McCraw                 McGee                  Merrill

Printed Page 858 . . . . . Wednesday, February 8, 2006

Mitchell               J. M. Neal             Neilson
Perry                  Pinson                 E. H. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Thompson               Toole
Umphlett               Vaughn                 Vick
Viers                  Walker                 White
Whitmire               Witherspoon

Total--74

Those who voted in the negative are:

Agnew                  Anderson               Bowers
Breeland               G. Brown               R. Brown
Chalk                  Clyburn                Cobb-Hunter
Coleman                Duncan                 Frye
Herbkersman            Hodges                 Hosey
Jefferson              Kennedy                Mack
Martin                 McLeod                 Moody-Lawrence
J. H. Neal             Norman                 Owens
Parks                  M. A. Pitts            Rhoad
Rivers                 Weeks

Total--29

So, the amendment was tabled.

Rep. W. D. SMITH proposed the following Amendment No. 37 (Doc Name COUNCIL\BBM\9228HTC06), which was adopted:
Amend the bill, as and if amended, by inserting immediately before Part III:

/ Part II A
Spending Limits

SECTION   1.   Article 5, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-415.   (A)   Except when a lower spending limit applies pursuant to Section 11-11-410, State appropriations for a fiscal year may not exceed appropriations authorized by the spending limitation prescribed in this section. State appropriations subject to the


Printed Page 859 . . . . . Wednesday, February 8, 2006

spending limitation are those appropriations authorized annually in the annual general appropriations act and any supplemental appropriations acts or joint resolutions for that fiscal year which fund general purposes. A statement of total 'General Revenues' must be included in the annual general appropriations act. As used in this section the appropriations limited as defined in this subsection must be those funded by 'General Revenues' as defined in the general appropriations act for fiscal year 2007-2008. All additional nonfederal and nonuser fee revenue items must be included in that category as they may be created by act of the General Assembly.

(B)(1)   The limitation on State appropriations for a fiscal year as provided in subsection (A) is the greater of:

(a)   base-year appropriations increased by a percentage equal to the annual percentage increase in state personal income for the most recently completed calendar year for which this figure is available; or

(b)   base-year appropriations increased by a percentage equal to the state's growth in population applied ratably over the period of the decennial United States census assuming a rate of increase equal to the rate in the most recently completed United States census for which population figures are available over the next preceding census and a percentage equal to the increase, if any, in the consumer price index in the most recently ended calendar year, as determined by the Bureau of Labor Statistics of the United States Department of Labor.

(2)   As used in this subsection:

(a)   'base-year appropriations' means general fund appropriations for the current fiscal year as of February fifteenth, including both recurring and nonrecurring revenues from whatever source derived and regardless of the time the appropriations are effective except that appropriations for the Capital Reserve Fund are not included in base-year appropriations. This general fund total must be adjusted to reflect any mid-year appropriations reductions, however imposed, made, or scheduled as of February fifteenth; and

(b)   'state personal income' means total personal income for a calendar year as determined by the Office of State Budget of the State Budget and Control Board based on the most recent data provided by the United States Department of Commerce.

(3)   The Office of Research and Statistics of the State Budget and Control Board, upon approval by the State Economist and in consultation with the director of the board's Office of State Budget, shall calculate and provide the appropriate percentages for population, consumer price index, and state personal income growth to the Ways


Printed Page 860 . . . . . Wednesday, February 8, 2006

and Means Committee of the House of Representatives and the Senate Finance Committee no later than February fifteenth of each year.

(C)   The Comptroller General shall notify the Governor, the Speaker of the House, and the President Pro Tempore of the Senate if the spending limit as contained in this section is exceeded. The General Assembly shall then take corrective action immediately upon meeting in the next regular session or a special session called for that purpose. This subsection does not apply to funds transferred from the general reserve fund to the general fund.

(D)   Notwithstanding the provisions of subsection (A) of this section, the General Assembly may suspend the spending limitation for a fiscal year for a specific amount by a special vote as provided in this subsection by enactment of legislation.

The special vote referred to in this subsection means an affirmative recorded roll-call vote in each branch of the General Assembly by at least two-thirds of the total membership in each branch."
SECTION   2.   Article 3, Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-335.   (A)   The spending limit imposed on a local governing body pursuant to this section is in addition to and not in lieu of any other limit on spending or on the taxing power of a local governing body. Where a limit on spending by or on the taxing power of a local governing body imposed by the Constitution of this State or by general or local laws of this State imposes any limit resulting in a more restrictive spending limit than the limit imposed pursuant to this section, the more restrictive limit applies.

(B)   The limit on all appropriations for a fiscal year by a local governing body, except for appropriations to service general obligation debt or for the purposes provided in Section 6-1-320(B) is the greater of:

(1)   base-year appropriations increased by a percentage equal to the annual percentage increase in state personal income for the most recently completed calendar year for which this figure is available; or

(2)   base-year appropriations increased by a percentage equal to the jurisdiction's growth in population applied ratably over the period of the decennial United States census assuming a rate of increase equal to the rate in the most recently completed United States census for which population figures are available over the next preceding census and a percentage equal to the increase, if any, in the consumer price index in the most recently ended calendar year, as


Printed Page 861 . . . . . Wednesday, February 8, 2006

determined by the Bureau of Labor Statistics of the United States Department of Labor. For a school district, the population increase portion of this calculation is replaced by the actual annual increase in the student enrollment for the most recent year for which that figure is available for the district.

(C)   As used in this section:

(1)   'base-year appropriations' means appropriations for the current fiscal year as of February fifteenth, including both recurring and nonrecurring revenues from whatever source derived and regardless of the time the appropriations are effective except for appropriations for the purposes exempt from the limit pursuant to subsection (B) of this section. This total must be adjusted to reflect any mid-year appropriations reductions, however imposed, made, or scheduled as of February fifteenth; and

(2)   'state personal income' means total personal income for a calendar year as determined by the Office of State Budget of the State Budget and Control Board based on the most recent data provided by the United States Department of Commerce.

(D)   The Office of Research and Statistics of the State Budget and Control Board, upon approval by the State Economist and in consultation with the director of the board's Office of State Budget, shall calculate and provide the appropriate percentages for population, consumer price index, and state personal income growth to the local governing body no later than February fifteenth of each year."
SECTION   3.   The provisions of this Part take effect as provided in Part IV of this act and first apply for appropriations for fiscal years beginning after June 30, 2009. /
Renumber sections to conform.
Amend title to conform.

Rep. W. D. SMITH explained the amendment.

POINT OF ORDER

Rep. J. E. SMITH raised the Point of Order that Amendment No. 37 was out of order in that it was not germane to the Bill.
SPEAKER HARRELL stated that the Bill dealt with spending caps placed on local governing bodies and the amendment dealt with spending limits on local governing bodies as well. He therefore overruled the Point of Order.

The question then recurred to the adoption of the amendment.


Printed Page 862 . . . . . Wednesday, February 8, 2006

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

Yeas 83; Nays 27

Those who voted in the affirmative are:

Altman                 Anthony                Bailey
Bales                  Ballentine             Bannister
Barfield               Battle                 Bingham
Bowers                 Brady                  Cato
Ceips                  Chellis                Clark
Clemmons               Coates                 Coleman
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Edge                   Frye                   Hagood
Haley                  Hamilton               Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Hiott
Huggins                Jennings               Kirsh
Leach                  Limehouse              Littlejohn
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Mitchell               Neilson                Norman
Owens                  Perry                  Pinson
E. H. Pitts            M. A. Pitts            Rhoad
Rice                   Rivers                 Sandifer
Scarborough            Simrill                Sinclair
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson
Toole                  Townsend               Tripp
Umphlett               Vaughn                 Vick
Viers                  Walker                 White
Whitmire               Witherspoon

Total--83

Those who voted in the negative are:

Agnew                  Anderson               Branham
Breeland               G. Brown               R. Brown
Clyburn                Cobb-Hunter            Emory
Funderburk             Govan                  Hayes

Printed Page 863 . . . . . Wednesday, February 8, 2006

Hodges                 Hosey                  Jefferson
Kennedy                Mack                   McLeod
Miller                 Moody-Lawrence         J. H. Neal
Ott                    Rutherford             Scott
Skelton                J. E. Smith            Weeks

Total--27

So, the amendment was adopted.

Reps. HAGOOD and COTTY proposed the following Amendment No. 39 (Doc Name COUNCIL\BBM\9226HTC06), which was adopted:
Amend the bill, as and if amended, in SECTION 1, Part II, by adding an appropriately lettered new subsection at the end of Section 1 to read:

/ ( )   Notwithstanding any other provision of this section, the reimbursements provided pursuant to this section apply for real property located in redevelopment project areas pursuant to the Tax Increment Financing Law and the Tax Increment Financing Act for counties and for real property subject to a redevelopment plan adopted before the effective date of this act, the reimbursements provided pursuant to this section must not be less than dollar for dollar for the duration of the plan. /
Renumber sections to conform.
Amend title to conform.

Rep. HAGOOD explained the amendment.
The amendment was then adopted.

Rep. CLEMMONS proposed the following Amendment No. 40 (Doc Name COUNCIL\BBM\9230HTC06), which was adopted:
Amend the bill, as and if amended, in Section 4-9-56(B), as contained in Part II, SECTION 4, by adding a new paragraph at the end of Section 4-9-56(B) to read:

/ If a property taxing entity does not increase millage by the maximum millage increase allowed pursuant to this subsection without a supermajority vote, the difference between the millage rate actually imposed and the maximum millage that could have been imposed for that year without a supermajority vote is deemed 'unused' millage.

In calculating the maximum annual millage increase that may be imposed without a supermajority vote, there must be added to the


Printed Page 864 . . . . . Wednesday, February 8, 2006

otherwise applicable total any unused millage from the preceding two tax years. /
Renumber sections to conform.
Amend title to conform.

Rep. CLEMMONS explained the amendment.

The question then recurred to the adoption of the amendment.

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

Yeas 54; Nays 53

Those who voted in the affirmative are:

Agnew                  Anthony                Bailey
Ballentine             Bannister              Barfield
Battle                 Bingham                Bowers
Brady                  Branham                Ceips
Chellis                Clark                  Clemmons
Cooper                 Cotty                  Dantzler
Edge                   Emory                  Frye
Funderburk             Hagood                 Haley
Hardwick               Harrell                Haskins
Herbkersman            Hinson                 Huggins
Limehouse              Littlejohn             Lucas
Mahaffey               McGee                  McLeod
Merrill                J. M. Neal             Ott
Owens                  Parks                  Pinson
E. H. Pitts            Rhoad                  Rivers
Sandifer               Sinclair               Skelton
Toole                  Umphlett               Vaughn
Viers                  Whitmire               Witherspoon

Total--54

Those who voted in the negative are:

Altman                 Anderson               Bales
Breeland               G. Brown               Cato
Clyburn                Coates                 Coleman
Davenport              Delleney               Duncan
Govan                  Hamilton               Hayes

Printed Page 865 . . . . . Wednesday, February 8, 2006

Hodges                 Hosey                  Howard
Jefferson              Jennings               Kirsh
Leach                  Loftis                 Mack
Martin                 McCraw                 Miller
Mitchell               Moody-Lawrence         J. H. Neal
Neilson                Norman                 Perry
M. A. Pitts            Rice                   Rutherford
Scarborough            Scott                  Simrill
D. C. Smith            G. M. Smith            G. R. Smith
J. E. Smith            J. R. Smith            Stewart
Talley                 Taylor                 Thompson
Townsend               Vick                   Walker
Weeks                  White

Total--53

So, the amendment was adopted.

Rep. Govan proposed the following Amendment No. 42 (Doc Name COUNCIL\GJK\20839SD06), which was tabled:
Amend the bill, as and if amended, in SECTION 3, Part I, by striking item (a) of the unnumbered subsection added to Section 12-37-220(B) of the 1976 Code and inserting:
/   (a)   Beginning with the year in which this item takes effect and to the extent not already exempt pursuant to Section 12-37-250, one hundred percent of the fair market value of owner-occupied residential property eligible for and receiving the special assessment ratio allowed owner-occupied residential property pursuant to Section 12-43-220(c) up to a fair market value of two hundred fifty thousand dollars is exempt from all property taxes imposed for other than the repayment of general obligation debt. /
Amend the bill further, as and if amended, by adding a new SECTION to Part I, immediately after SECTION 3 to read:
/SECTION   ____.   The 1976 Code is amended by adding:

"Section 12-37-455.   (1)   Beginning with calendar year 2007, there is allowed as a credit against property taxes imposed against a personal motor vehicle an amount equal to ten percent, but not more than two hundred dollars to be paid from the Homestead Exemption Fund established in Section 11-11-155.

(2)   The credit allowed by this section may be claimed by means of a form prescribed by the Department of Revenue filed with


Printed Page 866 . . . . . Wednesday, February 8, 2006

the local county treasurer's and assessor's offices containing the information and documentation determined necessary by the department for the administration of this credit.

(3)   Counties and municipalities shall be reimbursed for the amount of these credits granted each year in that jurisdiction beginning with the year 2007 from the Homestead Exemption Fund."/
Renumber sections to conform.
Amend title to conform.

Rep. GOVAN explained the amendment.

SPEAKER PRO TEMPORE IN CHAIR

Rep. GOVAN continued speaking.
Rep. SIMRILL spoke against the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 70; Nays 19

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Battle
Bingham                Brady                  Branham
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Coates                 Coleman                Cooper
Cotty                  Davenport              Delleney
Duncan                 Emory                  Frye
Hagood                 Haley                  Hamilton
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Huggins
Kirsh                  Leach                  Limehouse
Littlejohn             Lucas                  Mahaffey
McCraw                 McGee                  Merrill
Neilson                Norman                 Owens
Perry                  E. H. Pitts            Rice
Sandifer               Scarborough            Simrill
Sinclair               Skelton                D. C. Smith

Printed Page 867 . . . . . Wednesday, February 8, 2006

G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Umphlett               Vaughn
Viers                  Walker                 White
Whitmire

Total--70

Those who voted in the negative are:

Bowers                 Breeland               Clyburn
Funderburk             Govan                  Hodges
Hosey                  Howard                 Jefferson
Mack                   McLeod                 Moody-Lawrence
J. H. Neal             Ott                    Rhoad
Rivers                 Scott                  J. E. Smith
Weeks

Total--19

So, the amendment was tabled.

Rep. J. E. SMITH proposed the following Amendment No. 43 (Doc Name COUNCIL\GJK\20797SD06), which was tabled:
Amend the bill, as and if amended, by inserting a new Part after Part III appropriately numbered to read:

/ Part __
Circuit Breaker

SECTION   1.   Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Article 25
Homestead Property Tax Credit

Section 12-37-3310.   As used in this article:

(1)   'Gross household income' means all income, for all individuals residing within the household, from whatever source derived in a taxable year including, but not limited to:

(a)   compensation for services including fees, commissions, and similar items;

(b)   gross income derived from dealings in property;

(c)   gains derived from dealings in property;

(d)   interest;


Printed Page 868 . . . . . Wednesday, February 8, 2006

(e)   rents;

(f)   royalties;

(g)   dividends;

(h)   alimony;

(I)   income from life insurance and endowment contracts;

(j)     annuities;

(k)   pensions;

(l)     income from discharge of indebtedness;

(m)   distributive share of partnership gross income;

(n)   income from an interest in an estate or trust; and

(o)   federal old age, survivor, or disability benefits.

(2)   'Household' means an individual or group of individuals living together in a room or group of rooms as a housing unit.

(3)   'Claimant' means a person who files a claim for property tax relief under this article who is eligible to claim the homestead exemption allowed pursuant to Section 12-37-250 and who meets the gross household income requirements of Section 12-37-3370.

(4)   'Property taxes accrued' means property taxes, exclusive of special assessments, penalties, and charges for service, levied on a claimant's homestead in this State in a year.

Section 12-37-3320.   The property tax credits accruing under this article for the benefit of any taxpayer must be paid from the Homestead Exemption fund established in Section 11-11-155.

Section 12-37-3330.   The right to file a claim under this article is personal to the claimant and does not survive the claimant's death, but the right may be exercised on behalf of a claimant by the claimant's legal guardian or attorney-in-fact.

Section 12-37-3340.   Subject to limitations provided in this article, a claimant may claim in a year as a credit against property taxes accrued a percentage of the property taxes accrued in the preceding calendar year. Credits allowed pursuant to this article are not refunded to the taxpayer, but instead are paid as provided in Section 12-37-3430.

Section 12-37-3350.   No claim with respect to property taxes accrued may be paid or is allowed, unless the claim is filed with the Department of Revenue on or before the due date, without regard to any extension, for filing the South Carolina individual income tax return for the tax year with respect to which the claim for credit is made. In case of sickness, absence, or other disability, or for other good cause shown, the department may extend for not more than six months the time for filing a claim.


Printed Page 869 . . . . . Wednesday, February 8, 2006

Section 12-37-3360.   Only one claimant a household a year is entitled to the credit allowed by this article.

Section 12-37-3370.   (A)   The amount of a claim made pursuant to this article is determined as provided in subsection (B) of this section except that the total credit for a property tax year may not exceed twenty-five thousand dollars.

(B)   For a property tax year a claimant is allowed a property tax credit in the amount by which the accrued property tax on the homestead exceeds a percentage of the claimant's gross household income for the taxable year determined according to the following schedule:
If Gross Household                 Then the Taxpayer is Entitled
Income (Rounded to                 to Credit for Property Tax
the Nearest Income)                 Accrued in Excess of this
is:                               Percent of that Income.
$ 0 - 9,999                       1.0%
10,000-14,999                     1.5%
15,000-19,999                     2.0%
20,000-24,999                     2.5%
25,000-29,999                     3.0%
30,000-34,999                     3.5%
35,000-39,999                     4.0%
40,000-44,999                     4.5%
45,000-49,999                     5.0%
50,000-54,999                     5.5%
55,000-59,999                     6.0%
60,000-64,999                     6.5%
65,000-69,999                     7.0%
70,000-74,999                     7.5%
75,000-79,999                     8.0%
80,000-84,999                     8.5%
85,000-89,999                     9.0%
90,000-94,999                     9.5%
95,000-99,999                     10.0%
100,000 or more                   no credit

(C)   The department shall prepare a table under which claims under this article must be determined. The amount of claim as shown in this table for each bracket must be computed only to the nearest dollar.

Section 12-37-3380.   (A)   The department shall prescribe and make available suitable forms with instructions for claimants, including


Printed Page 870 . . . . . Wednesday, February 8, 2006

a form that must be included with the individual income tax return or separate from the individual income tax return if it contains the certification required pursuant to Subsection (B) of this section. The form must include the table required pursuant to Section 12-37-3370(C).

(B)   The claim must be in the form the department prescribes. Those claimants who certify on the prescribed form that they are not required to file a state individual income tax return.

Section 12-37-3390.   Every claimant under this article shall supply the department, in support of the claim, a copy of the applicable property tax notice and other information and documentation it determines necessary for the implementation of this article.

Section 12-37-3400.   If on the audit of a claim filed under this article the department determines the amount to have been incorrectly determined, the claim must be corrected. The amount of the property tax credit disallowed or paid in error may be recovered by assessment as income taxes are assessed with applicable interest allowed by Section 12-54-25.

Section 12-37-3410.   No claim for relief under this article is allowed to a person who is a recipient of public funds for the payment of the property taxes accrued during the period for which the claim is filed.

Section 12-37-3420.   A claim must be disallowed if the department finds that the claimant received title to his homestead primarily for the purpose of receiving benefits under this article.
Section 12-37-3430.   The department shall remit the amount of credit allowed a taxpayer pursuant to this article to the county treasurer of the county in which the homestead is situated. The amount of this credit is deemed timely paid property tax The taxpayer shall remit the balance of property taxes accrued in the manner provided by law together with a copy of the claim filed with the Department of Revenue."
SECTION   2.   Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-183.   Taxes on property receiving or eligible to receive the homestead exemption allowed pursuant to Section 12-37-250 are due and payable beginning the thirtieth day of September through the fifteenth day of April after their assessment in each year. If the taxes and assessments on any portion of the taxes and assessments charged against any property receiving or eligible to receive the homestead exemption allowed pursuant to Section


Printed Page 871 . . . . . Wednesday, February 8, 2006

12-35-250 have not been paid for the property tax year before the later of the sixteenth day of April or thirty days after the mailing of tax notices, the county auditor shall add a penalty of three percent to the taxes and assessment due and the county treasurer shall collect the penalty. If the taxes, assessments, and penalty are not paid before the second day of the next May, an additional penalty of seven percent must be added to the taxes and assessments by the county auditor and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of the next June, an additional penalty of five percent must be added by the county auditor to the taxes and assessments and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of July, the taxes go into execution as provided in Section 12-45-180, and must be collected as provided in Chapter 51 of this title, mutatis mutandis, except that the April first date provided in Section 12-51-40(a) is deemed to be August first."
SECTION   3.   The first undesignated paragraph of Section 12-45-70 of the 1976 Code is amended to read:

"Except as provided in Section 12-45-183, all taxes are due and payable between the thirtieth day of September and the fifteenth day of January after their assessment in each year. The several county treasurers under the direction and supervision of the Comptroller General shall collect the taxes in the manner prescribed by law and give receipts therefore for payment of taxes to the persons paying them. In the receipts and tax notices the real estate paid on must be briefly described including tax map number and an identifiable description and the value and a description of the personal property paid on must be stated, together with the time the taxes are paid, the amount paid, and the township where the property is located."
SECTION   4.   Section 12-45-180(A) of the 1976 Code is amended to read:

"(A)   Except as provided in Section 12-45-183, when the taxes and assessments or any portion of the taxes and assessments charged against any property or person on the duplicate for the current fiscal year are not paid before the sixteenth day of January or thirty days after the mailing of tax notices, whichever occurs later, the county auditor shall add a penalty of three percent on the county duplicate and the county treasurer shall collect the penalty. If the taxes, assessments, and penalty are not paid before the second day of the next February, an additional penalty of seven percent must be added by the county auditor on the county duplicate and collected by the county treasurer.


Printed Page 872 . . . . . Wednesday, February 8, 2006

If the taxes, assessments, and penalties are not paid before the seventeenth day of the next March, an additional penalty of five percent must be added by the county auditor on the county duplicate and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of March, the county treasurer shall issue his tax execution to the officer authorized and directed to collect delinquent taxes, assessments, penalties, and costs for their collection as provided in Chapter 51 of this title and they must be collected as required by that chapter. The United States postmark is the determining date for mailed payments. If the county treasurer determines by proper evidence that the mailing of a tax payment was improperly postmarked, and this error results in the imposition of a penalty provided in this subsection, then the penalty imposed may be waived by the county treasurer."
SECTION 5. This part takes effect July 1, 2008.
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 70; Nays 38

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Coates                 Coleman                Cooper
Cotty                  Davenport              Delleney
Duncan                 Edge                   Frye
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill

Printed Page 873 . . . . . Wednesday, February 8, 2006

Norman                 Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
Sinclair               D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Viers
Walker                 White                  Whitmire
Witherspoon

Total--70

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Branham                Breeland               G. Brown
Clyburn                Cobb-Hunter            Emory
Funderburk             Govan                  Hayes
Hiott                  Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                Mack                   McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Rhoad                  Rice                   Rivers
Scott                  Skelton                J. E. Smith
Vick                   Weeks

Total--38

So, the amendment was tabled.

SPEAKER IN CHAIR

Rep. J. E. Smith proposed the following Amendment No. 44 (Doc Name COUNCIL\GJK\20844SD06), which was tabled:
Amend the bill, as and if amended, in Section 11-11-155 of the 1976 Code, as contained in SECTION 2, Part I, by striking /the total of reimbursements paid pursuant to the provisions of Sections 12-37-251 and 12-37-270 in fiscal year 2005-2006/ which begins on line 3 of the section.


Printed Page 874 . . . . . Wednesday, February 8, 2006

Amend the bill further, as and if amended, by striking SECTION 3 and inserting:
/SECTION   3.   Chapter 37 of Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253.   (A)   After the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251, any remaining fair market value of property classified pursuant to Section 12-43-220(c) otherwise subject to tax is exempt from all school taxes except taxes levied:

(1)   for bonded indebtedness for capital construction for schools;

(2)   to make payments pursuant to a lease purchase agreement or other financing instrument for capital construction for schools;

(3)   no other millage for school operations may be levied by any school district beginning with calendar year 2007. Districts which violate this provision shall have its allocation from the Education Finance Act in the ensuing year reduced accordingly.

(B)   School districts must be reimbursed from revenues credited to the Homestead Exemption Fund for the revenue lost as a result of the exemption allowed by this section beginning with calendar year 2007 based on revenue collected in 2006 in an amount that is the district's proportionate share of Homestead Exemption Fund revenues based on the district's weighted pupil units as a percentage of statewide weighted pupil units as determined annually pursuant to the Education Finance Act.

(C)   Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State.

(D)   The exemption provided by this section applies for property taxes imposed by any property taxing entity if the revenues of taxes imposed by the entity are used directly or indirectly for school operations.

(E)   Beginning with the 2008 reimbursements to school districts of this State, these reimbursements must be increased on an annual basis by an inflation factor equal to the percentage increase in the previous year of the Consumer Price Index, Southeast Region, as published by the United States Department of Labor, Bureau of Labor Statistics plus the percentage increase in the previous year in the population of the district as determined by the Office of Research and Statistics of the Budget and Control Board.


Printed Page 875 . . . . . Wednesday, February 8, 2006

(F)   The percentage of population growth in any year for any school district entitled to reimbursements from the Homestead Exemption Fund shall be based on estimates for such growth in the county wherein the school district is located as determined by the Office of Research and Statistics of the Budget and Control Board. Where the school district encompasses areas in more than one county, the population growth in that district shall be the average of the growth in each county weighted to reflect the existing population of the district in that county as compared to the existing population of the district as a whole. /
Amend the bill further, as and if amended, by striking subsection C. and D. of SECTION 5, Part I, and by striking /12-37-251, 12-37-270,/ on line 1 of subsection E. of SECTION 5, Part I.
Amend further, as and if amended, by striking SECTION 1, Part II, in its entirety.
Renumber sections to conform.
Amend title to conform.

Rep. J. E. SMITH explained the amendment.
Rep. J. E. SMITH spoke in favor of the amendment.
Rep. JENNINGS spoke in favor of the amendment.

Rep. COTTY moved to table the amendment.

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

Yeas 72; Nays 41

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Bingham
Brady                  Breeland               R. Brown
Cato                   Ceips                  Chalk
Chellis                Clemmons               Coates
Coleman                Cooper                 Cotty
Dantzler               Davenport              Delleney
Duncan                 Edge                   Frye
Hagood                 Haley                  Hardwick
Harrell                Harrison               Haskins
Herbkersman            Hinson                 Huggins
Kirsh                  Leach                  Limehouse

Printed Page 876 . . . . . Wednesday, February 8, 2006

Littlejohn             Loftis                 Lucas
Mack                   Mahaffey               Martin
McCraw                 McGee                  Merrill
Norman                 Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Sandifer               Scarborough            Simrill
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Viers                  Walker
White                  Whitmire               Witherspoon

Total--72

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Battle                 Bowers
Branham                G. Brown               J. Brown
Clark                  Clyburn                Cobb-Hunter
Emory                  Funderburk             Govan
Hayes                  Hiott                  Hodges
Hosey                  Jennings               Kennedy
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Neilson                Ott                    Parks
Rhoad                  Rice                   Rivers
Rutherford             Scott                  Sinclair
Skelton                J. E. Smith            Talley
Vick                   Weeks

Total--41

So, the amendment was tabled.

Rep. BOWERS proposed the following Amendment No. 45 (Doc Name COUNCIL\NBD\12109AC06), which was tabled:
Amend the bill, as and if amended, by deleting Section 12-37-932(C) and inserting:
/(C)   For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its


Printed Page 877 . . . . . Wednesday, February 8, 2006

appraised value applicable for property tax year 2004 increased by the fair market value of subsequent improvements, or if ownership of the real property has been transferred after 2003, applying the provisions relating to ownership transfer contained in this section, when ownership last was transferred./
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

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

ACTING SPEAKER HARRISON IN CHAIR

Rep. BOWERS proposed the following Amendment No. 46 (Doc Name COUNCIL\NBD\12110AC06), which was tabled:
Amend the bill, as and if amended, by deleting Section 12-37-932(C) and inserting:
/(C)   For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its next to the last appraised value applicable for property tax increased by the fair market value of subsequent improvements, or if ownership of the real property has been transferred after the next to the last appraised value applicable for property tax, applying the provisions relating to ownership transfer contained in this section, when ownership last was transferred./
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

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

Rep. BOWERS proposed the following Amendment No. 47 (Doc Name COUNCIL\BBM\9229SJ06), which was tabled:
Amend the bill, as and if amended, Part I, by adding an appropriately numbered SECTION to read:
/ SECTION __.   Section 12-43-220(c) of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding an appropriately numbered subitem to read:


Printed Page 878 . . . . . Wednesday, February 8, 2006

"( )   For purposes of granting the special property tax assessment allowed by this subitem, an owner-occupied residence includes any and all single-family residences. /
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 69; Nays 38

Those who voted in the affirmative are:

Altman                 Ballentine             Bannister
Barfield               Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Frye                   Hagood                 Haley
Hamilton               Hardwick               Harrell
Haskins                Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Lucas                  Mahaffey               Martin
McCraw                 McGee                  Merrill
Norman                 Owens                  Perry
Pinson                 E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Talley
Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Viers                  Walker
White                  Whitmire               Witherspoon

Total--69


Printed Page 879 . . . . . Wednesday, February 8, 2006

Those who voted in the negative are:
Agnew                  Anderson               Anthony
Bailey                 Bales                  Battle
Bowers                 Branham                Breeland
G. Brown               J. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Funderburk             Govan                  Hodges
Hosey                  Jefferson              Jennings
Kennedy                Loftis                 Mack
McLeod                 Miller                 Mitchell
J. H. Neal             Neilson                Ott
Parks                  Rhoad                  Rivers
Scott                  J. E. Smith            Stewart
Vick                   Weeks

Total--38

So, the amendment was tabled.

Rep. BOWERS proposed the following Amendment No. 48 (Doc Name COUNCIL\NBD\12124AC06), which was tabled:
Amend the bill, as and if amended, Part I by adding an appropriately numbered SECTION to read:
/SECTION   __.   Section 12-43-220(C)(1) of the 1976 Code, as last amended by Act 145 of 2005, is further amended to read:

"(1)   The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, and additional dwellings located on the same property and occupied by immediate family members of the owner of the interest, are taxed on an assessment equal to four percent of the fair market value of the property. All residential real property occupied by dependents or parents of the owner of the interest in the residential property, regardless of where the property is located in the State, the property is assessed at the same ratio provided in this item. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the


Printed Page 880 . . . . . Wednesday, February 8, 2006

lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant or the residence is the domicile of dependents or parents of the owner applicant." /
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

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

SPEAKER IN CHAIR

Rep. BOWERS proposed the following Amendment No. 49 (Doc Name COUNCIL\GGS\22416SJ06), which was tabled:
Amend the bill, as and if amended, Section 2(A), Part II, by adding at the end:
/   In addition to the reimbursements determined by this subsection, for each municipality with a population of less than five thousand people, in calculating that municipality's reimbursements, the cost of providing services including, but not limited to, garbage, law enforcement, fire protection, and water must be included in the tax amount. /
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

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

Rep. BOWERS proposed the following Amendment No. 50 (Doc Name COUNCIL\DKA\3603DW06), which was tabled:


Printed Page 881 . . . . . Wednesday, February 8, 2006

Amend the bill, as and if amended, Part I, by adding an appropriately numbered SECTION to read:
/ SECTION __.   A. Article 9, Chapter 36, Title 12 is amended by adding:

"Section 12-36-915.   Notwithstanding another provision of this title, the sales tax imposed by this article is imposed upon the cost of labor or service at a rate equal to three and one-half percent."
B.   Section 12-36-90(b) of the 1976 Code is amended to read:

"(b)   the proceeds from the sale of tangible personal property without any deduction for:

(i)   the cost of goods sold;

(ii)   the cost of materials, labor, or service;

(iii)   interest paid;

(iv)   losses;

(v)   transportation costs;

(vi)   manufacturers or importers excise taxes imposed by the United States; or

(vii)   any other expenses." /
Renumber sections to conform.
Amend title to conform.

Rep. BOWERS explained the amendment.

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

Reps. MACK, BREELAND and R. BROWN proposed the following Amendment No. 51 (Doc Name COUNCIL\BBM\9237HTC06), which was tabled:
Amend the bill, as and if amended, in Part I, by adding a new SECTION at the end of Part I to read:
/ SECTION   __.   A.   Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Article 4
The Homestead Property
Tax Deferral for the
Elderly or Disabled Act

Section 12-37-505.     This article may be cited as the Homestead Property Tax Deferral for the Elderly or Disabled Act.

Section 12-37-510.   As used in this article, 'tax collector' means the county treasurer or municipal officer authorized by law to receive property tax payments.


Printed Page 882 . . . . . Wednesday, February 8, 2006

Section 12-37-515.   (A)   An individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 or the agent of such an individual may elect to defer payment of all or part of the ad valorem taxes levied on the homestead that exceed by more than fifty dollars the ad valorem taxes due on that homestead in the prior property tax year by filing an annual application for tax deferral with the tax collector within thirty days after tax notices for the year are mailed. Taxes attributable to improvements to the homestead may not be deferred.

(B)   It is the duty of each applicant for a deferral to demonstrate affirmatively compliance with the requirements of this article.

Section 12-37-520.   A tax deferral in any one year may not be granted pursuant to Section 12-37-515 if:

(1)   the total amount of deferred taxes and interest plus the total amount of all other unsatisfied liens on the homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the county tax duplicate for the immediately preceding tax year;

(2)   the homestead for which the deferral is sought is subject to any lien, the terms of which are dictated by federal law, rule, or regulation prohibiting deferral of taxes;

(3)   any nondeferred taxes on the homestead are delinquent;

(4)   proof of fire and extended coverage insurance is not included in the application.

Section 12-37-525.   (A)(1)   The application for deferral must be made upon a form prescribed by the Department of Revenue and furnished by the tax collector. The application form must advise the applicant of the manner in which interest is computed. Each application form must contain an explanation of the conditions to be met for approval and the conditions under which deferred taxes and interest become due, payable, and delinquent. Each application form must clearly state that all deferrals pursuant to this article constitute a lien on the applicant's homestead.

(2)   If the tax collector finds that the applicant is entitled to the tax deferral, he shall approve the application and file the application in the permanent records. If the tax collector finds that the applicant is not entitled to the deferral, he shall send a notice of disapproval to the applicant giving his reasons for the disapproval within thirty days of the filing of the application either by personal delivery or by certified mail to the mailing address given by the applicant, and he shall make a return on the original notice of the manner in which the notice was served on the applicant and shall file the return among the permanent


Printed Page 883 . . . . . Wednesday, February 8, 2006

records of his office. The original notice of disapproval sent to the applicant must advise the applicant of his right to appeal the decision of the tax collector to the Administrative Law Court and must inform the applicant of the procedure for filing an appeal.

(3)   The action by the Administrative Law Court is final unless the applicant, tax collector, or other lienholder files an appeal with the court of common pleas of the county in which the property lies within thirty days from the date the taxpayer receives written notification of the decision of the Administrative Law Court. A deferral is not allowed pursuant to a rejected application unless the rejection is overturned on appeal, at which time the tax collector shall return to the taxpayer, without interest, the amount requested to be deferred. Interest on this deferral begins on payment to the taxpayer.

(C)   Each applicant shall furnish proof in the application of fire and extended coverage insurance on the homestead in an amount which is in excess of the sum of all outstanding liens and deferred taxes and interest with a loss payable clause to the tax collector.

(D)   Each applicant shall provide a list and the amount of all outstanding liens on the applicant's homestead.

Section 12-37-530.   (A)   The amount of taxes deferred pursuant to this article accrues interest until paid at the rate of eight percent a year.

(B)   Except as provided in Section 12-37-525(A)(3), interest on taxes deferred pursuant to this article in any year begins accruing on the date the taxes were due.

Section 12-37-535.   The taxes and interest deferred pursuant to this article constitute a first lien and attach as of the date and in the same manner as the lien provided pursuant to Section 12-49-10 and must be collected as are other liens for taxes, as provided for under this title, but the deferred taxes and interest are due, payable, and delinquent as provided in this article. Notwithstanding any other provision of law, the lien established by this section continues on the property until the deferred taxes and accrued interest are paid in full.

Section 12-37-540.   Each year, at the time the tax notices are mailed, the tax collector shall notify each property owner to whom a homestead tax deferral has been previously granted of the accumulated sum of deferred taxes and interest outstanding.

Section 12-37-545.   (A)   If there is a change in tax-deferred property so that the owner is no longer entitled to a homestead exemption for the property pursuant to Section 12-37-250, or if the owner fails to maintain the required fire and extended insurance coverage, the total amount of deferred taxes and interest for all


Printed Page 884 . . . . . Wednesday, February 8, 2006

previous years are due and payable either on the date on which the change occurs or on the date failure to maintain insurance occurs.

(B)   If there is a change in ownership of tax-deferred property, the total amount of deferred taxes and interest for all previous years is due and payable on the date the change in ownership occurs. However, when the change in ownership is to a surviving spouse and the spouse is eligible for a homestead exemption on the property pursuant to Section 12-37-250, the surviving spouse may continue the deferral of previously deferred taxes and interest pursuant to this article.

(C)   During any year in which the total amount of deferred taxes, accrued interest, and all other unsatisfied liens on a homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the tax duplicate, the tax collector shall immediately notify the owner of the homestead that the portion of taxes and interest which exceeds eighty-five percent of the value of the homestead is due and payable within thirty days of receipt of the notice. Failure to pay the amount due shall cause the total amount of deferred taxes and interest also to become due and payable at the end of the thirty days.

(D)   All deferred taxes and accrued interest which are made due and payable by this section are delinquent and subject to interest in accordance with Section 12-54-25 at the end of one hundred twenty days following the date the deferred taxes become due and payable.

Section 12-37-550.   (A)   All or part of the deferred taxes and accrued interest may be paid at any time to the tax collector.

(B)   Any partial payment made pursuant to this section must be applied first to accrued interest. The minimum partial payment allowed is twenty-five dollars.

Section 12-37-555.   When deferred taxes and accrued interest is collected, the tax collector shall maintain a record of the payment, which record must contain a description of the property and the amount of taxes and accrued interest collected for the property. The tax collector shall distribute payments received to the local taxing entities to whom the taxes are owed and the interest must be distributed as taxes are distributed.

Section 12-37-560.   If any holder of a deed to secure debt or any mortgagee elects to pay the taxes of an applicant who qualifies for and receives a tax deferral, the election does not give the holder of the deed or the mortgagee the right to foreclose.

Section 12-37-565.   Except with respect to requirements dictated by federal law, rule, or regulation, no mortgage, deed to secure debt, or other agreement may contain a provision, clause, or statement which


Printed Page 885 . . . . . Wednesday, February 8, 2006

prohibits the owner from claiming a real property tax deferral on his homestead. Any such provision, clause, or statement executed after December 31, 2000, is void and unenforceable.

Section 12-37-570.   The following penalties are imposed on a person who wilfully files information required under this article which is incorrect:

(1)   The person shall pay the total amount of taxes and interest deferred, which is immediately due;

(2)   The person is disqualified from filing a homestead tax deferral application for the next three years; and

(3)   The person shall pay a penalty of twenty-five percent of the total amount of taxes and interest deferred."
B.   The first paragraph of Section 12-45-70 of the 1976 Code is amended to read:

"Except as provided in Article 4 of Chapter 37 of this title, all taxes are due and payable between the thirtieth day of September and the fifteenth day of January after their assessment in each year. The several county treasurers under the direction and supervision of the Comptroller General shall collect the taxes in the manner prescribed by law and give receipts therefore to the persons paying them. In the receipts and tax notices the real estate paid on must be briefly described including tax map number and an identifiable description and the value and a description of the personal property paid on must be stated, together with the time the taxes are paid, the amount paid, and the township where the property is located."
C.   Notwithstanding other effective dates provided in this act, this SECTION takes effect upon approval by the Governor and applies for property tax years beginning after 2005. /
Renumber sections to conform.
Amend title to conform.

Rep. MACK explained the amendment.
Rep. COOPER moved to table the amendment.

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

Yeas 72; Nays 38

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Barfield               Battle

Printed Page 886 . . . . . Wednesday, February 8, 2006

Bingham                Brady                  Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Coates
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Frye                   Hagood                 Haley
Hamilton               Harrell                Harrison
Haskins                Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McCraw                 McGee
Merrill                Norman                 Perry
Pinson                 E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Viers                  Walker
White                  Whitmire               Witherspoon

Total--72

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Branham                Breeland
G. Brown               J. Brown               R. Brown
Clyburn                Cobb-Hunter            Coleman
Emory                  Funderburk             Govan
Hayes                  Hodges                 Hosey
Jefferson              Jennings               Kennedy
Mack                   McLeod                 Miller
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Ott
Owens                  Parks                  Rhoad
Rivers                 Scott                  J. E. Smith
Vick                   Weeks

Total--38


Printed Page 887 . . . . . Wednesday, February 8, 2006

So, the amendment was tabled.

Rep. LITTLEJOHN proposed the following Amendment No. 52 (Doc Name COUNCIL\BBM\9236HTC06), which was adopted:
Representatives Harrell, et al., document number Council/GJK/ 20830HTC06, designated Amendment No. 6.
Amend the bill, as and if amended, SECTION 1(B)(2), in Part II, by adding at the end:
/ All amounts received by a district pursuant to the Education Finance Act must be expended only for classroom instruction and costs and expenses directly associated with classroom instruction. /
Renumber sections to conform.
Amend title to conform.

Rep. LITTLEJOHN explained the amendment.
The amendment was then adopted.

Rep. HOWARD proposed the following Amendment No. 53 (Doc Name COUNCIL\GGS\22422SJ06), which was tabled:
Amend the bill, as and if amended, Section 12-36-1110 as contained in SECTION 1, Part I, by adding a sentence at the end to read:
/   The sales tax imposed pursuant to this article does not apply to an individual eligible to receive the homestead exemption pursuant to Section 12-37-250 on a residence owned and occupied by that individual.   /
Renumber sections to conform.
Amend title to conform.

Rep. HOWARD explained the amendment.

Rep. COOPER moved to table the amendment.

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

Yeas 69; Nays 40

Those who voted in the affirmative are:

Altman                 Bailey                 Ballentine
Bannister              Bingham                Brady
Cato                   Ceips                  Chalk
Chellis                Clemmons               Coates

Printed Page 888 . . . . . Wednesday, February 8, 2006

Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson
Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McCraw                 McGee
Merrill                Norman                 Owens
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Rice                   Sandifer
Scarborough            Simrill                Sinclair
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 Viers
White                  Whitmire               Witherspoon

Total--69

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bales                  Barfield               Battle
Bowers                 Branham                Breeland
G. Brown               R. Brown               Clark
Clyburn                Cobb-Hunter            Coleman
Emory                  Funderburk             Govan
Hayes                  Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                Mack                   McLeod
Mitchell               Moody-Lawrence         J. H. Neal
J. M. Neal             Neilson                Ott
Parks                  Rhoad                  Rivers
Scott                  J. E. Smith            Vick
Weeks

Total--40

So, the amendment was tabled.


Printed Page 889 . . . . . Wednesday, February 8, 2006

Rep. COTTY proposed the following Amendment No. 55 (Doc Name COUNCIL\GJK\20845SD06), which was adopted:
Amend the bill, as and if amended, in Part I, SECTION 5, subsection E. by striking /12-43-250,/ as contained on line one of the subsection;
Amend the bill further, as and if amended, in item 1, subsection (A), SECTION 1, Part II, by striking the first sentence of item 1 and inserting:
/For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt./
Amend further, as and if amended, in item 1, subsection (B), SECTION 1, Part II, by striking the first sentence of item 1 and inserting /For the year 2007, school districts of this State must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt./
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.
The amendment was then adopted.

Reps. COBB-HUNTER and J. E. SMITH proposed the following Amendment No. 56 (Doc Name COUNCIL\AGM\18118MM06), which was tabled:
Amend the bill, as and if amended, by adding a new SECTION, Part II, appropriately numbered to read:
/SECTION   ___.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3565.   (A)(1)   There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 an amount equal to ten percent, but not more than seven hundred fifty dollars on one return, of rent paid by a resident individual taxpayer with a household income of thirty five thousand dollars or less during the taxable year for the taxpayer's residence. No credit may be claimed unless the taxpayer paid rent for occupying a residence in this State during each month of the taxable year for which the credit is claimed. No credit may be claimed for rent paid or contributions for expenses in lieu of rent for


Printed Page 890 . . . . . Wednesday, February 8, 2006

occupying a residence assessed for property tax purposes pursuant to Section 12-43-220(c) or rent paid for subletting a residence. Unused credit must be refunded to the taxpayer.

(2)   The credit allowed by this subsection may be claimed by means of a form prescribed by the department filed with the taxpayer's South Carolina individual income tax return that must contain the information and documentation determined necessary by the department for the administration of this credit. If the taxpayer is not required to file a South Carolina individual income tax return, the credit may be claimed by means of a separate form prescribed by the department which for purposes of filing and enforcement is deemed a South Carolina individual income tax return.

(3)   For purposes of this section, "household income" means all income, for all individuals residing within the household, from whatever source derived in a taxable year. "Household" means an individual or a group of individuals living together in a room or group of rooms as a housing unit.

(B)   An amount equal to the credits allowed pursuant to this section must be transferred to the general fund of the State from the Homestead Exemption Fund."/
Renumber sections to conform.
Amend title to conform.

Rep. COBB-HUNTER explained the amendment.

Rep. COTTY moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 65; Nays 43

Those who voted in the affirmative are:

Altman                 Ballentine             Bannister
Bingham                Brady                  Cato
Ceips                  Chellis                Clark
Clemmons               Coates                 Cooper
Cotty                  Dantzler               Davenport
Delleney               Duncan                 Edge
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson

Printed Page 891 . . . . . Wednesday, February 8, 2006

Hiott                  Huggins                Kirsh
Leach                  Limehouse              Littlejohn
Loftis                 Lucas                  Mahaffey
Martin                 McGee                  Merrill
Norman                 Perry                  Pinson
E. H. Pitts            M. A. Pitts            Sandifer
Scarborough            Simrill                Sinclair
Skelton                D. C. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Talley                 Taylor
Thompson               Toole                  Townsend
Umphlett               Vaughn                 White
Whitmire               Young

Total--65

Those who voted in the negative are:

Agnew                  Anderson               Anthony
Bailey                 Bales                  Barfield
Battle                 Bowers                 Branham
Breeland               G. Brown               J. Brown
R. Brown               Clyburn                Cobb-Hunter
Coleman                Emory                  Funderburk
Govan                  Hayes                  Hodges
Hosey                  Howard                 Jefferson
Jennings               Kennedy                Mack
McLeod                 Miller                 Mitchell
Moody-Lawrence         J. H. Neal             J. M. Neal
Ott                    Owens                  Parks
Rhoad                  Rice                   Scott
J. E. Smith            Vick                   Viers
Weeks

Total--43

So, the amendment was tabled.

Rep. HARDWICK proposed the following Amendment No. 57 (Doc Name COUNCIL\AGM\18116MM06), which was tabled:
Amend the bill, as and if amended, in subsection A., SECTION 1, Part I, by adding a new Section 12-36-1140 immediately after Section 12-36-1130 to read:


Printed Page 892 . . . . . Wednesday, February 8, 2006

/   Section 12-36-1140.   If a county generates more in state sales tax revenue collections during any year than the average state sales tax revenue collections in all counties during that year per capita, an amount equal to five percent of the state sales tax revenue collections in that county for the year from the two percent sales tax imposed pursuant to Section 12-36-1110 must be remitted by the comptroller general from the Homestead Exemption Fund into a special development fund for that county. The legislative delegation of that county shall appoint a special committee over that fund to expend the funds therein for the benefit of that county in areas including tourism, economic development, and infrastructure needs.

This special committee shall be appointed and shall operate in the same manner 'C' fund committees are appointed and operate. /
Renumber sections to conform.
Amend title to conform.

Rep. HARDWICK explained the amendment.

Rep. COOPER moved to table the amendment.

Rep. HAMILTON demanded the yeas and nays, which were not ordered.

The amendment was then tabled by a division vote of 50 to 31.

Rep. COTTY proposed the following Amendment No. 5 (Doc Name COUNCIL\GJK\20825SD06), which was tabled:
Amend the bill, as and if amended, in Part I, SECTION 5, subsection E. by striking /12-43-250,/ as contained on line one of the subsection;
Amend the bill further, as and if amended, in item 1, subsection (A), SECTION 1, Part II, by striking the first sentence of item 1 and inserting:
/For the year 2007, property taxing entities of this State other than school districts must be reimbursed from the Homestead Exemption Fund dollar for dollar for the property taxes collected by them from owner-occupied residential property for the year 2006 for all purposes other than payment of general obligation debt./
Amend the bill further, as and if amended, by striking subsection (B) of SECTION 2, Part II, in its entirety.
Renumber sections to conform.
Amend title to conform.


Printed Page 893 . . . . . Wednesday, February 8, 2006

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

Reps. HARRELL, MERRILL, COTTY and HINSON proposed the following Amendment No. 7 (Doc Name COUNCIL\GGS\ 22412HTC06):
Amend the bill, as and if amended, Part I, SECTION 1, by striking subsection B. and inserting:
/ B.   1.   Section 12-36-910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding a new subsection at the end to read:

"(D)(1)   Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is three percent.

(2)   Notwithstanding any other provision of law providing for the use of sales and use tax revenues, an amount equal to twenty percent of the revenue of the sales and use tax imposed pursuant to this subsection, as estimated by the Board of Economic Advisors, must be credited to the Education Improvement Act Fund as provided in Section 59-21-1010(B)."

2.   Section 12-36-910 of the 1976 Code, as amended by subsection B. of this SECTION, takes effect on the day that the tax imposed pursuant to subsection A. of this SECTION takes effect. /
Amend further, in Part I, by adding a new SECTION at the end appropriately numbered to read:
/ SECTION   __.   A.   1.   The first paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:

"(a)   All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property."

2.   Section 12-43-220(e) of the 1976 Code is amended to read:

"(e)   All other real property not herein provided for shall be taxed on an assessment equal to six 5.7 percent of the fair market value of such property."

3.   The amendment to the assessment ratios in items (a) and (e) of Section 12-43-220 of the 1976 Code in this subsection are made pursuant to SECTION 2(d), Article X of the Constitution of this State.


Printed Page 894 . . . . . Wednesday, February 8, 2006

B.   1.   Section 4-29-67(D)(2)(a)(i) of the 1976 Code is amended to read:

"(i)   an assessment ratio of at least six 5.4 percent, or four 3.6 percent for those projects qualifying pursuant to subsection (D)(4);"

2.   That portion of Section 4-29-67(D)(4) preceding (i) is amended to read:

"The assessment ratio may not be lower than four 3.6 percent:"
C.   Section 12-44-50(A)(1)(a) of the 1976 Code is amended to read:

"(a)   an assessment ratio of not less than six 5.4 percent, or four 3.6 percent for those projects qualifying under the enhanced investment definition:"
D.   The amendments in this section to the assessment ratios in Sections 12-44-50 and 4-29-67 of the 1976 Code apply both prospectively and retroactively. Fee agreements entered into before the effective date of this act pursuant to the provisions of Sections 12-44-50 and 4-29-67 of the 1976 Code must be amended to effect a ten percent reduction in the applicable assessment ratio. /
Renumber sections to conform.
Amend title to conform.

Rep. COOPER moved to adjourn debate on the amendment, which was agreed to.

Rep. PERRY proposed the following Amendment No. 13 (Doc Name COUNCIL\GJK\20806SD06), which was tabled:
Amend the bill, as and if amended, by striking Section 12-36-1110 of the 1976 Code, as contained in SECTION 1, Part I, and inserting:
/   Section 12-36-1110.   Beginning on the first day of June of the year in which this section takes effect, an additional sales, use, and casual excise tax equal to two percent is imposed on amounts taxable pursuant to this chapter, and this additional two percent tax also applies to amounts taxed pursuant to Section 12-36-920, the tax on accommodations for transients, but this additional tax does not apply to items subject to a maximum sales and use tax pursuant to Section 12-36-2110./
Amend further, as and if amended, by striking subsection B. of SECTION 1, Part I, in its entirety.
Renumber sections to conform.
Amend title to conform.

Rep. PERRY explained the amendment.


Printed Page 895 . . . . . Wednesday, February 8, 2006

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

Rep. MCGEE proposed the following Amendment No. 21 (Doc Name COUNCIL\GJK\20832SD06), which was adopted:
Amend the bill, as and if amended, in Part IV by adding a new SECTION appropriately numbered to read:
/SECTION   ____.   Notwithstanding any other provision of law, a county governing body is authorized to conduct a referendum at the same time as the 2006 general election as to whether or not a local option sales tax presently imposed in that jurisdiction should be repealed. If the qualified electors of the county vote in favor of repealing the local option sales tax, the tax shall be repealed as of January 1, 2007.   /
Renumber sections to conform.
Amend title to conform.

The amendment was then adopted.

Reps. HARRELL, MERRILL, COTTY and HINSON proposed the following Amendment No. 7 (Doc Name COUNCIL\GGS\ 22412HTC06), which was tabled:
Amend the bill, as and if amended, Part I, SECTION 1, by striking subsection B. and inserting:
/ B.   1.   Section 12-36-910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding a new subsection at the end to read:

"(D)(1)   Notwithstanding the rate of the tax imposed pursuant to subsection (A) of this section or the rate of any other sales tax imposed pursuant to this chapter and the rate of any use tax imposed pursuant to this chapter, the sales and use tax on the gross proceeds of sales or sales price of unprepared food which lawfully may be purchased with United States Department of Agriculture food coupons is three percent.

(2)   Notwithstanding any other provision of law providing for the use of sales and use tax revenues, an amount equal to twenty percent of the revenue of the sales and use tax imposed pursuant to this subsection, as estimated by the Board of Economic Advisors, must be credited to the Education Improvement Act Fund as provided in Section 59-21-1010(B)."

2.   Section 12-36-910 of the 1976 Code, as amended by subsection B. of this SECTION, takes effect on the day that the tax imposed pursuant to subsection A. of this SECTION takes effect. /


Printed Page 896 . . . . . Wednesday, February 8, 2006

Amend further, in Part I, by adding a new SECTION at the end appropriately numbered to read:
/ SECTION   __.   A.   1.   The first paragraph of Section 12-43-220(a) of the 1976 Code is amended to read:

"(a)   All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half nine percent of the fair market value of the property."

2.   Section 12-43-220(e) of the 1976 Code is amended to read:

"(e)   All other real property not herein provided for shall be taxed on an assessment equal to six 5.7 percent of the fair market value of such property."

3.   The amendment to the assessment ratios in items (a) and (e) of Section 12-43-220 of the 1976 Code in this subsection are made pursuant to SECTION 2(d), Article X of the Constitution of this State.
B.   1.   Section 4-29-67(D)(2)(a)(i) of the 1976 Code is amended to read:

"(i)   an assessment ratio of at least six 5.4 percent, or four 3.6 percent for those projects qualifying pursuant to subsection (D)(4);"

2.   That portion of Section 4-29-67(D)(4) preceding (i) is amended to read:

"The assessment ratio may not be lower than four 3.6 percent:"
C.   Section 12-44-50(A)(1)(a) of the 1976 Code is amended to read:

"(a)   an assessment ratio of not less than six 5.4 percent, or four 3.6 percent for those projects qualifying under the enhanced investment definition:"
D.   The amendments in this section to the assessment ratios in Section 12-44-50 and 4-29-67 of the 1976 Code apply both prospectively and retroactively. Fee agreements entered into before the effective date of this act pursuant to the provisions of Section 12-44-50 and 4-29-67 of the 1976 Code must be amended to effect a ten percent reduction in the applicable assessment ratio. /
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.
Rep. COATES spoke against the amendment.
Rep. KIRSH spoke against the amendment.
Rep. KENNEDY spoke against the amendment.

Rep. KIRSH moved to table the amendment.


Printed Page 897 . . . . . Wednesday, February 8, 2006

Rep. COBB-HUNTER demanded the yeas and nays which were taken, resulting as follows:

Yeas 73; Nays 43

Those who voted in the affirmative are:

Agnew                  Anderson               Anthony
Bales                  Ballentine             Battle
Bowers                 Branham                Breeland
G. Brown               J. Brown               R. Brown
Ceips                  Chalk                  Clark
Clyburn                Coates                 Cobb-Hunter
Coleman                Cotty                  Delleney
Emory                  Frye                   Funderburk
Govan                  Hamilton               Hayes
Hiott                  Hodges                 Hosey
Howard                 Jefferson              Jennings
Kennedy                Kirsh                  Littlejohn
Lucas                  Mack                   Mahaffey
Martin                 McCraw                 McLeod
Miller                 Mitchell               Moody-Lawrence
J. H. Neal             J. M. Neal             Neilson
Ott                    Owens                  Parks
E. H. Pitts            Rhoad                  Rice
Rivers                 Rutherford             Scott
Simrill                Sinclair               D. C. Smith
G. M. Smith            J. E. Smith            W. D. Smith
Talley                 Thompson               Toole
Townsend               Tripp                  Viers
Walker                 Weeks                  White
Whitmire

Total--73

Those who voted in the negative are:

Altman                 Bailey                 Bannister
Barfield               Bingham                Brady
Cato                   Chellis                Clemmons
Cooper                 Dantzler               Davenport
Duncan                 Edge                   Hagood
Haley                  Hardwick               Harrell
Harrison               Haskins                Herbkersman

Printed Page 898 . . . . . Wednesday, February 8, 2006

Hinson                 Huggins                Leach
Limehouse              Loftis                 McGee
Merrill                Norman                 Pinson
M. A. Pitts            Sandifer               Scarborough
Skelton                G. R. Smith            J. R. Smith
Stewart                Taylor                 Umphlett
Vaughn                 Vick                   Witherspoon
Young

Total--43

So, the amendment was tabled.

RECORD FOR VOTING

During the vote on Amendment No. 7, I was temporarily out of the Chamber. I would have voted to table the Amendment.

Rep. Robert S. "Skipper" Perry

POINT OF ORDER

Rep. J. E. SMITH raised the Point of Order that in accordance with Section 4-9-55(B) and Section 5-7-310, except upon approval of each house of the General Assembly by two thirds of the members voting in each house, the General Assembly may not enact, amend, or repeal any general law if the anticipated effect of doing so would be to reduce the authority that counties and municipalities have to raise revenues in the aggregate, as the authority existed on July 1, 1993. He cited several precedents of the House from 2002 and 2003 in support of his Point.
SPEAKER HARRELL stated that in June of 2005 and in April of 2004, former Speaker Wilkins made rulings directly contrary to and overruling the precedents cited by Rep. J. E. SMITH and that he felt he was bound by the more recent precedents. He stated further that the Bill did not reduce the authority of counties and municipalities to raise revenue in the aggregate because the local governments still had the ability to raise their revenues in the aggregate by raising the levels of other revenue streams. Therefore, he overruled the Point of Order.

Rep. J. H. NEAL spoke against the Bill.
Rep. NORMAN spoke against the Bill.
Rep. J. E. SMITH spoke against the Bill.
Rep. PERRY spoke against the Bill.
Rep. SCOTT spoke against the Bill.


Printed Page 899 . . . . . Wednesday, February 8, 2006

Rep. KENNEDY spoke against the Bill.
Rep. JENNINGS spoke against the Bill.
Rep. MACK spoke against the Bill.
Rep. BALLENTINE spoke in favor of the Bill.
Rep. GOVAN spoke against the Bill.
Rep. HOWARD spoke against the Bill.
Rep. MILLER spoke against the Bill.

SPEAKER PRO TEMPORE IN CHAIR

Rep. HARRELL spoke in favor of the Bill.

STATEMENT BY REP. COOPER

Rep. COOPER gave notice of offering amendments on third reading if necessary, pursuant to Rule 9.2.

SPEAKER IN CHAIR

POINT OF ORDER

Rep. J. E. SMITH raised the Point of Order that the Bill was out of order under House Rule 5.13 in that the Bill, as amended by the House, effected the expenditure of money by the State.
SPEAKER HARRELL sustained the Point of Order. He stated further that an updated fiscal impact statement would be attached to the Bill before session was adjourned for the day.

The question then recurred to the passage of the Bill, as amended, on second reading.

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

Yeas 86; Nays 31

Those who voted in the affirmative are:

Agnew                  Altman                 Anthony
Bailey                 Bales                  Ballentine
Bannister              Barfield               Bingham
Bowers                 Brady                  Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Clyburn
Coates                 Coleman                Cooper

Printed Page 900 . . . . . Wednesday, February 8, 2006

Cotty                  Dantzler               Davenport
Delleney               Duncan                 Edge
Emory                  Frye                   Funderburk
Hagood                 Haley                  Hamilton
Hardwick               Harrell                Harrison
Haskins                Herbkersman            Hinson
Huggins                Kirsh                  Leach
Limehouse              Littlejohn             Loftis
Lucas                  Mahaffey               Martin
McCraw                 McGee                  McLeod
Merrill                Miller                 J. M. Neal
Neilson                Ott                    Parks
Pinson                 E. H. Pitts            M. A. Pitts
Rhoad                  Sandifer               Scarborough
Simrill                Sinclair               D. C. Smith
G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Stewart                Talley
Taylor                 Thompson               Toole
Townsend               Tripp                  Umphlett
Vaughn                 Vick                   Viers
Walker                 White                  Whitmire
Witherspoon            Young

Total--86

Those who voted in the negative are:

Anderson               Battle                 Branham
Breeland               G. Brown               J. Brown
R. Brown               Cobb-Hunter            Govan
Hayes                  Hiott                  Hodges
Hosey                  Howard                 Jefferson
Jennings               Kennedy                Mack
Mitchell               Moody-Lawrence         J. H. Neal
Norman                 Owens                  Perry
Rice                   Rivers                 Rutherford
Scott                  Skelton                J. E. Smith
Weeks

Total--31


Printed Page 901 . . . . . Wednesday, February 8, 2006

So, the Bill, as amended, was read the second time and ordered to third reading.

Rep. COOPER 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. 4619 (Word version) -- Reps. Hosey and Rhoad: A CONCURRENT RESOLUTION TO CONGRATULATE THE BLACKVILLE-HILDA HIGH SCHOOL "FIGHTING HAWKS" FOOTBALL TEAM OF BARNWELL COUNTY ON CAPTURING THE 2005 CLASS A STATE CHAMPIONSHIP TITLE, AND TO HONOR THE PLAYERS AND THEIR COACHING STAFF, LED BY HEAD COACH DAVID BERRY, ON COMPLETING AN AMAZING UNDEFEATED SEASON.

H. 4626 (Word version) -- Rep. Agnew: A CONCURRENT RESOLUTION TO HONOR AND CONGRATULATE THE DUE WEST MASONIC LODGE #100, A CONCURRENT BODY OF THE PRINCE HALL GRAND LODGE OF SOUTH CAROLINA, CHARTERED #100 ON DECEMBER 13, 1905, ON ITS 100TH ANNIVERSARY AND WISH THEM MUCH SUCCESS IN ALL THE LODGE'S FUTURE ENDEAVORS.

ADJOURNMENT

At 10:35 p.m. the House, in accordance with the motion of Rep. HINSON, adjourned in memory of Councilwoman Judy Mims, to meet at 10:00 a.m. tomorrow.

***

This web page was last updated on Wednesday, June 24, 2009 at 9:45 A.M.