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

Tuesday, April 18, 2006
(Statewide Session)


Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear the Psalmist (Psalm 8:11):

"O Lord, our Lord, how excellent is Thy name in all the earth. You have set Your glory above the heavens."

Let us pray.

Eternal God, our Father, we thank You that nature's symphony in springtime bears witness today to the ancient chorus, "How excellent is Thy Name in all the earth!"

Give us the Spirit's harmony that we may be instruments in bringing peace and harmony and prosperity to our social and economic realm.

We pray in the Name of Him who is our Counselor and who will be our Judge!
Amen!

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

Point of Quorum

At 12:08 P.M., Senator MARTIN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator MARTIN moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Bryant
Campsen                   Cleary                    Courson
Cromer                    Drummond                  Elliott
Fair                      Ford                      Gregory
Grooms                    Hawkins                   Hayes
Hutto                     Jackson                   Knotts
Land                      Leventis                  Lourie
Malloy                    Martin                    Matthews
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Patterson
Peeler                    Richardson                Ritchie
Ryberg                    Scott                     Setzler
Sheheen                   Short                     Thomas
Williams

A quorum being present, the Senate resumed.

Recorded Presence

Senators VERDIN, REESE and RANKIN recorded their presence subsequent to the Call of the Senate.

MESSAGE FROM THE GOVERNOR

The following appointments were transmitted by the Honorable Mark C. Sanford:

Local Appointments

Reappointment, Abbeville County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

George T. Ferguson, P. O. Box 579, Abbeville, S.C. 29620

Reappointment, Abbeville County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

John R. Nixon, 1629 Highway 28 North, Abbeville, S.C. 29620

Initial Appointment, Bamberg County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Ed Freeman, 1810 Carolina Highway, Denmark, S.C. 29042 VICE Franklin Gibson

Reappointment, Bamberg County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

Ed Freeman, 1810 Carolina Highway, Denmark, S.C. 29042

REGULATION RECEIVED

The following was received and referred to the appropriate committee for consideration:

Document No. 3060
Agency: Department of Consumer Affairs
SUBJECT: Professional Employer Organizations
Received by Lieutenant Governor April 13, 2006
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration March 20, 2007

Doctor of the Day

Senator CROMER introduced Dr. William Gerard of Chapin, S.C., Doctor of the Day, along with medical resident Steve Cruea.

Leave of Absence

On motion of Senator MARTIN, at 12:05 P.M., Senator J. VERNE SMITH was granted a leave of absence for this week.

Leave of Absence

On motion of Senator McCONNELL, at 12:05 P.M., Senator LEATHERMAN was granted a leave of absence for today.

Leave of Absence

At 12:05 P.M., Senator O'DELL requested a leave of absence beginning at 5:00 P.M. today and lasting until 10:00 A.M. in the morning.

Leave of Absence

At 4:55 P.M., Senator CLEARY requested a leave of absence for Wednesday, April 19, 2006.

RECALLED AND TABLED

S. 1347 (Word version) -- Senator McGill: A BILL TO AMEND SECTION 16-11-610, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENTRY ON ANOTHER'S LAND FOR VARIOUS PURPOSES WITHOUT PERMISSION, SO AS TO EXTEND THE PROVISIONS OF THE TRESPASS TO INCLUDE A PERSON'S HUNTING DOGS.

Senator McGILL asked unanimous consent to make a motion to recall the Bill from the Committee on Fish, Game and Forestry.

There was no objection.

The Bill was recalled from the committee.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator McGILL asked unanimous consent to lay the Bill on the table.

There was no objection.

The Bill was laid on the table.

RECALLED

S. 1333 (Word version) -- Senator McConnell: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE STATE COMMISSION FOR MINORITY AFFAIRS RELATING TO STATE RECOGNITION OF NATIVE AMERICAN INDIANS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3043, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator McCONNELL asked unanimous consent to make a motion to recall the Joint Resolution from the Committee on Judiciary.

There was no objection.

The Resolution was recalled from the committee and ordered placed on the Calendar for consideration tomorrow.

RECALLED

H. 4940 (Word version) -- Rep. Walker: A BILL TO AMEND SECTION 7-7-490, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN SPARTANBURG COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS IN SPARTANBURG COUNTY AND REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

Senator McCONNELL asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.

There was no objection.

The Bill was recalled from the committee and ordered placed on the Calendar for consideration tomorrow.

RECALLED AND COMMITTED

S. 1350 (Word version) -- Senators Ritchie and Gregory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-455 SO AS TO DIRECT THE DEPARTMENT OF INSURANCE TO ESTABLISH GUIDELINES FOR, CREATE, AND MAINTAIN A WEBSITE ON WHICH INSURANCE COMPANIES WILL PROVIDE AND THE DEPARTMENT SHALL POST THE IDENTITIES OF SUBCONTRACTORS WHO TERMINATE THEIR WORKERS' COMPENSATION INSURANCE COVERAGE.

Senator McCONNELL asked unanimous consent to make a motion to recall the Bill from the Committee on Banking and Insurance.

There was no objection.

The Bill was recalled from the Committee on Banking and Insurance.

Senator McCONNELL asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator McCONNELL asked unanimous consent to commit the Bill to the Committee on Judiciary.

There was no objection.

The Bill was committed to the Committee on Judiciary.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1354 (Word version) -- Senators Pinckney and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 5-3-20 SO AS TO GIVE NOTICE OF A PROPOSED ANNEXATION BY A MUNICIPALITY, TO PROVIDE THE ELEMENTS OF NOTICE, AND TO REQUIRE CERTAIN DOCUMENTS MUST BE MADE AVAILABLE AT A PUBLIC MEETING; TO AMEND SECTION 5-3-150, RELATING TO THE ALTERNATE METHODS OF ANNEXATION WHERE A PETITION IS SIGNED BY SEVENTY-FIVE PERCENT OF THE FREEHOLDERS OF THE PROPERTY TO BE ANNEXED, SO AS TO DELETE THE NOTICE PROVISIONS BEFORE ACTION ON THE PETITION; TO AMEND SECTION 5-3-270, RELATING TO THE TIME WITHIN WHICH A CONTEST ON THE EXTENTION OF MUNICIPAL LIMITS MUST BE INSTITUTED, SO AS TO ESTABLISH THE REQUIREMENTS OF STANDING IN ORDER FOR A PARTY TO CHALLENGE A PROPOSED OR ORDERED ANNEXATION; AND TO AMEND SECTION 5-3-300, RELATING TO AN ALTERNATE METHOD OF ANNEXATION THAT REQUIRES A PETITION SIGNED BY TWENTY-FIVE PERCENT OR MORE OF THE QUALIFIED ELECTORS WHO ARE RESIDENTS OF THE AREA PROPOSED TO BE ANNEXED, SO AS TO INCREASE FROM THIRTY TO SIXTY DAYS THE NOTICE OF AN ANNEXATION USING THIS PROCEDURE.
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Read the first time and referred to the Committee on Judiciary.

S. 1355 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 17-3-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DETERMINATION OF FEES FOR APPOINTED COUNSEL AND PUBLIC DEFENDERS, SO AS TO INCREASE THE FEES TO FIFTY DOLLARS PER HOUR FOR ATTORNEYS WHO HAVE LESS THAN THREE YEARS OF EXPERIENCE PRACTICING LAW, SEVENTY-FIVE DOLLARS PER HOUR FOR ATTORNEYS WHO HAVE AT LEAST THREE YEARS BUT LESS THAN SIX YEARS OF EXPERIENCE PRACTICING LAW, EIGHTY DOLLARS PER HOUR FOR ATTORNEYS WHO HAVE AT LEAST SIX YEARS BUT LESS THAN TEN YEARS OF EXPERIENCE PRACTICING LAW, AND ONE HUNDRED DOLLARS PER HOUR FOR ATTORNEYS WHO HAVE TEN YEARS OR MORE OF EXPERIENCE PRACTICING LAW, AND TO INCREASE THE MAXIMUM COMPENSATION PERMITTED FOR EACH CASE TO SEVEN THOUSAND DOLLARS FOR CASES WHERE FELONIES ARE CHARGED, AND TO TWO THOUSAND DOLLARS FOR CASES WHERE ONLY MISDEMEANORS ARE CHARGED.
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Read the first time and referred to the Committee on Judiciary.

S. 1356 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 62-7-405, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CHARITABLE TRUSTS, SO AS TO PROVIDE THAT CHARITABLE TRUSTS ARE NOT REQUIRED TO BE FILED WITH THE ATTORNEY GENERAL UNLESS REQUIRED BY STATUTE, RULE, OR REGULATION.
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Read the first time and referred to the Committee on Judiciary.

S. 1357 (Word version) -- Senator Moore: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 TO CHAPTER 6, TITLE 44 SO AS TO ENACT THE "SMALL BUSINESS AND RURAL HEALTH CARE ASSISTANCE ACT" AND TO ESTABLISH THE SMALL BUSINESS HEALTH INSURANCE PREMIUM ASSISTANCE PROGRAM WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO PROVIDE HEALTH INSURANCE PREMIUM ASSISTANCE TO SMALL BUSINESSES FOR EMPLOYEES WHO ARE AT OR UNDER TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL, TO ESTABLISH ELIGIBILITY CRITERIA FOR SMALL BUSINESSES TO PARTICIPATE IN THE PROGRAM, TO REQUIRE ELIGIBLE EMPLOYEES TO CONTRIBUTE UP TO FIFTEEN PERCENT OF THE PREMIUM COST, TO PROVIDE THAT THIS PROGRAM MUST BE FUNDED FROM A PORTION OF A USER FEE OF 1.95 CENTS PER CIGARETTE, WHICH MUST BE ADJUSTED ANNUALLY BASED ON THE CONSUMER PRICE INDEX, AND TO DIRECT THE DEPARTMENT TO APPLY FOR A MEDICAID WAIVER TO IMPLEMENT THIS PROGRAM; TO PROVIDE THAT THE DEPARTMENT SHALL PROVIDE MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY INCOMES DO NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; TO CREATE THE MEDICAID MATCH FUND INTO WHICH A PORTION OF THE USER FEE ON CIGARETTES MUST BE DEPOSITED; AND TO ADD SECTION 12-21-630 SO AS TO PROVIDE FOR A 1.95 CENT USER FEE ON EACH CIGARETTE TO FUND THE SMALL BUSINESS AND RURAL HEALTH CARE ASSISTANCE PROGRAM AND TO PROVIDE FOR THE DISTRIBUTION OF THE REMAINING PORTION OF THIS USER FEE TO THE DEPARTMENT OF MENTAL HEALTH, THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, AND THE DEPARTMENT OF AGRICULTURE.
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Read the first time and referred to the Committee on Medical Affairs.

S. 1358 (Word version) -- Senators Lourie, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Cromer, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hawkins, Hayes, Hutto, Jackson, Knotts, Land, Leatherman, Leventis, Malloy, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Rankin, Reese, Richardson, Ritchie, Ryberg, Scott, Setzler, Sheheen, Short, J. Verne Smith, Thomas, Verdin and Williams: A SENATE RESOLUTION TO CONGRATULATE THE CLASS OF 1956 OF THE UNIVERSITY OF SOUTH CAROLINA AS IT CELEBRATES ITS FIFTIETH ANNIVERSARY AND TO COMMEND THE MEMBERS OF THIS OUTSTANDING CLASS FOR THEIR CONTRIBUTIONS TO THEIR COMMUNITIES, STATE, NATION, AND WORLD.
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The Senate Resolution was adopted.

H. 5007 (Word version) -- Rep. Allen: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE REVEREND JAMES E. MASSEY OF ANDERSON COUNTY FOR HIS OUTSTANDING CONTRIBUTIONS TO THE LIVES OF HIS CONGREGANTS AND CHURCH COMMUNITY UPON THE SEVEN YEAR ANNIVERSARY OF HIS LEADERSHIP OF HOLLY SPRINGS BAPTIST CHURCH.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 5008 (Word version) -- Rep. Hosey: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR JEAN BELCHER OF BARNWELL COUNTY FOR BEING NAMED 2006 SOUTH CAROLINA MOTHER OF THE YEAR, AND TO CONGRATULATE HER FOR REARING FOUR INTELLIGENT CHILDREN WHO CONTINUE TO SUCCEED PROFESSIONALLY IN THEIR RESPECTIVE FIELDS.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 5009 (Word version) -- Rep. M. A. Pitts: A CONCURRENT RESOLUTION TO HONOR THE MEMORY OF FALLEN LAW ENFORCEMENT OFFICER DEPUTY JOSEPH SCOTT QUARLES OF LAURENS COUNTY FOR HIS DEDICATION TO SERVING AND PROTECTING THE PEOPLE OF SOUTH CAROLINA, AND TO CELEBRATE THE ENTHUSIASM AND PROFESSIONALISM HE BROUGHT TO THE HIGH CALLING OF A CAREER IN LAW ENFORCEMENT.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 5010 (Word version) -- Rep. Bowers: A CONCURRENT RESOLUTION TO EXPRESS THE SINCERE SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY UPON THE DEATH OF ISHAM NATHANIEL "I.N." RIZER OF COLLETON COUNTY, AND TO CONVEY THE DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 5012 (Word version) -- Rep. M. A. Pitts: A CONCURRENT RESOLUTION TO COMMEND THE NATIONAL WILD TURKEY FEDERATION ON ITS DILIGENT EFFORTS TO THE CONSERVATION OF THE WILD TURKEY AND THE PRESERVATION OF OUR NATION'S HUNTING TRADITION, AND TO RECOGNIZE THE NUMEROUS PROGRAMS THAT SUPPORT THE FEDERATION'S MISSION.

The Concurrent Resolution was adopted, ordered returned to the House.

REPORT OF STANDING COMMITTEE

Senator THOMAS from the Committee on Banking and Insurance submitted a favorable with amendment report on:

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.

Ordered for consideration tomorrow.

HOUSE CONCURRENCE

S. 1329 (Word version) -- Senator Matthews: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR REVEREND DR. SAMUEL B. MARSHALL OF DORCHESTER COUNTY FOR HIS DEVOTION TO HIS FAITH, CAREER, AND COMMUNITY AND TO WISH HIM THE BEST IN ALL FUTURE ENDEAVORS.

Returned with concurrence.

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

ORDERED ENROLLED FOR RATIFICATION

The following Bill was read the third time and, having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:

H. 4313 (Word version) -- Reps. J. Brown, Clark, Altman, G.R. Smith, Loftis, Moody-Lawrence, Toole, Vick and R. Brown: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 53-3-185 SO AS TO PROVIDE THAT THE FIRST FRIDAY IN MAY OF EACH YEAR IS DECLARED TO BE "VIETNAM VETERANS SURVIVORS' DAY" IN SOUTH CAROLINA.

HOUSE BILL RETURNED

The following House Bill was read the third time and ordered returned to the House with amendments:

H. 3193 (Word version) -- Reps. W.D. Smith, Clemmons, Barfield, Viers, Edge, Miller, Anderson and Hardwick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-53-110 SO AS TO PROVIDE THAT A TECHNICAL EDUCATION INSTITUTION UNDER THE CONTROL OF THE STATE BOARD FOR TECHNICAL AND COMPREHENSIVE EDUCATION MAY CHANGE ITS NAME PURSUANT TO CERTAIN CIRCUMSTANCES.

Senator PEELER asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.

The Bill was read the third time and ordered returned to the House.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 4195 (Word version) -- Rep. Perry: A BILL TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 100 TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ISSUE "PARROT HEAD" SPECIAL LICENSE PLATES AND TO PROVIDE FOR THE DISTRIBUTION OF FEES COLLECTED FOR THESE SPECIAL LICENSE PLATES TO THE SOUTH CAROLINA PARROT HEAD CLUB COUNCIL TO BE USED TO SUPPORT THE PALMETTO CHAPTER OF THE ALZHEIMER'S ASSOCIATION AND THE UPSTATE SOUTH CAROLINA CHAPTER OF THE ALZHEIMER'S ASSOCIATION.

The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.

Motion Under Rule 26B

Senator SHORT asked unanimous consent to make a motion to take up further amendments on H. 4195, pursuant to the provisions of Rule 26B.

There was no objection.

Senator SHORT proposed the following amendment (4195R001.LHS), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:

/   SECTION   __.   Chapter 3, Title 56 of the 1976 Code is amended by adding:

"Section 56-3-9800.   (A)   The Department of Motor Vehicles may issue a special commemorative 'Breast Cancer Awareness' motor vehicle license plate to establish a special fund to be used by the Department of Health and Environmental Control for the purpose of expanding the services provided by the Best Chance Network. The special license plates, which must be of the same size and general design of regular motor vehicle license plates, must be imprinted with the nationally recognized breast cancer symbol with numbers as the department may determine. The plates are for annual periods as provided by law. The fee for this special license plate is thirty-five dollars each year in addition to the regular motor vehicle registration fee as set forth in Article 5, Chapter 3 of this title.

(B)   One half of the thirty-five dollar annual fee collected over that required by Article 5, Chapter 3 of this title must be deposited in a separate fund for the Department of Health and Environmental Control and be used solely to expand the services of the Best Chance Network. The remaining one half of the fee must be distributed to the South Carolina chapter of the American Cancer Society.

(C)   Before the department produces and distributes a plate authorized under this section, it must receive:

(1)   four hundred or more prepaid applications for the special license plate or a deposit of four thousand dollars from the individual or organization seeking issuance of the license plate. If a deposit of four thousand dollars is made by an individual or organization pursuant to this section, the department must refund the four thousand dollars once an equivalent amount of license plate fees is collected for that organization's license plate. If the equivalent amount is not collected within four years of the first issuance of the license plate, then the department must retain the deposit; and

(2)   a plan to market the sale of the special license plate that must be approved by the department.

(D)   If the department receives less than three hundred biennial applications and renewals for a particular special license plate authorized under this section, it shall not produce additional special license plates in that series. The department shall continue to issue special license plates of that series until the existing inventory is exhausted."       /

Renumber sections to conform.

Amend title to conform.

Senator SHORT explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.

THIRD READING BILLS

The following Bills and Joint Resolution were read the third time and ordered sent to the House of Representatives:

S. 1352 (Word version) -- Senators Knotts, Cromer, Courson and Setzler: A BILL TO PROVIDE THAT A PUBLIC SAFETY OFFICER WITH THE LEXINGTON COUNTY HEALTH SERVICES DISTRICT MAY RECEIVE TRAINING AT THE DEPARTMENT OF PUBLIC SAFETY'S CRIMINAL JUSTICE ACADEMY DIVISION.

By prior motion of Senator KNOTTS

S. 391 (Word version) -- Senator Moore: A BILL TO AMEND SECTION 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS IN MATTERS RELATING TO CAMPAIGN PRACTICES AND IN MATTERS RELATING TO LOBBYISTS AND LOBBYING, RESPECTIVELY, INCLUDING THE DEFINITION OF LEGISLATIVE CAUCUS COMMITTEE, SO AS TO PROVIDE THAT SUCH A CAUCUS MAY BE CREATED BASED UPON A SPECIAL LEGISLATIVE INTEREST.

S. 17 (Word version) -- Senators Hutto, McConnell, Mescher, Fair and Ford: A BILL TO AMEND SECTION 56-5-2940, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PENALTIES FOR OPERATING A MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF INTOXICATING LIQUOR, DRUGS, OR NARCOTICS, SO AS TO PROVIDE THAT A VIOLATION OF SECTION 56-5-2930 OR SECTION 56-5-2933 CONSTITUTES A PRIOR OFFENSE FOR PURPOSES OF DETERMINING SUBSEQUENT VIOLATIONS IN ACCORDANCE WITH SECTION 56-5-2940.

S. 1154 (Word version) -- Senators Fair, Peeler, Verdin, Land, O'Dell, Mescher, Short, Martin, Alexander and Scott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SUBARTICLE 22 TO ARTICLE 30, CHAPTER 7, TITLE 20 OF THE 1976 CODE SO AS TO ENACT THE "INTERSTATE COMPACT FOR JUVENILES" WHICH, AMONG OTHER THINGS, PROVIDES FOR AN INDEPENDENT COMPACT OPERATING AUTHORITY TO ADMINISTER ONGOING COMPACT ACTIVITY, GUBERNATORIAL APPOINTMENTS OF REPRESENTATIVES FOR ALL MEMBER STATES ON A NATIONAL GOVERNING COMMISSION, RULE-MAKING AUTHORITY, A MANDATORY FUNDING MECHANISM SUFFICIENT TO SUPPORT ESSENTIAL COMPACT OPERATIONS, AND COLLECTION OF STANDARDIZED INFORMATION; AND TO REPEAL SUBARTICLE 21, ARTICLE 30, CHAPTER 7, TITLE 20, RELATING TO THE INTERSTATE COMPACT ON JUVENILES.

S. 1268 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 16-1-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VIOLENT CRIMES, SO AS TO INCLUDE THE OFFENSE OF TRAFFICKING COCAINE BASE AS A VIOLENT CRIME.

S. 1348 (Word version) -- Education Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF EDUCATION, RELATING TO END-OF-COURSE TESTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3056, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1246 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTION 7-7-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DESIGNATION OF VOTING PRECINCTS IN KERSHAW COUNTY, SO AS TO DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

SECOND READING BILLS

The following Bills and Joint Resolution, having been read the second time, were ordered placed on the Third Reading Calendar:

H. 4922 (Word version) -- Rep. J.E. Smith: A BILL TO ABOLISH THE RICHLAND COUNTY HISTORIC PRESERVATION COMMISSION AND DEVOLVE ITS POWERS, DUTIES, AND FUNCTIONS UPON THE HISTORIC COLUMBIA FOUNDATION; TO PROVIDE THAT REAL PROPERTY HELD BY THE COMMISSION MUST BE TRANSFERRED IN ACCORDANCE WITH THE INSTRUMENT THROUGH WHICH THE PROPERTY WAS CONVEYED TO THE COMMISSION; AND TO PROVIDE THAT THE STATE SHALL CONVEY TO RICHLAND COUNTY ANY PROPERTY THAT REVERTS TO THE STATE; AND TO REPEAL ACT 69 OF 1963, RELATING TO THE ESTABLISHMENT, POWERS, AND DUTIES OF THE RICHLAND COUNTY HISTORIC PRESERVATION COMMISSION.

S. 1353 (Word version) -- General Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF SOCIAL SERVICES, RELATING TO CHILD SUPPORT GUIDELINES, DESIGNATED AS REGULATION DOCUMENT NUMBER 3044, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1267 (Word version) -- Senators Hawkins and Knotts: A BILL TO AMEND SECTION 23-3-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ELECTRONIC MONITORING OF SEX OFFENDERS, SO AS TO ESTABLISH THE PERSONS WHO MUST BE ELECTRONICALLY MONITORED AND TO ESTABLISH THE PROCEDURES FOR MONITORING SUCH PERSONS.

Senator HAWKINS asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

The Bill was read the second time and ordered placed on the Third Reading Calendar.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 1128 (Word version) -- Senator Land: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-59-35 SO AS TO PROHIBIT A PERSON FROM ENGAGING IN THE BUSINESS OF RESIDENTIAL HEATING AND AIR CONDITIONING CONTRACTING UNLESS LICENSED AS A RESIDENTIAL SPECIALTY CONTRACTOR; TO PROHIBIT PROVIDING A POTENTIAL BUYER A PROPOSAL FOR SALE OR INSTALLATION OF RESIDENTIAL HEATING AND AIR CONDITIONING, OTHER THAN A WRITTEN ESTIMATE, BEFORE THE SPECIFICATIONS FOR THE SYSTEM HAVE BEEN REVIEWED AND APPROVED BY A LICENSED EMPLOYEE OF THE RETAIL SELLER, OR THE RETAIL SELLER; TO FURTHER SPECIFY CONTRACT REQUIREMENTS FOR THE SALE AND INSTALLATION OF A HEATING AND AIR CONDITIONING SYSTEM; AND TO AUTHORIZE THE DEPARTMENT OF LABOR, LICENSING AND REGULATION TO PROMULGATE REGULATIONS ESTABLISHING A CIVIL PENALTY FOR VIOLATIONS.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (S-1128 AMENDMENT), which was adopted:

Amend the bill, as and if amended, Section 40-59-35, page 2, by striking lines 4-14 and inserting:

/   "Section 40-59-35.   (A)   The provisions of this section apply to all persons, firms, or corporations who engage in, or attempt to engage in, the business of residential heating and air conditioning contracting, or any combination of these, and who receive compensation for providing these services. The provisions of this section do not apply to homeowners who make minor repairs or minor replacements to an already installed system. For purposes of this section, 'minor repairs or minor replacements' include the replacement of parts in an installed system that do not require any change in energy source, fuel type, or routing or sizing of venting or piping. This provision does not apply to licensed residential builders or general contractors who are purchasing heating and/or air conditioning equipment to be installed by licensed heating and air conditioning residential specialty contractors.       /

Amend further, Section 40-59-35, page 2 by striking lines 40-43 and on page 3 by striking lines 1-3 and inserting:

/   (G)   In addition to any other penalties provided for in this chapter, a person who violates a provision of this section is subject to provisions of Section 40-59-210(B)."                       /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the committee amendment.

The committee amendment was adopted.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

S. 1128--Ordered to a Third Reading

On motion of Senator SETZLER, with unanimous consent, S. 1128 was ordered to receive a third reading on Wednesday, April 19, 2006.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 967 (Word version) -- Senators Martin, Ford and O'Dell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 7 TO CHAPTER 69, TITLE 38, SO AS TO ENACT THE "ANNUITY INVESTMENTS BY SENIORS ACT" TO PROVIDE STANDARDS AND PROCEDURES FOR RECOMMENDATIONS TO SENIOR CONSUMERS TO ENSURE THAT ANNUITY PRODUCTS FOR THESE SENIOR CONSUMERS ADDRESS THEIR INSURANCE AND FINANCIAL NEEDS.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Banking and Insurance.

The Committee on Banking and Insurance proposed the following amendment (DKA\3671DW06), which was adopted:

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

/ SECTION   1.   (A)   The purpose of this act is to provide standards and procedures for recommendations to consumers which result in a transaction involving annuity products to appropriately address the insurance needs and financial objectives of consumers at the time of the transaction.

(B)   This act applies to any recommendation to purchase or exchange an annuity made to a consumer by an insurance producer, or an insurer where no producer is involved, that results in the purchase or exchange recommended.

(C)   Nothing in this act may be construed to create or imply a private cause of action for a violation of this act.

SECTION   2.   Chapter 69, Title 38 of the 1976 Code is amended by adding:

  "Article 7

Annuity Investments by Regulations

Section 38-69-510.   This article is known as the 'Annuity Investments by Regulations Act'.

Section 38-69-520.   For purposes of this article:

(1)   'Annuity' means a fixed annuity or variable annuity that is individually solicited, whether the product is classified as an individual annuity or a group annuity.

(2)   'Recommendation' means advice provided by an insurance producer, or an insurer if no insurance producer is involved, to an individual consumer which results in a purchase or exchange of an annuity in accordance with that advice.

Section 38-69-530.   (A)   In recommending to a consumer the purchase of an annuity or the exchange of an annuity that results in another insurance transaction or series of insurance transactions, an insurance producer, or an insurer if no insurance producer is involved, has reasonable grounds for believing that the recommendation is suitable for the consumer on the basis of the facts disclosed by the consumer as to his investments and other insurance products and as to his financial situation and needs.

(B)   Before executing a purchase or exchange of an annuity resulting from a recommendation to a consumer, an insurance producer, or an insurer if no insurance producer is involved, shall make reasonable efforts to obtain information concerning the consumer's financial status, tax status, and investment objectives and such other information used or considered to be reasonable by the insurance producer, or the insurer if no producer is involved, in making the recommendation.

(C)(1)   Except as provided in item (2), an insurance producer, or an insurer if no insurance producer is involved, may not have any obligation to a consumer as provided for in subsection (A) related to any recommendation if the consumer:

(a)   refuses to provide relevant information requested by the insurer or insurance producer;

(b)   decides to enter into an insurance transaction that is not based on a recommendation of the insurer or insurance producer; or

(c)   fails to provide complete or accurate information.

(2)   An insurer or insurance producer's recommendation subject to item (1) must be reasonable under all the circumstances actually known to the insurer or insurance producer at the time of the recommendation.

(D)(1)   An insurer or insurance producer shall ensure that a system to supervise recommendations that is designed to achieve compliance with this section is established and maintained by complying with the provisions of items (3), (4), and (5), or shall establish and maintain a system including, but not limited to:

(a)   maintaining written procedures; or

(b)   conducting periodic reviews of its records that are reasonably designed to assist in detecting and preventing violations of this section.

(2)   A managing general agent and an insurance agency shall adopt a system established by an insurer to supervise recommendations of its insurance producers that is designed to achieve compliance with this section or shall establish and maintain a system including, but not limited to:

(a)   maintaining written procedures; or

(b)   conducting periodic reviews of records that are reasonably designed to assist in detecting and preventing violations of this section.

(3)   An insurer may contract with a third party, including a managing general agent or an insurance agency, to establish and maintain a system of supervision as required by item (1) with respect to insurance producers under contract with or employed by the third party.

(4)   An insurer shall make reasonable inquiry to ensure that a third party contracting pursuant to the provisions of item (3) is performing the functions required by item (1) and shall take action as is reasonable under the circumstances to enforce the contractual obligation to perform the functions. An insurer may comply with its obligation to make reasonable inquiry by:

(a)   annually obtaining a certification from a third party senior manager who has responsibility for the delegated functions that the manager has a reasonable basis to represent, and does represent, that the third party is performing the required functions; or

(b)   based on reasonable selection criteria, periodically selecting third parties contracting pursuant to the provisions of item (3) for a review to determine whether the third parties are performing the required functions. The insurer shall perform any procedures necessary to conduct the review which are reasonable under the circumstances.

(5)   An insurer that contracts with a third party pursuant to item (3) and complies with the requirements specified in item (4) is considered to have fulfilled its responsibilities provided by item (1).

(6)   An insurer, a managing general agent, or an insurance agency is not required by items (1) or (2) to:

(a)   review or provide for review of all transactions solicited by an insurance producer; or

(b)   include in its system of supervision an insurance producer's recommendations to consumers of products other than the annuities offered by the insurer, managing general agent, or insurance agency.

(7)   A managing general agent or an insurance agency contracting with an insurer pursuant to item (3) promptly shall provide, when requested by the insurer pursuant to item (4), a certification as described in item (4) or provide a clear statement that the managing general agent or insurance agency is unable to meet the certification criteria.

(8)   A person may not provide a certification pursuant to the provisions of item (4)(a) unless the person is a senior manager with responsibility for the delegated functions and has a reasonable basis for making the certification.

Section 38-69-540.   (A)   The department may order an insurer to take reasonably appropriate corrective action for any consumer harmed by a violation of this article by the insurer or the insurer's insurance producer.

(B)   The department may order:

(1)   an insurance producer to take reasonably appropriate corrective action for any consumer harmed by a violation of this article by the insurance producer; or

(2)   a managing general agency or an insurance agency that employs or contracts with an insurance producer to sell or solicit the sale of annuities to consumers to take reasonably appropriate corrective action for any consumer harmed by a violation of this article by the insurance producer.

(C)   Any applicable penalty provided by Section 38-2-10 for a violation of Section 38-69-530(A) or (B), or Section 38-69-530(C)(2) may be reduced or eliminated, according to a schedule adopted by the department if corrective action for the consumer was taken promptly after a violation was discovered.

Section 38-69-550.   (A)   An insurer, a managing general agent, an insurance agency, and an insurance producer shall maintain or be able to make available to the department records of the information collected from the consumer and other information used in making the recommendations that were the basis for insurance transactions for five years after the insurance transaction is completed by the insurer. An insurer is permitted, but is not required, to maintain documentation on behalf of an insurance producer.

(B)   Records required to be maintained by this article may be maintained in paper, photographic, microprocess, magnetic, mechanical, or electronic media, or by any process that accurately reproduces the actual document.

Section 38-69-560.   Unless otherwise specifically included, this article does not apply to recommendations involving:

(1)   direct-response solicitations where there is no recommendation based on information collected from the consumer pursuant to this article; and

(2)   contracts used to fund:

(a)   an employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act;

(b)   a plan described by Internal Revenue Code Sections 401(a), 401(k), 403(b), 408(k), or 408(p), as defined in Section 12-6-40(A), if established or maintained by an employer;

(c)   a government or church plan defined in Internal Revenue Code Section 414, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax-exempt organization under Internal Revenue Code Section 457;

(d)   a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

(e)   settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or

(f)   prepaid funeral contracts.

Section 38-69-570.   Compliance with the National Association of Securities Dealers Conduct Rules in effect on January 1, 2004, satisfies the requirements as provided by this article for the recommendation of variable annuities. This article does not limit the department's ability to enforce the provisions of this article with respect to an insurance producer, an insurance agency, and a managing general agent, or the department's ability to enforce the provisions of this article with respect to insurers."

SECTION   3.   Nothing in this act may be construed to create or be the basis of a civil action. Nothing in this act may be construed as limiting settlement or adjustment of claims by methods that are otherwise permissible under state law.

SECTION   4.   This act takes effect January 1, 2007. /

Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the committee amendment.

The committee amendment was adopted.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

CARRIED OVER

H. 4644 (Word version) -- Rep. Cooper: A CONCURRENT RESOLUTION TO REQUEST THE SOUTH CAROLINA HIGH SCHOOL LEAGUE TO SCHEDULE THE ANNUAL STATE HIGH SCHOOL FOOTBALL CHAMPIONSHIPS AT A FACILITY ON THE CAMPUS OF OTHER COLLEGES OR UNIVERSITIES WHICH MEET THE SAME SEATING CAPACITY AND OTHER CRITERIA AS THE WILLIAMS-BRICE STADIUM AT THE UNIVERSITY OF SOUTH CAROLINA IN ORDER TO EXPOSE THE PARTICIPANTS IN THE EVENT TO OTHER COLLEGES AND UNIVERSITIES IN WHICH THEY MAY BE INTERESTED IN ATTENDING.

On motion of Senator SETZLER, the Concurrent Resolution was carried over.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.

MOTION TO RECONSIDER TABLED

S. 960 (Word version) -- Senators McConnell, Leatherman, Thomas, Hayes, Martin, Short, Alexander, Richardson, Ritchie, Sheheen, Campsen, Williams, Ford, O'Dell and Knotts: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; TO AMEND SECTIONS 1 AND 3 OF ARTICLE X, RELATING TO FINANCE AND TAXATION, SO AS TO PROVIDE THAT THE REQUIREMENT THAT TAXATION OF REAL PROPERTY MUST BE UNIFORM APPLIES TO PROPERTY WITHIN A TAXING JURISDICTION RATHER THAN STATEWIDE; AND BY AMENDING SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL ESTABLISH METHODS OF VALUATION FOR COUNTIES TO SELECT FROM FOR ASSESSMENT OF REAL PROPERTY WITHIN THEIR JURISDICTIONS; AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS.

Senator McCONNELL moved to table the motion to reconsider the vote whereby the Resolution was given a third reading on February 21, 2006.

Senator McCONNELL spoke on the motion.

The motion to reconsider the vote whereby the Resolution was given a third reading on February 21, 2006, was tabled.

The Resolution was sent to the House.

MOTION TO RECONSIDER TABLED

S. 1028 (Word version) -- Senators McConnell, Leatherman, Thomas, Hayes, Martin, Short, Alexander, Richardson, Ritchie, Sheheen, Campsen, Williams, Knotts, Courson, Mescher and Ford: A BILL TO AMEND TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 25 IN CHAPTER 37, ENACTING THE "SOUTH CAROLINA PROPERTY TAX ASSESSMENT REFORM ACT", SO AS TO PROVIDE FOR A VALUATION OF REAL PROPERTY FOR PURPOSES OF THE PROPERTY TAX THAT LIMITS THE INCREASE IN TAXABLE VALUE NOT TO EXCEED FIFTEEN PERCENT OVER A FIVE-YEAR PERIOD UNLESS AN ASSESSABLE TRANSFER OF INTEREST OCCURS, TO PROVIDE AN ALTERNATE METHOD THAT IS VALUATION OF REAL PROPERTY AT FAIR MARKET VALUE WITH ASSESSMENT EVERY FIVE YEARS, TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL PROPOSE REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS ACT, AND TO PROVIDE PENALTIES FOR KNOWINGLY FALSIFYING INFORMATION TO THE DEPARTMENT; TO AMEND SECTION 4-9-1210, RELATING TO THE INITIATIVE METHOD OF ENACTING COUNTY ORDINANCES, SO AS TO ALLOW THIS PROCESS TO INCLUDE ORDINANCES ENACTING A REAL PROPERTY VALUATION METHOD PERMITTED BY THIS ACT; TO AMEND SECTION 6-1-50, RELATING TO FINANCIAL REPORTS, SO AS TO REQUIRE SUBMISSION OF ANNUAL FINANCIAL REPORTS TO THE BUDGET AND CONTROL BOARD, OFFICE OF RESEARCH AND STATISTICS, ECONOMIC RESEARCH SECTION; TO REPEAL SECTION 12-37-223A, RELATING TO THE COUNTY OPTION PROPERTY TAX EXEMPTION LIMITING INCREASES IN VALUE DUE TO REASSESSMENT; TO AMEND SECTION 12-43-210, AS AMENDED, RELATING TO THE CLASSIFICATION OF AND VALUATION OF PROPERTY FOR PURPOSES OF PROPERTY TAX, SO AS TO CONFORM VALUATION REFERENCES FOR REAL PROPERTY; TO AMEND SECTION 12-43-217, RELATING TO QUADRENNIAL REASSESSMENT, SO AS TO ALLOW PORTIONS OF A COUNTY TO BE REASSESSED AS A "ROLLING" REASSESSMENT; TO AMEND SECTION 12-43-220, RELATING TO CLASSIFICATIONS OF PROPERTY, SO AS TO CONFORM THE LANGUAGE TO THE PROVISIONS OF THIS ACT; AND TO AMEND SECTION 12-60-2510, RELATING TO PROPERTY TAX NOTICES, SO AS TO ALLOW THAT IN YEARS IN WHICH THERE IS NO NOTICE OF A PROPERTY TAX ASSESSMENT, A TAXPAYER MAY PROTEST THE ASSESSMENT VALUE NINETY DAYS AFTER THE TAX NOTICE IS MAILED.

Senator MARTIN moved to table the motion to reconsider the vote whereby the Bill was given a third reading on February 15, 2006.

Senator MARTIN spoke on the motion.

The motion to reconsider the vote whereby the Bill was given a third reading on February 15, 2006, was tabled.

The Bill was sent to the House.

MOTION ADOPTED

On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.

HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.

CONCURRENCE

S. 46 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 29-5-21, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SURVEYOR'S SERVICES AS MATERIAL FURNISHED FOR THE IMPROVEMENT OF REAL ESTATE, SO AS TO PROVIDE THAT UNDER CERTAIN CONDITIONS, A REAL ESTATE LICENSEE WHO PERFORMS PROFESSIONAL SERVICES FOR THE OWNER OF REAL ESTATE INCIDENT TO A REAL ESTATE TRANSACTION PURSUANT TO A WRITTEN AGREEMENT HAS FURNISHED LABOR OR MATERIAL FOR THE IMPROVEMENT OF REAL ESTATE.

The House returned the Bill with amendments.

On motion of Senator THOMAS, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

AMENDMENT PROPOSED, DEBATE INTERRUPTED

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, 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, TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX, TO EXEMPT THE SALE OF UNPREPARED FOOD, TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE 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, 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, 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.
(ABBREVIATED TITLE)

The Senate proceeded to a consideration of the Bill, the question being the adoption of Amendment P-3B (4449R008.LKG) proposed by Senators GROOMS, SHEHEEN and BRYANT on Thursday, April 13, 2006.

Senator GROOMS asked unanimous consent to make a motion to substitute Amendment No. P-3C for Amendment No. P-3B.

There was no objection and Amendment No. P-3C was substituted and taken up for immediate consideration.

Amendment No. P-3C

Senators GROOMS, SHEHEEN and BRYANT proposed the following Amendment No. P-3C (4449R018.LKG), which was tabled:

Amend the committee amendment, as and if amended, by striking the amendment and inserting:

//   Amend 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 two percent is imposed on amounts taxable pursuant to this chapter. The revenue collected pursuant this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."

SECTION   2.   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.

(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 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. Notwithstanding another provision of this chapter to the contrary, this additional recording fee imposed in this subsection must be deposited in the School Trust Fund established by Section 11-11-155."

SECTION   3.   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 forty-two 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 Trust Fund established pursuant to Section 11-11-155. This additional property tax does not apply to residential real property described in Section 12-43-220(c).

(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 2005-2006, 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   4.   Article 1, Chapter 33 of Title 12 is amended by adding:

"Section 12-33-80.   A surtax is levied on each license, excise, sales, or other tax or surtax on beer, wine, and alcoholic liquors provided by this Title equal to each specific tax. This additional tax must be must be reported, paid, collected, and enforced in the same manner as each specific tax or surtax on beer, wine, and alcoholic liquors provided by this Title. The revenue collected pursuant this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."

SECTION   5.   Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-630.   (A)   In addition to the license tax imposed pursuant to Section 12-21-620(1), there is imposed on all cigarettes made of tobacco or any substitute for tobacco an additional license tax equal to 4.65 cents on each cigarette.

(B)   The additional license tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-620(1). The revenue collected pursuant to this section must be credited to the School Trust Fund established pursuant to Section 11-11-155."

SECTION   6.   Section 12-37-450 of the 1976 Code is amended to read:

"Counties and municipalities School districts must be reimbursed for the revenue lost by counties and municipalities as a result of the business inventory tax exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 1987 tax year. There is credited annually as provided in Section 11-11-150 to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, whatever amount is necessary to reimburse school districts fully all for the revenue lost by counties and municipalities the required amount. The Comptroller General shall make remittances of this reimbursement to school districts as provided in Section 11-11-155 counties and municipalities in four equal payments.

Notwithstanding any other provision of law, business inventory exempted from property taxation in the manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State and for purposes of computing the "index of taxpaying ability" pursuant to item (3) of Section 59-20-20.

Where a portion of a special purpose district is annexed to a municipality, and its service functions in the annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the county and the municipality."

SECTION   7.   Section 12-37-935(B) of the 1976 Code is amended to read:

"(B)   Annually as provided in Section 11-11-150, there is credited to the School Trust Fund for Tax Relief ,established pursuant to Section 11-11-155, an amount sufficient to reimburse school districts for all local taxing entities the amount of revenue not collected by local taxing entities as a result of the additional depreciation more than eighty percent allowed for manufacturer's machinery and equipment pursuant to this section. No reimbursement is allowed for any depreciation allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 11-11-155 12-37-270, mutatis mutandis."

SECTION   8.   Section 11-11-150(A) of the 1976 Code is amended to read:

"(A)   In calculating estimated state individual and corporate income tax revenues for a fiscal year the Board of Economic Advisors shall deduct amounts sufficient to pay the reimbursement required pursuant to:

(1) Section 12-37-251 for the residential property tax exemption;

(2) Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled;

(3) Section 12-37-935(B) for manufacturer's additional depreciation;

(4) Section 12-37-450 for the inventory tax exemption; and

(3 5) Section 4-10-540(A) for the reimbursement provided for personal property taxes not collected on private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors."

SECTION   9.   Section 12-36-2110(A) 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 nine hundred dollars for each sale made or lease executed after June 30, 1984, or lease executed after August 31, 1985 2006, 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 nine hundred 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. "

SECTION   10.   Items (8), (11), (13), (14), (20), (26), (35), (37), (49), (53), (54), (55), and (58) 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;

(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;

(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;

(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;

(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.;

(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."

SECTION   11.   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, the additional surtax imposed on beer, wine, and alcoholic liquors pursuant to Section 12-33-80, the additional tax on cigarettes imposed pursuant to Section 12-21-630, the amount credited pursuant to Sections 12-37-450 and 12-37-935(B), 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, 2006, 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). Notwithstanding the provisions of Section 59-21-1010(A), the amount that would be credited to the general fund must be credited to the School Trust Fund. Notwithstanding the provisions of Section 59-21-1010(B), the amount that would be credited to the Education Improvement Act Fund must be credited to 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.

(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 must only be used for the purposes provided in Sections 12-6-3335 and 12-37-253."

SECTION   12.   Article 25, Chapter 6 of the 1976 Code is amended by adding:

"Section 12-6-   3335.   (A)   As used in this section:

(1)   'Adjusted gross income' means adjusted gross income for federal income tax purposes reported by a property taxpayer in a taxable year to which must be added such income of other individuals in the household if not included in the federal adjusted gross income of the property taxpayer.

(2)   'Household' means the taxpayer's spouse and any dependent over the age of eighteen residing with the taxpayer in the residence.

(3)   'Residence' means residential real property classified for property tax purposes pursuant to Section 12-43-220(c).

(B)   There is allowed as a credit against the tax imposed pursuant to Section 12-6-510 on a resident individual taxpayer a sum equal to the amount by which property tax paid during the taxable year by the taxpayer on the taxpayer's residence exceeds two percent of the taxpayer's adjusted gross income as defined in subsection (A)(1) of this section. After all other applicable credits have been applied, if the credit allowed pursuant to this section exceeds the state individual income tax liability of the claimant, the difference must be refunded to the claimant.

(C)   A copy of the treasurer's receipt for the property tax paid must accompany the claim for the credit allowed pursuant to this section, together with other information the department may require for the proper administration of this credit.

(D)   If a resident individual taxpayer or member of that taxpayer's household is not required to file a federal and South Carolina individual income tax return, the department shall prescribe abbreviated forms for the calculation of adjusted gross income which may be used by the claimant to claim the credit allowed by this section, and these separate forms are considered state individual income tax returns for all purposes.

(E)   Regardless of the amount of property taxes paid or number of residences occupied by a claimant during the applicable taxable year, the credit allowed pursuant to this section only extends to property taxes paid on one residence.

(F)   The credit allowed by this section must be funded by the School Trust Fund established pursuant to Section 11-11-155."

SECTION   13.   Chapter 37 of Title 12 of the 1976 Code is amended by adding:

"Section 12-37-253.   (A)   The fair market value of all property classified pursuant to Section 12-43-220 is exempt from taxes imposed for school operating purposes. In the case of real property classified pursuant to Section 12-43-220(c), any remaining fair market value, after the exemption allowed pursuant to Section 12-37-250 and Section 12-37-251 is applied, otherwise subject to tax is exempt from all taxes imposed for school operating purposes. This section does not exempt the fair market value of property classified pursuant to Section 12-43-220 for taxes imposed for:

(1)   bonded indebtedness for capital construction;

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

(3)   county and municipal operations.

(B)   School districts must be reimbursed monthly from revenues credited to the School Trust Fund established pursuant to Section 11-11-155 for a fiscal year for revenue not received because of the exemptions allowed by this section. Reimbursements must be remitted to each school district based on the district's portion of the total weighted per pupil population for all districts based on the following weights:

(1)   Kindergarten                                 1.30

(2)   Primary                                     1.24

(3)   Elementary                                   1.00

(4)   High school                                   1.25

(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

(16)   Qualify for Free or Reduced Lunch or Medicaid     1.30

The weighted per pupil population for each district must be determined by multiplying the average daily membership for each classification by the weight assigned to that classification and adding the totals for each classification.

(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 and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).

(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. Except, a property taxing entity may levy property taxes for school operations to compensate for the difference for any year that the property taxing entity would receive less revenue for school operations pursuant to this section than the property taxing entity collected in property tax year 2006 adjusted annually by a factor equal to the growth in the amount of annual revenue over the prior year credited to the School Trust Fund as determined by the Board of Economic Advisors. Any property tax levied pursuant to this subsection must not be levied against residential real property described in Section 12-43-220(c).

(E)   In a county area in which is imposed the local option sales tax (LOST) pursuant to Article 1, Chapter 10 of Title 4 on or after July 1, 2005, where the credits allowed pursuant to that article exceed the property tax to which the credit applies, then the excess credit is deemed a distribution from the LOST County/Municipal Revenue Fund."

SECTION   14.   This act takes effect January 1, 2007. 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 2006 and motor vehicle tax years beginning after June 30, 2007. The income tax credit provided by Section 12-6-3335 applies beginning with tax year 2006. / //

Renumber sections to conform.

Amend title to conform.

Senator GROOMS explained the amendment.

PRESIDENT Pro Tempore PRESIDES

At 1:23 P.M., Senator McCONNELL assumed the Chair.

Senator GROOMS explained the amendment.

ACTING PRESIDENT PRESIDES

At 2:38 P.M., Senator MARTIN assumed the Chair.

Senator GROOMS explained the amendment.

Senator SHEHEEN argued in favor of the adoption of the amendment.

ACTING PRESIDENT PRESIDES

At 3:35 P.M., Senator CAMPSEN assumed the Chair.

Senator SHEHEEN argued in favor of the adoption of the amendment.

PRESIDENT Pro Tempore PRESIDES

At 3:53 P.M., Senator McCONNELL assumed the Chair.

Senator SHEHEEN argued in favor of the adoption of the amendment.

Senator MARTIN spoke on the amendment.

Senator ELLIOTT spoke on the amendment.

Senator LAND spoke on the amendment.

PRESIDENT PRESIDES

At 4:39 P.M., the PRESIDENT assumed the Chair.

Senator LAND argued contra to the adoption of the amendment.

Senator HUTTO spoke on the amendment.

Senator MARTIN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 28; Nays 15

AYES

Alexander                 Anderson                  Courson
Drummond                  Elliott                   Gregory
Hawkins                   Hayes                     Jackson
Knotts                    Land                      Leatherman *
Leventis                  Lourie                    Malloy
Martin                    McGill *                  Mescher
Moore                     O'Dell                    Patterson
Peeler                    Rankin                    Ritchie
Scott                     Setzler                   Thomas
Williams

Total--28

NAYS

Bryant                    Campsen                   Cleary
Cromer                    Fair                      Ford
Grooms                    Hutto                     Matthews
McConnell                 Reese                     Richardson
Sheheen                   Short                     Verdin

Total--15

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

Senator MARTIN asked unanimous consent to take up Amendment No. 4A for immediate consideration.

There was no objection and Amendment No. 4A was taken up for immediate consideration.

Amendment No. 4A

Senators KNOTTS, THOMAS and HAWKINS proposed the following Amendment No. 4A (JUD4449.025):

Amend the bill, as and if amended, by striking the bill in its entirety and inserting:

  /   Part I

Property Tax Exemption, Determination of Fair Market Value, and Sales Tax Increase

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, 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.

Section 12-36-1120.   The revenue of the tax imposed by this article must be credited to the Homestead Exemption Fund established pursuant to Section 11-11-155.

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:

"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 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-155.   (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 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.

(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 two 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 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 to reimburse it for any distributions made to supplement reimbursements required to be made from the Homestead Exemption Fund.

(3)   An unexpended balance in the Homestead Exemption Fund or Reserve Fund at the end of a fiscal year must remain in the Homestead Exemption Fund or Reserve Fund.

(4)   Earnings on the Homestead Exemption Fund or Reserve Fund must be credited to the Homestead Exemption Fund or Reserve Fund.

(5)   Nothing in this section prohibits appropriations by the General Assembly of additional revenues to the Homestead Exemption Fund."

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 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 other than the repayment of 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 Sections 14 and 15 of Article X of the Constitution of this State."

SECTION   4.   A.   Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding a new undesignated paragraph at the end of the section to read:

"As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Section 1A, Article X of the Constitution of this State and Section 12-37-932."

B.   Section 12-43-210 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-43-210.   (A)   All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.

(B)   No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."

C.   Section 1B of Act 406 of 2000 is amended to read:

"(B)   The exemption amount of the homestead exemption allowed pursuant to Section 12-37-250 of the 1976 Code is raised from twenty to fifty thousand dollars for property tax year 2000 and thereafter, to be funded as provided herein. The amount appropriated to the Trust Fund for Tax Relief must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. For tax years after 2000, an amount sufficient to fund the exemption provided herein must be appropriated from the Tobacco Settlement Fund, before any reductions or withdrawals as may be provided by law, to the Trust Fund for Tax Relief and must be used to reimburse counties, municipalities, school districts, and special purpose districts, as applicable, for this increased exemption amount in the manner provided in Section 12-37-270 of the 1976 Code. Reserved."

D.     Items (1) and (2) of Section 11-11-150(A) of the 1976 Code, as added by Act 419 of 1998, are amended to read:

"(1)   Section 12-37-251 for the residential property tax exemption Reserved;

(2)   Section 12-37-270 for the homestead exemption for persons over age sixty-five or disabled Reserved;"

E.   Sections 12-37-251, 12-37-270, 12-43-217, 12-43-260, and 12-43-295, all of the 1976 Code, are repealed.

F.   Section 12-37-223A of the 1976 Code is repealed.

SECTION   5.   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.

SECTION   6.   (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:

(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.

SECTION   7.   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

(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)."

  Part II

Distribution of Revenues and Millage Limitations

SECTION   1.   (A)(1)   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. 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. 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 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. 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. 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. 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.

(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 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.

(E)   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.

(F)   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.

SECTION   2.   (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.

(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.

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.   (A)   Beginning with the year 2007, a property taxing entity in this State including a school district may not levy any ad valorem taxation on owner-occupied residential property to which the exemption provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act apply, with the exception of any levy for general obligation bonded debt purposes. A property taxing entity including school districts which violates this provision must have its aid-to-subdivisions allocations in future general appropriations acts reduced until the violation is cured. The millage levied by a property taxing entity for the year 2006 shall be the millage used to determine the property tax revenue lost as a result of the exemptions provided in the new item added to Section 12-37-220(B) of the 1976 Code in Part I of this act.

(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.

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 otherwise applicable total any unused millage from the preceding two tax years."

  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 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 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 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.

  Part III

Miscellaneous Provisions

SECTION   1.   A.     Section 11-27-30 of the 1976 Code, as last amended by Act 27 of 2001, is further amended by adding an item at the end to read:

"9.   For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the State or other associate of any kind of the State is deemed to be the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the State."

B.     Section 11-27-40 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:

"10.   For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the political subdivision of the State or other associate of any kind of the political subdivision of the State is deemed to be the political subdivision of the State when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision of the State."

C.     Section 11-27-50 of the 1976 Code, as last amended by Act 113 of 1999, is further amended by adding an item at the end to read:

"8.   For purposes of this section, a complete or partial successor-in-interest to, or other transferee of, the school district or other associate of any kind of the school district is deemed to be the school district when the successor, transferee, or associate undertakes all or a portion of the operation or assumes all or a portion of a duty of the school district."

D.     The provisions of subsections A., B., and C. of this section apply with regard to all transfers made after July 1, 2006, to which these subsections apply.

SECTION   2.   A.     Section 12-37-670 of the 1976 Code is amended to read:

"Section 12-37-670.   (A)   Each owner of land on which any new structures have been erected which shall not have been appraised for taxation shall list them for taxation with the county auditor of the county in which they may be situate on or before the first day of March next after they shall become subject to taxation. No new structure shall be listed or assessed until it is completed and fit for the use for which it is intended.

(B)(1)   Notwithstanding the provisions of subsection (A), a county governing body may by ordinance provide that an owner of land on which a new structure has been erected and which has not been appraised for taxation shall list the new structure for taxation with the county auditor of the county in which it is located by the first day of the next month after a certificate of occupancy is issued for the structure. A new structure must not be listed or assessed until it is completed and fit for the use for which it is intended, as evidenced by the issuance of the certificate of occupancy.

(2)   Additional property tax attributable to improvements listed with the county auditor on or before June thirtieth is due for the period from July first to December thirty-first for that property year, and payable when taxes are due on the property for that property tax year. Additional property tax attributable to improvements listed with the county auditor after June thirtieth of the property tax year is due and payable when taxes are due on the property for the next property tax year.

(3)   If a county governing body elects by ordinance to impose the provisions of this subsection, this election is also binding on all municipalities within the county imposing ad valorem property taxes."

B.   Section 12-37-680 of the 1976 Code is repealed.

SECTION   3.   Section 12-43-215 of the 1976 Code is amended to read:

"Section 12-43-215.   (A)   When owner-occupied residential property assessed pursuant to Section 12-43-220(c) is valued for purposes of ad valorem taxation, the value of the land must be determined on the basis that its highest and best use is for residential purposes.

(B)   Each county must submit to the Department of Revenue an annual report, in a form to be determined by the department, listing the names and addresses of all residential property in the county which is classified as 'owner-occupied'."

SECTION   4.   Chapter 20, Title 59 of the 1976 Code is amended by adding:

"Section 59-20-21.   Beginning with the year 2007, 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."

SECTION   5.   Chapter 20, Title 59 of the 1976 Code is amended by adding:

"Section 59-20-22.   Notwithstanding a school district's index of taxpaying ability, the minimum state funds a district shall receive in any year is forty percent of the applicable year's base student cost."

  Part IV

Time Effective

SECTION   1.   This act, except as otherwise provided herein and except for Parts III and IV, takes effect upon ratification of amendments to Article X of the Constitution of this State proposed at the general election of 2006 defining fair market value of real property as its fair market value when it's ownership last was transferred, increased by the value of improvements, and providing for an additional exemption from the property tax of one hundred percent of the fair market value of owner-occupied residential property. Parts III and IV of this act take effect upon approval by the Governor.

SECTION   2.   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.

Senator KNOTTS explained the amendment.

Senator MARTIN spoke on the amendment.

Senator HAYES moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 20; Nays 20

AYES

Alexander                 Anderson                  Elliott
Ford                      Gregory                   Hayes
Hutto                     Jackson                   Land
Leventis                  Malloy                    Martin
Matthews                  Mescher                   Patterson
Rankin                    Richardson                Ritchie
Sheheen                   Williams

Total--20

NAYS

Bryant                    Campsen                   Cleary
Courson                   Cromer                    Fair
Grooms                    Hawkins                   Knotts
Lourie                    McConnell                 Moore
Peeler                    Reese                     Ryberg
Scott                     Setzler                   Short
Thomas                    Verdin

Total--20

The PRESIDENT voted "no."

Recorded Vote

Senators LEATHERMAN and McGILL wished the Journal to reflect that they would have voted in favor of the motion to table had they been present in the Chamber at the time the vote was taken.

Senator O'DELL wished the Journal to reflect that he would have voted against the motion to table had he been present in the Chamber at the time the vote was taken.

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator MARTIN spoke on the amendment.

With Senator MARTIN retaining the floor, on motion of Senator McCONNELL, with unanimous consent, debate was interrupted by adjournment.

Motion Adopted

On motion of Senator GREGORY, with unanimous consent, the members of the Committee on Fish, Game and Forestry were granted leave to attend a committee meeting scheduled for 10:00 A.M. tomorrow in the Third Floor Conference Room of the State House.

MOTION ADOPTED
Time Fixed

Senator MARTIN moved that when the Senate adjourns today, it stand adjourned to meet tomorrow, April 19, 2006, at 10:00 A.M., which motion was adopted.

LOCAL APPOINTMENTS
Confirmations

Having received a favorable report from the Abbeville County Delegation, the following appointments were confirmed in open session:

Reappointment, Abbeville County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

George T. Ferguson, P. O. Box 579, Abbeville, S.C. 29620

Reappointment, Abbeville County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

John R. Nixon, 1629 Highway 28 North, Abbeville, S.C. 29620

Having received a favorable report from the Bamberg County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Bamberg County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Ed Freeman, 1810 Carolina Highway, Denmark, S.C. 29042 VICE Franklin Gibson

Reappointment, Bamberg County Magistrate, with term to commence April 30, 2006, and to expire April 30, 2010

Ed Freeman, 1810 Carolina Highway, Denmark, S.C. 29042

MOTION ADOPTED

On motion of Senator HAWKINS, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Gary Wood of Spartanburg, S.C.

ADJOURNMENT

At 6:21 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 10:00 A.M.

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