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COMMITTEE REPORT
April 19, 2005
H. 3296
Introduced by Reps. Harrell, Wilkins, Leach, Lucas, Bales, G.R. Smith, J.R. Smith, Vaughn, Battle, Cobb-Hunter, Neilson, Clark, Skelton, Kirsh, Moody-Lawrence, Rice, Harrison, Haley, Harvin, Young, Cotty, Mack, J.E. Smith, Taylor, Clemmons, Tripp, Chalk, Breeland, Limehouse, Altman, Bailey, Ballentine, Barfield, Bingham, Ceips, Chellis, Dantzler, Delleney, Duncan, Frye, Hagood, Hardwick, Hinson, Huggins, Jennings, Littlejohn, Martin, McGee, Norman, Ott, Perry, E.H. Pitts, Scarborough, Sinclair, D.C. Smith, Stewart, Toole, Townsend, Umphlett, Walker, Witherspoon, Brady and R. Brown
S. Printed 4/19/05--H.
Read the first time January 12, 2005.
To whom was referred a Bill (H. 3296) to amend Section 12-28-1555, as amended, Code of Laws of South Carolina, 1976, relating to the prohibition against the use of dyed motor vehicle fuels, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, Section 12-20-2355, as contained in SECTION 2 by deleting after the (C) on line 41, beginning on page 4 and ending on page 5 line 15:
/ Notwithstanding another provision of law, the fees collected pursuant to subsection (A) of this section must be credited to the Department of Transportation State Non-Federal Aid Highway fund as provided in the following schedule:
Fees General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent
(D) /
Amend the bill further, by striking SECTION 3 on page 5 in its entirety.
Amend the bill further, Section 12-28-2910(C), as contained in SECTION 4, page 6, by striking / to / after / account / on line 11 and inserting / for /, by inserting /beginning in fiscal year 2005-2006/ after /years /on line 12, by inserting / thousand / after / hundred / on line 14, and by inserting / , and afterwards all payments shall cease / before the / . / on line 15.
When amended, Section 12-28-2910(C) shall read:
/ (C) Notwithstanding another provision of law, funds must continue to be placed in the account for economic development for the five succeeding fiscal years beginning in fiscal year 2005-2006, but the payments required pursuant to subsection (A) of this section decline by three million six hundred thousand dollars from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009." /
Amend the bill further, by adding the following appropriately numbered SECTION:
/ SECTION __. Article 28, Chapter 28, Title 12 of the 1976 Code is amended by adding:
Section 12-28-2915. Notwithstanding another provision of law, five million dollars of the taxes collected pursuant to Article 1, Chapter 23, Title 12 must be placed in the account for economic development contained in Section 12-28-2910 for fiscal year 2005-2006. This amount shall be: ten million dollars for fiscal year 2006-2007; fifteen million dollars for fiscal year 2007-2008; twenty million dollars for fiscal year 2008-2009; and all taxes collected pursuant to Article 1, Chapter 23, Title 12 for fiscal year 2009-2010, and for all subsequent fiscal years. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
REVENUE IMPACT1/
This bill would reduce general fund revenue by an estimated $14,785,798 in FY2005-06, $30,864,354 in FY2006-07, $41,630,927 in FY2007-08, $47,642,800 in FY2008-09 and by $55,936,023 in FY2009-10. This bill would reduce DHEC revenue by an estimated $16,046,688 in FY2005-06, $16,455,974 in FY2006-07, $16,925,600 in FY2007-08, $17,417,393 in FY2008-09 and by $17,877,379 in FY2009-10. This bill would reduce Department of Commerce revenue by an estimated $3,600,000 in FY2005-06, $7,200,000 in FY2006-07, $10,800,000 in FY2007-08, $14,400,000 in FY2008-09 and by $18,000,000 in FY2009-10. This bill would reduce Department of Motor Vehicle revenue by an estimated $8,190,000 each year between FY2005-06 and FY2009-10. This bill would increase Department of Transportation revenue by an estimated $42,622,486 in FY2005-06, $62,710,329 in FY2006-07, $77,546,527 in FY2007-08, $87,650,194 in FY2008-09 and by $100,003,402 in FY2009-10. The attached table details the estimated impact that each section of the bill would have on the state general fund, the Department of Health and Environmental Control, the Department of Commerce, the Department of Motor Vehicles and the Department of Transportation for state fiscal years between FY2005-06 and FY2009-10.
Explanation
This bill would reallocate revenue currently dedicated to the state general fund, the Department of Health and Environmental Control, the Department of Commerce and/or the Department of Motor Vehicles to the Department of Transportation instead. Reallocated revenue would be directed primarily to a new fund within the Department of Transportation known as the "State Non-Federal Highway Fund". In addition, this bill would reallocate specific revenue currently dedicated to the Department of Transportation's "State Highway Fund" to the new "State Non-Federal Highway Fund" instead. This bill would not raise or lower any current user fees or taxes. The attached table details the estimated impact that each section of the bill would have on the State General Fund, the Department of Health and Environmental Control, the Department of Commerce, the Department of Motor Vehicles and the Department of Transportation for state fiscal years between FY2005-06 and FY2009-10.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-28-1555, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION AGAINST THE USE OF DYED MOTOR VEHICLE FUELS UNDER CERTAIN CIRCUMSTANCES, AND PENALTIES ASSOCIATED WITH VIOLATIONS OF THIS SECTION, SO AS TO PROVIDE THAT ALL FINES IMPOSED PURSUANT TO THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2355, AS AMENDED, RELATING TO BOTH THE INSPECTION FEE AND THE ENVIRONMENTAL IMPACT FEE CHARGED ON PETROLEUM PRODUCTS, SO AS TO PROVIDE THAT AFTER JUNE 30, 2005, ALL FEES COLLECTED PURSUANT TO THE PROVISIONS CONTAINED IN THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2720, AS AMENDED, RELATING TO THE DISTRIBUTION OF THE GASOLINE USER FEE, SO AS TO PROVIDE THAT THE FEE MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND INSTEAD OF BEING TURNED OVER TO THE DEPARTMENT OF TRANSPORTATION; TO AMEND SECTION 12-28-2910, AS AMENDED, RELATING TO THE FUNDING AND FUNCTIONS OF THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO PROVIDE THAT ITS FUNDING PROVIDED FROM A PORTION OF THE GASOLINE USER FEE SHALL BE ELIMINATED OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-50, AS AMENDED, RELATING TO THE ISSUANCE OF A BEGINNERS PERMIT, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF A BEGINNERS PERMIT MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-140, AS AMENDED, RELATING TO THE ISSUANCE OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-200, AS AMENDED, RELATING TO OBTAINING A DUPLICATE OF A LOST OR DESTROYED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DUPLICATE DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-390, AS AMENDED, RELATING TO THE FEE CHARGED FOR THE REINSTATEMENT OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-740, AS AMENDED, RELATING TO THE SUSPENSION OF A DRIVER'S LICENSE AND THE ISSUANCE OF A SPECIAL RESTRICTED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL RESTRICTED DRIVER'S LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-2090, RELATING TO THE ISSUANCE OF A COMMERCIAL DRIVER LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF COMMERCIAL DRIVER LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-3350, AS AMENDED, RELATING TO THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-3-910, AS AMENDED, RELATING TO THE DISPOSITION OF CERTAIN MOTOR VEHICLE REGISTRATION AND LICENSING FEES, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO REVENUES RECEIVED BY THE DEPARTMENT OF TRANSPORTATION FOR ITS OPERATION, SO AS TO PROVIDE THAT THESE FUNDS MUST BE PLACED IN EITHER THE "STATE HIGHWAY FUND" OR THE "STATE NON-FEDERAL AID HIGHWAY FUND"; AND TO PROVIDE A DECLINING SCHEDULE OF PAYMENTS FOR THE DEPARTMENT OF TRANSPORTATION'S COST OF ADMINISTRATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-28-1555 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1555. (A) No person may operate or maintain a motor vehicle on a public highway in this State with motor fuel subject to the user fee contained in the fuel supply tank for the motor vehicle that contains dye as provided under Section 12-28-770.
(B) This section does not apply to:
(1) persons operating motor vehicles who have received fuel into their fuel tanks outside of this State in a jurisdiction that permits introduction of dyed motor fuel subject to the user fee of that color and type into the motor fuel tank of highway vehicles; or
(2) users of dyed fuel on the highway which are lawful under the Internal Revenue Code and regulations including state and local government vehicles and buses unless otherwise prohibited by this chapter.
(C) A person who negligently violates this section is subject to a five hundred dollar civil penalty.
(D) A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than three years, or both.
(E) All fines imposed pursuant to this section must be placed in the Department of Transportation State Non-Federal Aid Highway Fund."
SECTION 2. Section 12-28-2355 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2355. (A) For the purpose of providing funds for inspecting, testing, and analyzing petroleum products and for general state purposes, there must be paid to the department a charge of one-fourth cent a gallon, which liability arises at the same time and is payable by the same person as the motor fuel user fee imposed under this chapter as if the petroleum product were motor fuel subject to the user fee under this chapter. Upon approval of the department, a surety bond is acceptable as monthly prepayments pending monthly reports and payments. Determination of acceptable bonding must be based on distribution, location of terminal facilities, and handling through other bonded suppliers.
(B) In addition to the inspection fee of one-fourth cent a gallon imposed pursuant to subsection (A), an environmental impact fee of one-half cent a gallon is imposed which must be used by the department for the purposes of carrying out the provisions of this chapter. This one-half cent a gallon environmental impact fee must be paid and collected in the same manner that the one-fourth cent a gallon inspection fee is paid and collected, except that the monies generated from these environmental impact fees must be transmitted by the Department of Revenue to the Department of Health and Environmental Control which shall deposit the fees as provided in Section 44-2-40.
(C) Notwithstanding another provision of law, the fees collected pursuant to subsection (A) of this section must be credited to the Department of Transportation State Non-Federal Aid Highway fund as provided in the following schedule:
Fees General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
(D) Notwithstanding another provision of law, after June 30, 2005, all fees collected pursuant subsection (B) of this section must be placed in the Department of Transportation State Non-Federal Aid Highway Fund."
SECTION 3. Section 12-28-2720 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2720. The proceeds from ten and thirty-four hundredths cents a gallon of the user fee on gasoline only as levied and provided for in this chapter must be turned over to the Department of Transportation for the purpose of that department placed in the Department of Transportation State Non-Federal Aid Highway Fund."
SECTION 4. Section 12-28-2910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2910. (A) The first eighteen million dollars generated from three cents of the user fee levied in this chapter must be segregated in a separate account for economic development. This account may be expended only upon the authorization of the South Carolina Coordinating Council for Economic Development which shall establish project priorities. Funds devoted to the economic development account must remain in the account if not expended in the previous fiscal year. Annually, funds from the user fee must be deposited to replenish the account to the extent and in an amount necessary to maintain an uncommitted and/or or an unobligated fund balance of eighteen million dollars but not to exceed eighteen million dollars for the ensuing fiscal year, or both. The council may spend no more than two hundred fifty thousand dollars, in the first year only, for a long-term economic development plan which must be submitted to the General Assembly on completion of the plan. The council may spend not more than sixty thousand dollars annually for a state infrastructure model.
(B) All interest earnings on the Economic Development Account must be credited to the State Highway fund.
(C) Notwithstanding another provision of law, funds must continue to be placed in the account to economic development for the five succeeding fiscal years, but the payments required pursuant to subsection (A) of this section decline by three million six hundred dollars from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009."
SECTION 5. Section 56-1-50 of the 1976 Code, as last amended by Act 280 of 2004, is further amended by adding at the end:
"(G) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 6. Section 56-1-140 of the 1976 Code, as last amended by Act 51 of 2003, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 7. Section 56-1-200 of the 1976 Code, as last amended by Act 497 of 1994, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 8. Section 56-1-390 of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(3) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 9. Section 56-1-740(B) of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(5) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 10. Section 56-1-2090 of the 1976 Code is amended by adding at the end:
"(E) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 11. Section 56-1-3350 of the 1976 Code, as last amended by Act 227 of 2000, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 12. Section 56-3-910(B) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 56-3-910. (B) Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001. The fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 13. Section 57-11-20(A) of the 1976 Code, as last amended by Act 461 of 1996, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be known as either the 'state highway fund State Highway Fund' or the State 'Non-Federal Aid Highway Fund' and all federal revenues and federal monies must be deposited into the "federal aid highway fund". These Both funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest income from the state highway fund must be deposited to the credit of the state highway fund. Interest income from the non-federal aid highway fund must be deposited to the credit of the non-federal aid highway fund. The commission may commit up to the maximum annual debt service provided in Article X, Section 13 of the South Carolina Constitution into a special fund to be used for the sole purpose of paying the principal and interest, as it comes due, on bonds issued for the construction and/or maintenance of state highways, or both. This special account will be designated as the State Highway Construction Debt Service Fund."
SECTION 14. In the state fiscal year beginning July 1, 2005, the Department of Transportation shall pay into the general fund of the State as its proportionate share of the cost of administration of central service agencies pursuant to the Statewide Cost Allocation Plan the following sums:
(1) Collection of Highway Revenues $2,453,943
(2) Central Service Agency Recoveries 1,498,029
Total Remittance for FY 2005-2006 $3,951,972.
These payments must continue for the three succeeding fiscal years, but the payments required pursuant to item (1) of this section decline by $613,486 from the prior year's payment and the payments required pursuant to item (2) of this section decline $374,507 from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009.
SECTION 15. This act takes effect upon approval by the Governor.
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