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


Printed Page 674 . . . . . Tuesday, February 14, 2006

Tuesday, February 14, 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, lift up your hearts, hearing words from Psalm 25:2:

"As the mountains surround Jerusalem, so the Lord surrounds His   people,

From this time forth... and forever."

Let us pray.

Father, we thank You for our weekend at home with our loving families. Thank You for the sacrifices they make to allow us to be here and serve our State and our people.

Help us to do well in our work - with eyes of faith firmly fixed upon You. Uphold us this day that we may run and not be weary - walk and not faint!
Amen!

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

Motion to Ratify Adopted

At 2:24 P.M., Senator McCONNELL asked unanimous consent to make a motion to invite the House of Representatives to attend the Senate Chamber for the purpose of ratifying Acts at 11:15 A.M. on Wednesday, February 15, 2005.

There was no objection and a message was sent to the House accordingly.

Leave of Absence

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

Leave of Absence

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


Printed Page 675 . . . . . Tuesday, February 14, 2006

Leave of Absence

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

Expression of Personal Interest

Senator PINCKNEY rose for an Expression of Personal Interest.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1139 (Word version) -- Senator Matthews: A SENATE RESOLUTION TO HONOR THE LATE DR. THOMAS MOSS OF ORANGEBURG COUNTY FOR HIS OUTSTANDING CONTRIBUTIONS TO HIS CAREER, COMMUNITY, AND COUNTRY AND TO RECOGNIZE HIS IMPORTANT ENDEAVORS.
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The Senate Resolution was adopted.

S. 1140 (Word version) -- Senators Knotts, Bryant and Mescher: A JOINT RESOLUTION TO APPROPRIATE FISCAL YEAR 2005-2006 SURPLUS GENERAL FUND REVENUES FOR THE PURPOSE OF ACCELERATING THE RESTORATION OF ALL FUNDS PREVIOUSLY TRANSFERRED AND APPROPRIATED FROM EARMARKED OR RESTRICTED ACCOUNTS IN THE STATEWIDE ACCOUNTING AND REPORTING SYSTEM (STARS), AND TO APPORTION ANY REMAINING BALANCE OF THESE SURPLUS REVENUES AFTER THE STARS RESTORATION AMONG THE SEVERAL COUNTIES FOR EXPENSES ASSOCIATED WITH CONSTRUCTION OR MAINTENANCE OF ROADS, STREETS, CAUSEWAYS, BRIDGES, AND OTHER PUBLIC WAYS.
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Read the first time and referred to the Committee on Finance.

S. 1141 (Word version) -- Senator Drummond: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-1-17 SO AS TO PROHIBIT A SHERIFF, SOLICITOR, OR COMMISSIONED LAW ENFORCEMENT OFFICER FROM OFFERING FOR OFFICE IN A PARTISAN ELECTION AND


Printed Page 676 . . . . . Tuesday, February 14, 2006

PROHIBIT EACH OF THESE PERSONS FROM AFFILIATING WITH A PARTISAN POLITICAL PARTY.
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Read the first time and referred to the Committee on Judiciary.

S. 1142 (Word version) -- Senator Leatherman: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 56-15-361, 56-15-601, AND 56-16-211 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY IMPOSE AN ADMINISTRATIVE FINE AGAINST A MOTOR VEHICLE DEALER OR WHOLESALER WHO HAS VIOLATED A PROVISION RELATED TO DEALING IN MOTOR VEHICLES, TO PROVIDE FOR THE ADMINISTRATIVE REVIEW OF A FINE IMPOSED PURSUANT TO THESE SECTIONS, AND TO PROVIDE FOR THE DISPOSITION OF THE FINES COLLECTED PURSUANT TO THESE PROVISIONS.
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Read the first time and referred to the Committee on Transportation.

S. 1143 (Word version) -- Banking and Insurance Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF CONSUMER AFFAIRS, RELATING TO FEES AND CHARGES OF CONSUMER CREDIT COUNSELING ORGANIZATION LICENSEES, DESIGNATED AS REGULATION DOCUMENT NUMBER 2995, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1144 (Word version) -- Senator Scott: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE LANCE CORPORAL TILLMAN U. MILLHOUSE, JR. OF CHARLESTON COUNTY FOR HIS YEARS OF SERVICE TO THE FIELD OF LAW ENFORCEMENT AND FOR HIS UNWAVERING COMMITMENT TO THE PROTECTION OF HIS COMMUNITY.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 1145 (Word version) -- Senators Martin, McConnell, Ford, Knotts and Jackson: A BILL TO AMEND SECTION 7-13-50, CODE OF LAWS OF SOUTH


Printed Page 677 . . . . . Tuesday, February 14, 2006

CAROLINA, 1976, RELATING TO SECOND AND OTHER PRIMARIES, SO AS TO PROVIDE THAT A SECOND PRIMARY, WHEN NECESSARY, MUST BE HELD FOUR WEEKS AFTER THE FIRST PRIMARY.
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Senator MARTIN spoke on the Bill.

Read the first time and referred to the Committee on Judiciary.

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, BY ADDING SECTIONS 12-36-1110, 12-36-1120, AND 12-36-1130 SO AS TO IMPOSE AN ADDITIONAL TWO PERCENT SALES AND USE TAX; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE SALE OF UNPREPARED FOOD; TO ADD SECTION 11-11-155 SO AS TO CREATE THE HOMESTEAD EXEMPTION FUND AND RESERVE FUND; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE AN ADDITIONAL EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF THE FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY FROM THE PROPERTY TAX, AND TO PROVIDE THAT THIS EXEMPTION WITH CERTAIN EXCEPTIONS DOES NOT APPLY WITH RESPECT TO PROPERTY TAX IMPOSED FOR PAYMENT OF GENERAL OBLIGATION DEBT; TO ADD SECTION 12-37-932 SO AS TO PROVIDE THAT THE FAIR MARKET VALUE OF REAL PROPERTY FOR PURPOSES OF THE PROPERTY TAX IS ITS FAIR MARKET VALUE AS APPRAISED IN THE MANNER PROVIDED BY LAW WHEN OWNERSHIP OF THE REAL PROPERTY LAST WAS TRANSFERRED, INCREASED BY THE FAIR MARKET VALUE OF IMPROVEMENTS MADE TO THE REAL PROPERTY SINCE OWNERSHIP OF THE REAL


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PROPERTY LAST WAS TRANSFERRED, TO PROVIDE THAT ON THE FIRST DAY OF JANUARY IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF THIS PROVISION THE DUTIES, POWERS, AND FUNCTIONS OF LOCAL COUNTY PROPERTY TAX ASSESSORS ARE TRANSFERRED TO AND DEVOLVED UPON THE PROPERTY TAX DIVISION OF THE STATE DEPARTMENT OF REVENUE, TO PROVIDE THAT THE SALES TAX EXEMPTIONS IN SECTION 12-36-2120 SHALL BE REVIEWED BY THE GENERAL ASSEMBLY EVERY TEN YEARS BEGINNING IN 2010; TO AMEND SECTIONS 11-11-150, 12-43-210, AND 12-43-220, ALL AS AMENDED, RELATING TO THE TRUST FUND FOR TAX RELIEF, REASSESSMENT AND THE VALUATION AND CLASSIFICATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO MAKE CONFORMING AMENDMENTS AND OTHER CHANGES TO REFLECT THESE PROVISIONS; TO AMEND ACT 406 OF 2000, RELATING TO, AMONG OTHER THINGS, THE HOMESTEAD EXEMPTION, SO AS TO DELETE AN OBSOLETE PROVISION; TO REPEAL SECTIONS 12-37-223A, 12-37-270, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX; TO PROVIDE FOR THE MANNER, AMOUNT, AND CONDITIONS UNDER WHICH REVENUES IN THE HOMESTEAD EXEMPTION FUND SHALL BE DISBURSED TO PROPERTY TAXING ENTITIES OF THIS STATE INCLUDING SCHOOL DISTRICTS TO REIMBURSE THEM FOR THE REVENUE LOST AS A RESULT OF THE PROPERTY TAX EXEMPTIONS; TO PROVIDE THAT LOCAL SALES TAX AND LOCAL OPTION SALES TAX REVENUES PROVIDING PROPERTY TAX RELIEF TO OWNER-OCCUPIED RESIDENTIAL PROPERTY SHALL BE APPLIED FOR PROPERTY TAX RELIEF TO OTHER CLASSES OF PROPERTY; TO ADD SECTION 4-9-56 SO AS TO LIMIT THE MILLAGE PROPERTY TAXING ENTITIES OF THIS STATE MAY IMPOSE ON PROPERTY OTHER THAN OWNER-OCCUPIED RESIDENTIAL PROPERTY, AND TO PROVIDE FOR A SUPERMAJORITY VOTE OF THE GOVERNING BODY OF THE ENTITY TO EXCEED THIS LIMITATION; TO PROVIDE THAT ALL OF THE ABOVE PROVISIONS ARE CONTINGENT UPON RATIFICATION OF CERTAIN CONSTITUTIONAL AMENDMENTS TO ARTICLE X OF THE STATE CONSTITUTION PROVIDING FOR AN ADDITIONAL HOMESTEAD PROPERTY TAX EXEMPTION, DETERMINATION

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OF FAIR MARKET VALUE OF PROPERTY, AND RELATED MATTERS; TO AMEND SECTIONS 11-27-30, 11-27-40, AND 11-27-50, ALL AS AMENDED, RELATING TO THE EFFECT OF ARTICLE X OF THE SOUTH CAROLINA CONSTITUTION ON BONDS OF THE STATE, POLITICAL SUBDIVISIONS OF THE STATE, AND SCHOOL DISTRICTS, RESPECTIVELY, SO AS TO DEEM AFTER JULY 1, 2006, A COMPLETE OR PARTIAL SUCCESSOR-IN-INTEREST TO, OR OTHER TRANSFEREE OF, OR OTHER ASSOCIATE OF THE STATE, A POLITICAL SUBDIVISION, OR A SCHOOL DISTRICT TO BE THE STATE, POLITICAL SUBDIVISION, OR SCHOOL DISTRICT FOR BONDING PURPOSES WHEN THE SUCCESSOR, TRANSFEREE, OR ASSOCIATE UNDERTAKES ALL OR A PORTION OF THE OPERATION OR ASSUMES ALL OR A PORTION OF A DUTY OF THE STATE, POLITICAL SUBDIVISION, OR SCHOOL DISTRICT; TO AMEND SECTION 12-37-670, RELATING TO LISTING AND ASSESSMENT OF NEW STRUCTURES FOR PROPERTY TAX PURPOSES, SO AS TO AUTHORIZE A COUNTY GOVERNING BODY BY ORDINANCE TO REQUIRE THAT A NEW STRUCTURE BE LISTED BY THE FIRST DAY OF THE MONTH AFTER THE CERTIFICATE OF OCCUPANCY IS ISSUED FOR THE STRUCTURE AND TO PROVIDE FOR THE TIMING OF PAYMENT OF TAXES DUE; TO REPEAL SECTION 12-37-680 RELATING TO A LOCAL COUNTY ORDINANCE ADOPTING THE SAME RULE; TO AMEND SECTION 12-43-215, RELATING TO OWNER-OCCUPIED RESIDENTIAL PROPERTY IN CONNECTION WITH AD VALOREM PROPERTY TAXATION, SO AS TO REQUIRE EACH COUNTY TO SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT OF REVENUE LISTING THE NAMES AND ADDRESSES OF ALL PROPERTY CLASSIFIED AS "OWNER-OCCUPIED"; TO ADD SECTION 59-20-21 SO AS TO PROVIDE THAT BEGINNING WITH THE YEAR 2006, THE STATE BOARD OF EDUCATION, IN DETERMINING THE MINIMUM EDUCATION PROGRAM DESIGNED TO MEET STUDENTS' NEEDS, MAY ONLY CONSIDER FACTORS REQUIRED BY STATUTORY LAW OR WHICH DIRECTLY AFFECT CLASSROOM LEARNING, AND THE LOCAL MAINTENANCE OF EFFORT REQUIRED OF A SCHOOL DISTRICT MUST BE BASED ON THESE DETERMINATIONS; TO ADD SECTION 59-20-22 SO AS TO PROVIDE THAT NOTWITHSTANDING A SCHOOL DISTRICT'S INDEX OF

Printed Page 680 . . . . . Tuesday, February 14, 2006

TAXPAYING ABILITY, THE MINIMUM STATE FUNDS A SCHOOL DISTRICT SHALL RECEIVE IN ANY YEAR IS FORTY PERCENT OF THE APPLICABLE YEAR'S BASE STUDENT COST, AND TO PROVIDE FOR THE MANNER IN WHICH ALL OF THESE PROVISIONS SHALL TAKE EFFECT OR BE REPEALED.

Read the first time and referred to the Committee on Finance.

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

Read the first time and referred to the Committee on Finance.

H. 4520 (Word version) -- Rep. Witherspoon: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE BRIDGE ALONG HIGHWAY 19 THAT CROSSES SOUTH CAROLINA HIGHWAY 22 IN HORRY COUNTY THE "LEWIS A. SINGLETON BRIDGE" AND TO ERECT APPROPRIATE MARKERS AT THIS BRIDGE THAT CONTAIN THE WORDS "LEWIS A. SINGLETON BRIDGE".

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4577 (Word version) -- Reps. Hodges, R. Brown and Bowers: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE FUTURE BRIDGE THAT WILL CROSS THE COMBAHEE RIVER ALONG UNITED STATES HIGHWAY 17 IN COLLETON COUNTY "THE HARRIET TUBMAN BRIDGE", AND ERECT APPROPRIATE MARKERS OR SIGNS AT THIS BRIDGE THAT CONTAIN THE WORDS "THE HARRIET TUBMAN BRIDGE."

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4585 (Word version) -- Reps. Simrill, Bowers, Kennedy, Duncan, Bannister, Ceips, Cobb-Hunter, Leach, Limehouse, Littlejohn, Ott and Scarborough: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-682 SO AS


Printed Page 681 . . . . . Tuesday, February 14, 2006

TO DESIGNATE BOILED PEANUTS AS THE OFFICIAL STATE SNACK FOOD.

Read the first time and referred to the General Committee.

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

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

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

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

REPORT OF STANDING COMMITTEE

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

H. 3554 (Word version) -- Rep. Huggins: A BILL TO AMEND SECTION 56-9-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO QUALIFYING AS A SELF-INSURER FOR MOTOR VEHICLES, SO AS TO PROVIDE THAT AN IRREVOCABLE LETTER OF CREDIT ISSUED BY A BANK CHARTERED IN THIS STATE OR A MEMBER BANK OF THE FEDERAL RESERVE SYSTEM MAY BE SUBMITTED TO THE DEPARTMENT OF MOTOR VEHICLES IN LIEU OF THE CASH DEPOSIT REQUIRED TO BE SUBMITTED TO DETERMINE FINANCIAL RESPONSIBILITY OF A POTENTIAL SELF-INSURER, AND TO PROVIDE THAT A PERSON OR COMPANY THAT QUALIFIES AS A SELF-INSURER MAY ISSUE CERTIFICATES OF


Printed Page 682 . . . . . Tuesday, February 14, 2006

INSURANCE FOR ALL PURPOSES ONLY ON THE VEHICLES LISTED IN THE APPLICANT'S NAME; AND TO AMEND SECTION 58-23-1240, RELATING TO THE PUBLIC TAXI PLATE WHICH MUST BE AFFIXED TO A TAXI, SO AS TO PROVIDE THAT THE PLATE MUST BE AFFIXED ONLY TO THE REAR OF A TAXI, TO PROVIDE THAT A STICKER MAY BE AFFIXED TO THE TAXI IN LIEU OF A METAL PLATE, TO PROVIDE THAT THE CITY WHERE THE TAXI PRINCIPALLY OPERATES MUST APPROVE THE DIMENSIONS OF THE STICKER OR PLATE INSTEAD OF THE GOVERNING BODY OF THE COUNTY, TO REMOVE THE TERM "PUBLIC" AND THE TAXI LICENSE NUMBER FROM THE CONTENTS OF THE STICKER OR PLATE, TO DELETE THE REQUIREMENT THAT THE COLOR OF THE PLATE MUST BE CHANGED ANNUALLY, AND TO PROVIDE THAT THE OWNER OF A TAXI THAT QUALIFIES AS A SELF-INSURER MUST ISSUE TO EACH OPERATOR OF THE TAXI A CERTIFICATE OF INSURANCE WHICH MUST BE MAINTAINED IN THE TAXI WHILE IT IS IN OPERATION.

Ordered for consideration tomorrow.

Message from the House

Columbia, S.C., February 9, 2006

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:

S. 1026 (Word version) -- Senators Leatherman, Leventis, Setzler, Rankin, McGill, Short, Martin, Sheheen, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Cromer, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hawkins, Hayes, Hutto, Jackson, Knotts, Land, Lourie, Malloy, Matthews, McConnell, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Reese, Richardson, Ritchie, Ryberg, Scott, J. Verne Smith, Thomas, Verdin and Williams: A JOINT RESOLUTION TO APPROPRIATE FROM THE GENERAL FUND OF THE STATE TO THE STATE'S GENERAL DEPOSIT ACCOUNT FISCAL YEAR 2004-2005 SURPLUS REVENUES IN THE AMOUNT OF $104,934,400 FOR THE PURPOSE OF PREVENTING AN


Printed Page 683 . . . . . Tuesday, February 14, 2006

ACCUMULATED GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) GENERAL FUND DEFICIT.
asks for a Committee of Conference, and has appointed Reps. Cooper, Kirsh and Hinson to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

S. 1026--CONFERENCE COMMITTEE APPOINTED

S. 1026 (Word version) -- Senators Leatherman, Leventis, Setzler, Rankin, McGill, Short, Martin, Sheheen, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Cromer, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hawkins, Hayes, Hutto, Jackson, Knotts, Land, Lourie, Malloy, Matthews, McConnell, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Reese, Richardson, Ritchie, Ryberg, Scott, J. Verne Smith, Thomas, Verdin and Williams: A JOINT RESOLUTION TO APPROPRIATE FROM THE GENERAL FUND OF THE STATE TO THE STATE'S GENERAL DEPOSIT ACCOUNT FISCAL YEAR 2004-2005 SURPLUS REVENUES IN THE AMOUNT OF $104,934,400 FOR THE PURPOSE OF PREVENTING AN ACCUMULATED GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) GENERAL FUND DEFICIT.

Whereupon, Senators LEATHERMAN, GROOMS and McGILL were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., February 9, 2006

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:

H. 3221 (Word version) -- Reps. Clemmons, Rice, Simrill, Mahaffey, Wilkins, Harrell, Harrison, Cato, J. Brown, Townsend, Edge, Merrill, Chellis, Ott, R. Brown, Mack, Barfield, Witherspoon, Duncan, M.A. Pitts, Owens, Chalk, Bailey, Ceips, Haley, Viers, Hardwick and Toole: A BILL TO AMEND ARTICLE 5, CHAPTER 6, TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS ACT (SCRIPTS), SO AS TO CHANGE THE NAME OF THIS ACT TO THE SOUTH CAROLINA


Printed Page 684 . . . . . Tuesday, February 14, 2006

RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS-SILVERXCARD ACT AND TO PROVIDE THAT THE SCRIPTS-SILVERXCARD PROGRAM MUST COORDINATE WITH MEDICARE PART D TO PROVIDE TO LOW INCOME SENIOR RESIDENTS ASSISTANCE WITH THE COST OF PRESCRIPTION DRUGS, TO REQUIRE THAT A PARTICIPANT BE ENROLLED IN A MEDICARE PART D DRUG PLAN, TO CLARIFY OTHER ELIGIBILITY CRITERIA, TO SPECIFY THAT AN ENROLLEE IS ENTITLED TO BENEFITS WHEN THE ENROLLEE'S ANNUAL OUT-OF-POCKET DRUG EXPENSES REACH THE POINT THAT STANDARD MEDICARE PART D BENEFITS ARE NO LONGER AVAILABLE AND THAT BENEFITS TERMINATE WHEN THE PARTICIPANT'S ANNUAL OUT-OF-POCKET EXPENSES REACH THE POINT THAT CATASTROPHIC MEDICARE PART D BENEFITS ARE AVAILABLE, AND TO PROVIDE THAT IF REVENUE IS GENERATED FOR THE PROGRAM FROM OTHER SOURCES, THIS ADDITIONAL REVENUE MUST BE USED TO FUND PROGRAM BENEFITS AND MAKE PAYMENTS, AS MAY BE REQUIRED, UNDER THE FEDERAL MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003; AND TO REPEAL CHAPTER 130, TITLE 44, RELATING TO THE SOUTH CAROLINA SENIORS' PRESCRIPTION DRUG PROGRAM ACT.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

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

HOUSE BILL RETURNED

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

H. 4513 (Word version) -- Reps. Cobb-Hunter, Ceips, Hinson, Leach and M.A. Pitts: A BILL TO AMEND ACT 166 OF 2005, RELATING TO CRIMINAL DOMESTIC VIOLENCE OFFENSES AND THEIR PENALTIES, SO AS TO EXTEND THE TIME PERIOD THAT THE STUDY COMMITTEE ON CRIMINAL DOMESTIC VIOLENCE ISSUES


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CREATED BY THIS ACT IS SCHEDULED TO REPORT ITS RECOMMENDATIONS TO THE GENERAL ASSEMBLY FROM FEBRUARY 15, 2006, TO THE APPROPRIATE TIME AFTER THE COMMITTEE HAS DETERMINED ITS RECOMMENDATIONS AND A FINAL REPORT OF THE COMMITTEE IS SUBMITTED TO THE GENERAL ASSEMBLY.

THIRD READING BILLS

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

S. 150 (Word version) -- Senators Campsen, Fair and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-3-240 TO ENACT THE "FAMILY COURT FINANCIAL PRIVACY ACT" SO AS TO PROVIDE THAT A FINANCIAL DECLARATION MADE A PART OF THE RECORD IN A MATTER BEFORE THE FAMILY COURT IS CONFIDENTIAL AND NOT SUBJECT TO DISCLOSURE TO THE PUBLIC; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO EXEMPTIONS FROM THE FREEDOM OF INFORMATION ACT, SO AS TO EXEMPT FINANCIAL DECLARATIONS IN MATTERS BEFORE THE FAMILY COURT.

S. 1012 (Word version) -- Senators McConnell, Ritchie and Ford: A BILL TO AMEND SECTION 2-19-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PLEDGING, SO AS TO PROHIBIT A PERSON OR JUDICIAL CANDIDATE FROM DIRECTLY OR INDIRECTLY SEEKING THE PLEDGE OF A MEMBER OF THE GENERAL ASSEMBLY REGARDING SCREENING FOR ANY JUDICIAL OFFICE UNTIL THE QUALIFICATIONS OF ALL THE CANDIDATES HAVE BEEN DETERMINED BY THE JUDICIAL MERIT SELECTION COMMISSION AND THE COMMISSION HAS FORMALLY RELEASED ITS REPORT.

Senator RITCHIE explained the Bill.

S. 1012--Co-Sponsor Added

On motion of Senator RICHARDSON, with unanimous consent, the name of Senator RICHARDSON was added as a co-sponsor of S. 1012.


Printed Page 686 . . . . . Tuesday, February 14, 2006

S. 1114 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 34-1-20 OF THE 1976 CODE, RELATING TO THE APPOINTMENT OF MEMBERS TO THE STATE BOARD OF FINANCIAL INSTITUTIONS, TO PROVIDE THAT ONE MEMBER OF THE BOARD MUST BE A RESTRICTED OR SUPERVISED LENDER RECOMMENDED BY THE INDEPENDENT CONSUMER FINANCE ASSOCIATION.

AMENDED, READ THE SECOND TIME

S. 1021 (Word version) -- Senators Grooms, Mescher and Campsen: A BILL TO REQUIRE A SPECIAL CALCULATION OF THE ROLLBACK PROPERTY TAX MILLAGE IMPOSED FOR SCHOOL OPERATIONS IN BERKELEY COUNTY IN LIEU OF THE ROLLBACK MILLAGE CALCULATED IN THE MANNER PROVIDED BY GENERAL LAW.

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

Senator MESCHER proposed the following Amendment No. 1 (JUD1021.001), which was adopted:

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

/   SECTION   1.   Notwithstanding any other provision of law relating to the calculation of rollback millage, in Berkeley County, the millage imposed by the Berkeley County Board of Education for school operations and the Berkeley County Council for county operations must be rolled back to a millage calculated to generate no more property tax revenue for school and county operations than was collected in the county for that purpose for the property tax year preceding the rollback year. Notwithstanding any other provision of local law relating to the fiscal authority of the Berkeley County Board of Education or the Berkeley County Council or the law applicable to school districts and county councils generally, the special rollback millage required to be imposed for school or council operations pursuant to this act in a rollback year may not be increased by the Berkeley County Board of Education or the Berkeley County Council.

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

Amend title to conform.

Senator MESCHER moved that the amendment be adopted.


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Pursuant to the provisions of Rule 51 (weighted vote shown in parentheses below),   the "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 1; Nays 2

AYES

Mescher (59.11)

Total--1 (59.11)

NAYS

Campsen (5.48)            Grooms (35.44)            

Total--2 (40.92)

By a weighted vote of 59.11 to 40.92, the amendment was adopted.

Statement by Senators CAMPSEN and GROOMS

We voted against this amendment because it violates Article VIII, Section 7 of the South Carolina Constitution, which provides, "No laws for a specific county shall be exempted from the general law or laws applicable to the selected alternative form of government.

The Bill as introduced does not violate this section or any of the Home Rule amendments to the South Carolina Constitution pursuant to the holding in Moye v. Caughman (1975).

The question then was the second reading of the Bill.

Point of Order

Senator LEVENTIS raised a Point of Order that under Rule 26E the Bill did not contain a fiscal impact statement and, therefore, could not receive second reading.

Senator MESCHER spoke on the Point of Order.

Senator MARTIN spoke on the Point of Order.

Senator LEATHERMAN spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

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


Printed Page 688 . . . . . Tuesday, February 14, 2006

S. 1021--Ordered to a Third Reading

On motion of Senator MESCHER, with unanimous consent, S. 1021 was ordered to receive a third reading on Wednesday, February 15, 2006.

COMMITTED

S. 1138 (Word version) -- Judiciary Committee: A BILL TO ENACT THE "SEX OFFENDER ACCOUNTABILITY AND PROTECTION OF MINORS ACT OF 2006" BY AMENDING SECTION 16-3-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUNISHMENT FOR MURDER, SO AS TO ADD TO THE LIST OF AGGRAVATING CIRCUMSTANCES THAT THE MURDER WAS COMMITTED BY A PERSON DEEMED A SEXUALLY VIOLENT PREDATOR; TO AMEND SECTION 16-3-655, RELATING TO CRIMINAL SEXUAL CONDUCT WITH A MINOR, SO AS TO REVISE THE PENALTIES; TO AMEND SECTION 23-3-460, RELATING TO ANNUAL REGISTRATION FOR LIFE FOR PURPOSES OF THE SEX OFFENDER REGISTRY, SO AS TO PROVIDE FOR REGISTRATION EVERY SIX MONTHS RATHER THAN ANNUALLY; TO AMEND SECTION 23-3-530, RELATING TO THE PROTOCOL MANUAL DEVELOPED BY THE STATE LAW ENFORCEMENT DIVISION FOR THE SEX OFFENDER REGISTRY, SO AS TO PROVIDE CERTAIN NONEXCLUSIVE REQUIREMENTS THAT MUST BE INCLUDED IN THE PROTOCOL MANUAL; TO AMEND SECTION 23-3-540, RELATING TO THE ELECTRONIC MONITORING OF SEX OFFENDERS, SO AS TO ESTABLISH THE PERSONS WHO SHALL OR MAY BE ELECTRONICALLY MONITORED AND TO ESTABLISH THE PROCEDURES FOR MONITORING SUCH PERSONS; AND TO AMEND SECTION 23-3-550, RELATING TO HARBORING OR CONCEALING SEX OFFENDERS, SO AS TO REVISE THE OFFENSE OF ASSISTING OR HARBORING UNREGISTERED SEX OFFENDERS.

Senator LEATHERMAN asked unanimous consent to commit the Bill to the Committee on Finance, retaining its place on the Calendar.

There was no objection.

The Bill was committed to the Committee on Finance.


Printed Page 689 . . . . . Tuesday, February 14, 2006

ADOPTED

S. 1109 (Word version) -- Senator Cleary: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF UNITED STATES HIGHWAY 701 IN GEORGETOWN COUNTY FROM ITS INTERSECTION WITH NORTH STREET TO ITS INTERSECTION WITH BROWNS FERRY ROAD "AIRMAN FIRST CLASS CARL ANDERSON, JR. MEMORIAL HIGHWAY" AND ERECT APPROPRIATE SIGNS OR MARKERS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "AIRMAN FIRST CLASS CARL ANDERSON, JR. MEMORIAL HIGHWAY" IN HONOR OF A BRAVE SON OF SOUTH CAROLINA WHO MADE THE ULTIMATE SACRIFICE WHILE DEFENDING HIS COUNTRY IN IRAQ.

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

H. 4040 (Word version) -- Reps. Cooper, Tripp, Cato, Haskins, Leach, Loftis, G.R. Smith and Vaughn: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 20 FROM ITS INTERSECTION WITH INTERSTATE HIGHWAY 185 (THE SOUTHERN CONNECTOR) IN GREENVILLE COUNTY TO THE BRIDGE THAT CROSSES THE SALUDA RIVER AT THE GREENVILLE-ANDERSON COUNTY LINE THE "SERGEANT JOE R. HOOPER HIGHWAY", AND TO ERECT APPROPRIATE SIGNS OR MARKERS ALONG THIS PORTION OF HIGHWAY THAT CONTAIN THE WORDS "SERGEANT JOE R. HOOPER HIGHWAY".

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

H. 4470 (Word version) -- Reps. Bailey, Chellis, Harrell and Young: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERCHANGE LOCATED AT THE INTERSECTION OF UNITED STATES HIGHWAY 78 AND UNITED STATES HIGHWAY 15 IN THE CITY OF ST. GEORGE THE "NELL BENNETT INTERCHANGE", AND ERECT APPROPRIATE SIGNS OR MARKERS AT THIS INTERCHANGE THAT CONTAIN THE WORDS "NELL BENNETT INTERCHANGE".

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


Printed Page 690 . . . . . Tuesday, February 14, 2006

CARRIED OVER

The following Bills were carried over as follows:

S. 991 (Word version) -- Senators Ryberg, Land and Moore: A BILL TO AMEND SECTION 34-21-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SECURING OF FUNDS RECEIVED OR HELD IN TRUST BY A BANK OR TRUST COMPANY, SO AS TO FURTHER PROVIDE FOR ACCEPTABLE FORMS OF SECURITY.

Senator RYBERG explained the Bill.

On motion of Senator LEATHERMAN, with unanimous consent, the Bill was carried over.

S. 1082 (Word version) -- Senators Moore, Rankin, Alexander and McConnell: A BILL TO AMEND THE 1976 CODE, RELATING TO VARIOUS POWERS, DUTIES, AND FUNCTIONS OF THE PUBLIC SERVICE COMMISSION, TO CONFORM THESE PROVISIONS TO ACT 175 OF 2004.
(ABBREVIATED TITLE)

On motion of Senator RITCHIE, with unanimous consent, the Bill was carried over.

AMENDMENT PROPOSED, CARRIED OVER

S. 687 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 56-3-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXEMPTION OF CERTAIN BOAT TRAILERS, FARM TRAILERS, AND UTILITY TRAILERS FROM BEING LICENSED OR REGISTERED, SO AS TO PROVIDE THAT CERTAIN TRAILERS THAT ARE USED IN CONNECTION WITH A BUSINESS VENTURE OF ITS OWNER ARE EXEMPT FROM BEING LICENSED OR REGISTERED; AND TO AMEND SECTION 56-5-4580, AS AMENDED, RELATING TO LIGHTING EQUIPMENT THAT MUST BE ATTACHED TO BUSES, TRUCKS, TRAILERS, SEMITRAILERS, AND POLE TRAILERS, SO AS TO REQUIRE ALL TRAILERS, SEMITRAILERS, AND POLE TRAILERS WEIGHING THREE THOUSAND POUNDS GROSS OR LESS TO BE EQUIPPED WITH ONE STOP LIGHT.


Printed Page 691 . . . . . Tuesday, February 14, 2006

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

Senator GROOMS proposed the following amendment (S-Res\Amend\LKG):

Amend the committee amendment, as and if amended, page [687-1] by inserting an appropriately numbered section:

/   SECTION ___.   Section 56-3-130 of the 1976 Code is amended to read:

"Section 56-3-130.   Boat trailers under twenty-five hundred pounds, farm trailers, and other utility trailers which are privately owned and not for hire or used in connection with a business venture of its owner need not be licensed or registered."

Amend the committee amendment further, as and if amended, page [687-1] by striking lines 28 through 34 and inserting:

/   "(6)   On every licensed or registered trailer, semitrailer, or pole trailer weighing three thousand pounds gross or less, on the rear two reflectors, one on each side. If a trailer or semitrailer is loaded or is of dimensions so as to obscure the stop light on the towing vehicle or is displaying a license plate or is registered and licensed, then the vehicle trailer also must be equipped with one stop light visible from its back;"/

Renumber sections to conform.

Amend title to conform.

Senator GROOMS explained the amendment.

On motion of Senator RANKIN, with unanimous consent, the proposed amendment and Bill were carried over.

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

MOTION ADOPTED

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


Printed Page 692 . . . . . Tuesday, February 14, 2006

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

NONCONCURRENCE

H. 3010 (Word version) -- Reps. W.D. Smith, Wilkins, G.R. Smith, Vaughn, Harrison, Davenport, Sandifer, Coates, Young, Leach, Viers, Littlejohn, Rice, Hinson, Clark, Walker, Mahaffey, Duncan, Hagood and Clemmons: A BILL TO AMEND CHAPTER 40, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CHARTER SCHOOLS, SO AS TO PROVIDE FOR THE CREATION OF A CAROLINA PUBLIC CHARTER SCHOOL DISTRICT, ITS GOVERNANCE, AND ITS POWERS AND DUTIES; AND TO PROVIDE FOR THE MANNER IN WHICH A CHARTER SCHOOL SPONSORED BY THE CAROLINA PUBLIC CHARTER SCHOOL DISTRICT MUST BE FORMED, FUNDED, REGULATED, AND GOVERNED.

The House returned the Bill with amendments.

On motion of Senator HAYES, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
READ THE SECOND TIME
RETURNED TO THE STATUS OF SPECIAL ORDER

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 "POINT OF SALE" VALUATION OF REAL PROPERTY FOR PURPOSES OF THE PROPERTY TAX AND TO PROVIDE ALTERNATE METHODS WHICH MAY BE USED IN COUNTIES FOR THE VALUATION OF REAL PROPERTY FOR PURPOSES OF PROPERTY THAT INCLUDE A CURRENT FAIR MARKET VALUE METHOD, A CURRENT FAIR MARKET VALUE METHOD SUBJECT TO


Printed Page 693 . . . . . Tuesday, February 14, 2006

ANNUAL LIMITS IN INCREASES IN THE VALUE OF SUCH VALUE ATTRIBUTABLE TO INFLATION, AND A FAIR MARKET VALUE METHOD DETERMINED IN COUNTYWIDE APPRAISALS IMPLEMENTED EVERY FIFTH YEAR; 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 FINANCIAL REPORTS TO THE BUDGET AND CONTROL BOARD, OFFICE OF RESEARCH AND STATISTICS, ECONOMIC RESEARCH SECTION; TO AMEND SECTION 12-37-251, RELATING TO THE RESIDENTIAL PROPERTY TAX EXEMPTION, SO AS TO DELETE REFERENCES TO THE ROLLBACK CALCULATIONS REQUIRED AFTER REASSESSMENT; TO AMEND SECTION 12-43-220, 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 REPEAL SECTION 12-37-223A, RELATING TO THE COUNTY OPTION PROPERTY TAX EXEMPTION LIMITING INCREASES IN VALUE DUE TO REASSESSMENT; AND TO REPEAL SECTIONS 12-43-210, 12-43-217, 12-43-250, 12-43-260, AND 12-43-295, ALL RELATING TO PROPERTY TAX AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS ACT.

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

Amendment No. P-1

Senator THOMAS proposed the following Amendment No. P-1 (BBM\9245HTC06), which was tabled:

Amend the committee report, as and if amended, in Article 25, as contained in SECTION 1, beginning on page [1028-3] by striking subarticles 3 and 5 and inserting:

  / "Subarticle 3

Valuation of Real Property

Section 12-37-3310.   As used in this subarticle:

(1)   'Additions' or 'improvements' mean an increase in the value of an existing parcel of real property because of:


Printed Page 694 . . . . . Tuesday, February 14, 2006

(a)   new construction;

(b)   reconstruction;

(c)   major additions to the boundaries of the property or a structure on the property;

(d)   remodeling; or

(e)   renovation and rehabilitation, including installation.

Additions or improvements do not include minor construction or ongoing maintenance and repair of existing structures. The repair or reconstruction of a structure damaged or destroyed by a disaster, to include, but not be limited to, construction defects, defective materials, fire, wind, hail, flood, and acts of God, is not an addition or improvement to the extent that the structure as repaired or reconstructed is similar in size, utility, and function of the structure damaged or destroyed, and the rebuilding or reconstruction is begun within eight years after determination of the damage or destruction. Construction of facilities in a home that make the home handicapped accessible is not an addition or improvement if the utility and function of the structure remains unchanged.

(2)   'Appraisal' or 'appraised' means the process provided by law for the property tax assessor to determine the fair market value of real property and additions and improvements to real property.

(3)   'Assessable transfer of interest' means a transfer of an existing interest in real property that subjects the real property to appraisal. For purposes of this definition, an existing interest in real property includes life estate interests and the beneficial use of the property when the fair market value of that beneficial use is substantially equal to the fair market value of the real property or the fee interest.

(4)   'Beneficial use' means the right to possession, use, and enjoyment of property, limited only by encumbrances, easements, and restrictions of record.

(5)   'Commonly controlled' means persons having relationships as described in Section 267(b) of the Internal Revenue Code as defined in Section 12-6-40(A).

(6)   'Conveyance' means the date the instrument of record of an assessable transfer of interest in real property is recorded by the Clerk of Court or Register of Deeds in the county where the real property is located.

(7)   'Property tax assessment' means a valuation or determination of property value for annual property tax purposes arrived at by multiplying the fair market value or special use value of property by the appropriate assessment ratio for the taxable property's classification.


Printed Page 695 . . . . . Tuesday, February 14, 2006

(8)   'Property tax assessor' means the county assessor, an assessor appointed to handle multiple county assessments pursuant to an intergovernmental agreement, or the Department of Revenue, as applicable.

Section 12-37-3320.   The value of real property for purposes of the imposition of the property tax is subject to the provisions of this subarticle. The provisions of this subarticle are in addition to and not in lieu of other provisions of law applicable to the valuation of real property for purposes of the property tax.

Section 12-37-3330.   (A)(1)   Beginning with the year in which this subarticle takes effect, for purposes of the property tax the fair market value of real property is its fair market value determined at the later of:

(a)   the fair market value of the property applicable for the base year, as defined in subsection (B) of this section;

(b)   the fair market value of the property as determined when an assessable transfer of interest has occurred;

(c)   the fair market value of the property as determined on appeal.

(2)   To the fair market value of real property as determined at the time provided in item (1) of this subsection, there must be added the fair market value of subsequent improvements and additions to the property.

(B)   For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its appraised value applicable for property tax year 2007.

Section 12-37-3340.   (A)   For purposes of determining when a parcel of real property must be appraised, an assessable transfer of interest in real property includes, but is not limited to, the following:

(1)   a conveyance by deed;

(2)   a conveyance by land contract;

(3)   a conveyance to a trust, except if the settlor or the settlor's spouse, or both, conveys the property to the trust and the sole present beneficiary or beneficiaries are the settlor or the settlor's spouse, or both;

(4)   a conveyance by distribution from a trust, except if the distributee is the sole present beneficiary or the spouse of the sole present beneficiary, or both;

(5)   a change in the sole present beneficiary or beneficiaries of a trust, except a change that adds or substitutes the spouse of the sole present beneficiary;


Printed Page 696 . . . . . Tuesday, February 14, 2006

(6)   a conveyance by distribution under a will or by intestate succession, except if the distributee is the decedent's spouse;

(7)   a conveyance by lease if the total duration of the lease, including the initial term and all options for renewal, is more than twenty years or the lease grants the lessee a bargain purchase option. As used in this item, 'bargain purchase option' means the right to purchase the property at the termination of the lease for not more than eighty percent of the property's true cash value at the termination of the lease. This item does not apply to personal property or that portion of the property not subject to the leasehold interest conveyed;

(8)   a conveyance in a single transaction or as a part of a series of related transactions within twenty-five years of fifty percent or more of the shares or ownership interest in a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity if the ownership interest conveyed is fifty percent or more of the applicable fair market value of the real property. The corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity shall notify the applicable property tax assessor on a form provided by the Department of Revenue not more than forty-five days after a conveyance of an ownership interest that constitutes a transfer of ownership under this item;

(9)   a change of use of agricultural real property which subjects it to the rollback tax; or

(10)   a change of use of real property when classification of property changes as a result of a local zoning ordinance change.

(B)   An assessable transfer of interest does not include:

(1)   transfers not subject to federal income tax in the following circumstances:

(a)   102, limited to transfer to a spouse or surviving spouse, (Gifts and Inheritances);

(b)   1033 (Conversions--Fire and Insurance Proceeds to Rebuild);

(c)   1041 (Transfers of Property Between Spouses or Incident to Divorce);

(d)   351 (Transfer to a Corporation Controlled by Transferor);

(e)   355 (Distribution by a Controlled Corporation);

(f)   368 (Corporate Reorganizations); or

(g)   721 (Nonrecognition of Gain or Loss on a Contribution to a Partnership).


Printed Page 697 . . . . . Tuesday, February 14, 2006

Number references in the above subitems are to sections of the Internal Revenue Code of 1986, as defined in Section 12-6-40;

(2)   transfers in the case of real property classified pursuant to Section 12-43-220(c) where:

(a)   the transferor retains a life estate in the real property and the transferor continues to occupy the real property as his legal residence; or

(b)   real property is transferred to a trust where the transferor and settlor is a life beneficiary of the trust and continues to occupy the real property as his legal residence;

(3)   a transfer of that portion of property subject to a life estate or life lease retained by the transferor, until expiration or termination of the life estate or life lease;

(4)   a transfer through foreclosure or forfeiture of a recorded instrument or through deed or conveyance in lieu of a foreclosure or forfeiture, until the redemption period has expired;

(5)   a transfer by redemption by the person to whom taxes are assessed of property previously sold for delinquent taxes;

(6)   a conveyance to a trust if the settlor or the settlor's spouse, or both, convey the property to the trust and the sole present beneficiary of the trust is the settlor or the settlor's spouse, or both;

(7)   a transfer for security or an assignment or discharge of a security interest;

(8)   a transfer of real property or other ownership interests among members of an affiliated group. As used in this item, 'affiliated group' is as defined in Section 1504 of the Internal Revenue Code as defined in Section 12-6-40. Upon request of the applicable property tax assessor, a corporation shall furnish proof within forty-five days that a transfer meets the requirements of this item. A corporation that fails to comply with such a request is subject to a civil penalty as provided in Section 12-37-3350; or

(9)   a transfer of real property or other ownership interests among corporations, partnerships, limited liability companies, limited liability partnerships, or other legal entities if the entities involved are commonly controlled. Upon request by the applicable property tax assessor, a corporation, partnership, limited liability company, limited liability partnership, or other legal entity shall furnish proof within forty-five days that a transfer meets the requirements of this item. A corporation, partnership, limited liability company, limited liability partnership, or other legal entity that fails to comply with such a request is subject to a civil penalty as provided in Section 12-37-3350.


Printed Page 698 . . . . . Tuesday, February 14, 2006

Section 12-37-3350.   (A)   The Department of Revenue is authorized to adopt regulations to implement this subarticle, including, without limitation, providing for those circumstances that constitute a change in the beneficial ownership of real property or an assessable transfer of interest not evidenced by transfer of fee simple title. The department shall examine the substance, rather than merely the form of the transfer, and related and surrounding transactions, and may use the step transaction, economic reality, quid pro quo, personal benefit, and other judicially developed doctrines in determining whether the requisite assessable transfer of interest has occurred.

(B)   Each real property tax notice must contain a certificate prescribed by the Department of Revenue signed and returned by the property owner or the owner's agent certifying details of the ownership of the property. If the owner or owner's agent knowingly falsifies any detail on the certificate, then the owner or owner's agent is subject to a civil penalty imposed by the Department of Revenue, the county assessor, or an assessor appointed to handle multiple county assessments pursuant to an intergovernmental agreement, as applicable. The amount shall be not less than twice the taxes lawfully due on the property or more than three times the taxes lawfully due on the property. This civil penalty is enforceable and collectable in the same manner as property tax." /

Amend further, beginning on page [1028-10], by striking SECTION 2 in its entirety and inserting:

/ SECTION   2.   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:

"All property presently subject to ad valorem taxation shall be classified and assessed as follows: As used in this section, fair market value with reference to real property means fair market value determined in the manner provided pursuant to Article X of the Constitution of this State, Section 12-37-930, and as that value may be limited pursuant to Article 25, Chapter 37 of this title."

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.


Printed Page 699 . . . . . Tuesday, February 14, 2006

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

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

E.   Section 6-1-50 of the 1976 Code is amended to read:

"Section 6-1-50.   Counties and municipalities receiving revenues from state aid, currently known as Aid to Subdivisions, shall submit annually to the Comptroller General Budget and Control Board, Office of Research and Statistics, Economic Research Section, a financial report detailing their sources of revenue, expenditures by category, indebtedness, and other information as the Comptroller General Budget and Control Board, Office of Research and Statistics, Economic Research Section, requires. The federal revenue sharing document may be substituted for the financial report as long as it is required by the Federal Office of Revenue Sharing. The Comptroller General, in conjunction with the The Budget and Control Board, Division Office of Research and Statistical Services Statistics, Economic Research Section, shall determine the required contents content and format of the annual financial report. and the date of submission. Failure to submit the report shall result in the withholding of ten percent of the current year's state aid The financial report for the most recently completed fiscal year must be submitted to the Budget and Control Board, Office of Research and Statistics, Economic Research Section, by November fifteenth of each year. If an entity fails to file the financial report by November fifteenth, then the chief administrative officer of the entity shall be notified in writing that the entity has thirty days to comply with the requirements of this section. The Director of the Office of Research and Statistics may, for good cause, grant a local entity an extension of time to file the annual financial report. Notification by the Director of the Office of Research and Statistics to the Comptroller General that an entity has failed to file the annual financial report thirty days after written notification to the chief administrative officer of the entity must result in the withholding of ten percent of subsequent payments of state aid to the entity until the report is filed. The Budget and Control Board, Division of Research and Statistical Services Statistics, Economic Research Section, is responsible for collecting, maintaining, and compiling the existing financial data bases as exists with the Federal Office of Revenue Sharing. In conjunction with the Comptroller General, Advisory Commission on Intergovernmental


Printed Page 700 . . . . . Tuesday, February 14, 2006

Relations, and the University of South Carolina Bureau of Governmental Research and Service, the Division of Research and Statistical Services of the Budget and Control Board shall produce a comprehensive report of this data and submit it to the General Assembly no later than June first of each year provided by counties and municipalities in the annual financial report required by this section."

F.   Section 12-60-2510 of the 1976 Code is amended to read:

"Section 12-60-2510.   (A)(1)   In the case of property tax assessments made by the county assessor, whenever the assessor increases the fair market value or special use value in making a property tax assessment by one thousand dollars or more, or whenever the first property tax assessment is made on the property by a county assessor, the assessor, by July first in the year in which the property tax assessment is made, or as soon after as is practical, shall send the taxpayer a property tax assessment notice. In years when real property is appraised and assessed under a countywide equalization program, substantially all property tax assessment notices must be mailed by October first of the implementation year. In these reassessment years, if substantially all of the tax assessment notices are not mailed by October first, the prior year's property tax assessment must be the basis for all property tax assessments for the current tax year. A property tax assessment notice under this subsection must be in writing and must include:

(a)   the fair market value;

(b)   value as limited by Section 12-37-223A subarticle 3, Chapter 37, Title 12, if applicable;

(c)   the special use value, if applicable;

(d)   the assessment ratio;

(e)   the property tax assessment;

(f)   the number of acres or lots;

(g)   the location of the property;

(h)   the tax map number; and

(i)     the appeal procedure.

(2)   The notice must be served upon the taxpayer personally or by mailing it to the taxpayer at his last known place of residence which may be determined from the most recent listing in the applicable telephone directory, the Department of Motor Vehicles' motor vehicle registration list, county treasurer's records, or official notice from the property taxpayer.

(3)   In years when there is a notice of property tax assessment, the property taxpayer, within ninety days after the assessor mails the property tax assessment notice, must give the assessor written notice of


Printed Page 701 . . . . . Tuesday, February 14, 2006

objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment.

(4)   In years when there is no notice of property tax assessment, the property taxpayer must, by March first within ninety days after the tax notice is mailed to the taxpayer, give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment. The failure to serve written notice of objection by March first within ninety days after the tax notice is mailed to the taxpayer is a waiver of the taxpayer's right of protest for that tax year, and the assessor may not review any request filed after March first the ninetieth day that the tax notice was mailed to the taxpayer.

(B)   The department shall prescribe a standard property tax assessment notice designed to contain the information required in subsection (A) in a manner that may be easily understood." /

Amend further, page [1028-13], by striking SECTIONS 3 and 4 and inserting:

/ SECTION   3.   Section 12-37-220(B) of the 1976 Code, as amended by Act 161 of 2005, is further amended by adding a new item at the end appropriately numbered to read:

"( )   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."

SECTION   4.   If any article, subarticle, section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of the chapter, the General Assembly hereby declaring that it would have passed each and every article, subarticle, section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other articles, subarticles, sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   5.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect


Printed Page 702 . . . . . Tuesday, February 14, 2006

pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION   6.   This act takes effect upon ratification of Article X of the Constitution of this State allowing its terms as proposed to the qualified electors of this State at the 2006 general election. However, the provisions of Section 2D of this act take effect upon approval of this act by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

Senator McCONNELL argued contra to the adoption of the amendment.

Senator McCONNELL moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. P-2

Senator THOMAS proposed the following Amendment No. P-2 (BBM\9250HTC06), which was tabled:

Amend the committee report, as and if amended, in Section 12-37-3310, as contained in SECTION 1, page 1028-3, by striking beginning on line 33 /Except as provided in Subarticle 5 of this article, the / and inserting / The /

Amend the report further, as and if amended, beginning on page 1028-9, by striking Subarticle 5 in its entirety.

Amend further, as and if amended, page 1028-10, in SECTION 2, by striking subsection C.

Renumber sections to conform.

Amend title to conform.


Printed Page 703 . . . . . Tuesday, February 14, 2006

Senator RITCHIE explained the amendment.

Senator MARTIN moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. P-4

Senator CAMPSEN proposed the following Amendment No. P-4 (BBM\9252HTC06), which was withdrawn:

Amend the committee report, as and if amended, in SECTION 1, page 1028-4, by inserting immediately before Section 12-37-3330:

/ Section 12-37-3325.   The limits imposed pursuant to Section 12-37-3320(B) on increases in fair market value attributable to a countywide appraisal and equalization program conducted pursuant to Section 12-43-217 do not apply with respect to real property owned by a publicly-traded corporation. /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

On motion of Senator CAMPSEN, with unanimous consent, the amendment was withdrawn.

Amendment No. P-3

Senator CAMPSEN proposed the following Amendment No. P-3 (JUD1028.006), which was adopted:

Amend the committee report, as and if amended, by striking lines 23-35 on page [1028-6] and inserting the following:

/   (8)   a transfer of an ownership interest in a single transaction or as a part of a series of related transactions within a twenty-five year period in a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity if the ownership interest conveyed is more than fifty percent of the corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity. The corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity shall notify the applicable property tax assessor on a form provided by the Department of


Printed Page 704 . . . . . Tuesday, February 14, 2006

Revenue not more than forty-five days after a conveyance of an ownership interest that constitutes an assessable transfer of interest or transfer of ownership under this item;   /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

On motion of Senator MARTIN, with unanimous consent, the amendment was adopted.

Amendment No. P-5

Senator RYBERG proposed the following Amendment P-5 (1028R001.WGR), which was withdrawn:

Amend the committee amendment, as and if amended, page [1028-9], by striking lines 39-43 and page [1028-10] by striking lines 1-3, inserting:

/   for a five-year period. In property tax year 2013, the application or nonapplication of subarticle 3 of this article may be changed only by an ordinance as provided in Section 4-9-1210 to be effective in property tax year 2014. After 2014, the method of assessment effective in each county as of 2014 remains effective for a ten-year period and may not be changed by ordinance, including an ordinance enacted as provided in Section 4-9-1210, except every ten years."     /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

Senator MARTIN spoke on the amendment.

On motion of Senator MARTIN, with unanimous consent, Amendment No. P-5 was withdrawn.

Amendment No. P-7

Senators RYBERG, MARTIN and KNOTTS proposed the following Amendment No. P-7 (1028R002.LAM), which was adopted:

Amend the committee report, as and if amended, by striking Section 12-37-3520 as contained in SECTION 1, page [1028-9], and inserting:

/ Section 12-37-3520.   The method of assessment selected by a majority vote of the qualified electors of the county voting in the referendum is effective as of January 1, 2008. The method of


Printed Page 705 . . . . . Tuesday, February 14, 2006

assessment effective as of property tax year 2008 remains in effect for a five-year period. In property tax year 2013, the application or nonapplication of Subarticle 3 of this article may be changed by the governing body of the county by ordinance, but only upon a favorable vote of the qualified electors of the county voting in a referendum held for this purpose at the time of a November general election, or by an ordinance as provided in Section 4-9-1210. After 2014, the method of assessment effective in each county as of 2014 remains effective for a ten-year period and must not be changed except after ten years and in the manner provided in this section."

Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the amendment.

The amendment was adopted.

The question then was the adoption of the committee amendment, as amended.

The Committee on Judiciary proposed the following amendment (JUD1028.005), which was adopted, as amended:

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

  /   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


Printed Page 706 . . . . . Tuesday, February 14, 2006

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.

Whereas, as a consequence of the explosive growth in residential and commercial property values in many parts of this State, the assessment process often results in exorbitant increased values being assigned to residences and businesses that have been owned by a single owner or family for a substantial number of years; and

Whereas, these increased values to real property result in increased property taxes and are an unfair burden on the residents of this State in contravention of the philosophy underlying Act 208 of 1975; and

Whereas, the General Assembly has determined that protections from escalating real property taxes must be provided to all classes of property; and

Whereas, this legislation is the statutory implementation for amendments proposed to Articles III and X of the South Carolina Constitution to allow taxable assessments of real property to occur by different methods in different counties. Now, therefore,


Printed Page 707 . . . . . Tuesday, February 14, 2006

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

SECTION   1.   Chapter 37, Title 12 of the 1976 Code is amended by adding:

  "Article 25

South Carolina Property Tax Assessment Reform Act

Subarticle 1

General Provisions

Section 12-37-3110.   This article may be cited as the 'South Carolina Property Tax Assessment Reform Act.'

Section 12-37-3120.   (A)   Nothing in this article affects the provisions of Section 12-43-220(d) that define and apply to 'fair market value for agricultural purposes' for real property in agricultural use.

(B)   Except as provided in Section 12-37-3320, this article does not affect the eligibility requirements for agricultural use or the imposition of rollback taxes when real property is changed from agricultural use.

(C)   Nothing in this article affects the appropriate methods of appraising real property for purposes of the property tax by county assessors, assessors appointed to handle multiple county assessments pursuant to an intergovernmental agreement, and officials of the Department of Revenue, as applicable.

  Subarticle 3

Valuation of Real Property

Section 12-37-3310.   Except as provided in Subarticle 5 of this article, the value of real property for purposes of the imposition of the property tax is subject to the provisions of this subarticle. The provisions of this subarticle are in addition to and not in lieu of other provisions of law applicable to the valuation of real property for purposes of the property tax.

Section 12-37-3320.   (A)(1)   Beginning with the year in which this subarticle takes effect, for purposes of the property tax the fair market value of real property is its fair market value determined at the later of:

(a)   the fair market value of the property applicable for the base year, as defined in subsection (C) of this section;

(b)   the fair market value of the property as determined when an assessable transfer of interest has occurred;

(c)   the fair market value of the property as determined in a countywide reassessment program conducted pursuant to Section 12-43-217, as amended herein, but limited to increases in such value as provided in subsection (B) of this section;


Printed Page 708 . . . . . Tuesday, February 14, 2006

(d)   the fair market value of the property as determined on appeal.

(2)   To the fair market value of real property as determined at the time provided in item (1) of this subsection, there must be added the fair market value of subsequent improvements and additions to the property.

(B)   Any increase in the fair market value of real property attributable to a periodic countywide appraisal and equalization program implemented pursuant to Section 12-43-217 is limited to three percent a year not to exceed fifteen percent within a five-year period. However, this limit does not apply to the fair market value of additions or improvements to real property in the year those additions or improvements are first subject to property tax, nor do they apply to the fair market value of real property when an assessable transfer of interest occurred in the year that the transfer value is first subject to tax.

(C)   For purposes of determining a 'base year' fair market value pursuant to this section, the fair market value of real property is its appraised value applicable for property tax year 2007.

Section 12-37-3330.   As used in this subarticle:

(1)   'Additions' or 'improvements' mean an increase in the value of an existing parcel of real property because of:

(a)   new construction;

(b)   reconstruction;

(c)   major additions to the boundaries of the property or a structure on the property;

(d)   remodeling; or

(e)   renovation and rehabilitation, including installation.

Additions or improvements do not include minor construction or ongoing maintenance and repair of existing structures. The repair or reconstruction of a structure damaged or destroyed by a disaster, to include but not limited to construction defects, defective materials, fire, wind, hail, flood, and acts of God, is not an addition or improvement to the extent that the structure as repaired or reconstructed is similar in size, utility, and function of the structure damaged or destroyed, and the rebuilding or reconstruction is begun within eight years after determination of the damage or destruction. Construction of facilities in a home that make the home handicapped accessible is not an addition or improvement if the utility and function of the structure remains unchanged.

(2)   'Adjustments mean the increase to fair market value of additions or improvements made to real property after the


Printed Page 709 . . . . . Tuesday, February 14, 2006

determination of fair market value as determined pursuant to Section 12-37-3320.

(3)   'Appraisal' or 'appraised' means the process provided by law for the property tax assessor to determine the fair market value of real property and additions and improvements to real property.

(4)   'Assessable transfer of interest' means a transfer of an existing interest in real property that subjects the real property to appraisal. For purposes of this definition, an existing interest in real property includes life estate interests and the beneficial use of the property when the fair market value of that beneficial use is substantially equal to the fair market value of the real property or the fee interest.

(5)   'Beneficial use' means the right to possession, use, and enjoyment of property, limited only by encumbrances, easements, and restrictions of record.

(6)   'Commonly controlled' means persons having relationships as described in Section 267(b) of the Internal Revenue Code as defined in Section 12-6-40(A).

(7)   'Conveyance' means the date the instrument of record of an assessable transfer of interest in real property is recorded by the Clerk of Court or Register of Deeds in the county where the real property is located.

(8)   'Property tax assessment' means a valuation or determination of property value for annual property tax purposes arrived at by multiplying the fair market value or special use value of property by the appropriate assessment ratio for the taxable property's classification.

(9)   'Property tax assessor' means the county assessor, an assessor appointed to handle multiple county assessments pursuant to an intergovernmental agreement, or the Department of Revenue, as applicable.

Section 12-37-3340.   (A)   For purposes of determining when a parcel of real property must be appraised, an assessable transfer of interest in real property includes, but is not limited to, the following:

(1)   a conveyance by deed;

(2)   a conveyance by land contract;

(3)   a conveyance to a trust, except if the settlor or the settlor's spouse, or both, conveys the property to the trust and the sole present beneficiary or beneficiaries are the settlor or the settlor's spouse, or both;

(4)   a conveyance by distribution from a trust, except if the distributee is the sole present beneficiary or the spouse of the sole present beneficiary, or both;


Printed Page 710 . . . . . Tuesday, February 14, 2006

(5)   a change in the sole present beneficiary or beneficiaries of a trust, except a change that adds or substitutes the spouse of the sole present beneficiary;

(6)   a conveyance by distribution under a will or by intestate succession, except if the distributee is the decedent's spouse;

(7)   a conveyance by lease if the total duration of the lease, including the initial term and all options for renewal, is more than twenty years or the lease grants the lessee a bargain purchase option. As used in this item, 'bargain purchase option' means the right to purchase the property at the termination of the lease for not more than eighty percent of the property's true cash value at the termination of the lease. This item does not apply to personal property or that portion of the property not subject to the leasehold interest conveyed;

(8)   a conveyance in a single transaction or as a part of a series of related transactions within twenty-five years of fifty percent or more of the shares or ownership interest in a corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity if the ownership interest conveyed is fifty percent or more of the applicable fair market value of the real property. The corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other legal entity shall notify the applicable property tax assessor on a form provided by the Department of Revenue not more than forty-five days after a conveyance of an ownership interest that constitutes a transfer of ownership under this item;

(9)   a change of use of agricultural real property which subjects it to the rollback tax; or

(10)   a change of use of real property when classification of property changes as a result of a local zoning ordinance change.

(B)   An assessable transfer of interest does not include:

(1)   transfers not subject to federal income tax in the following circumstances:

(a)   102, limited to transfer to a spouse or surviving spouse, (Gifts and Inheritances);

(b)   1033 (Conversions--Fire and Insurance Proceeds to Rebuild);

(c)   1041 (Transfers of Property Between Spouses or Incident to Divorce);

(d)   351 (Transfer to a Corporation Controlled by Transferor);

(e)   355 (Distribution by a Controlled Corporation);

(f)   368 (Corporate Reorganizations); or


Printed Page 711 . . . . . Tuesday, February 14, 2006

(g)   721 (Nonrecognition of Gain or Loss on a Contribution to a Partnership).

Number references in the above subitems are to sections of the Internal Revenue Code of 1986, as defined in Section 12-6-40;

(2)   transfers in the case of real property classified pursuant to Section 12-43-220(c) where:

(a)   the transferor retains a life estate in the real property and the transferor continues to occupy the real property as his legal residence; or

(b)   real property is transferred to a trust where the transferor and settler is a life beneficiary of the trust and continues to occupy the real property as his legal residence;

(3)   a transfer of that portion of property subject to a life estate or life lease retained by the transferor, until expiration or termination of the life estate or life lease;

(4)   a transfer through foreclosure or forfeiture of a recorded instrument or through deed or conveyance in lieu of a foreclosure or forfeiture, until the redemption period has expired;

(5)   a transfer by redemption by the person to whom taxes are assessed of property previously sold for delinquent taxes;

(6)   a conveyance to a trust if the settlor or the settlor's spouse, or both, convey the property to the trust and the sole present beneficiary of the trust is the settlor or the settlor's spouse, or both;

(7)   a transfer for security or an assignment or discharge of a security interest;

(8)   a transfer of real property or other ownership interests among members of an affiliated group. As used in this item, 'affiliated group' is as defined in Section 1504 of the Internal Revenue Code as defined in Section 12-6-40. Upon request of the applicable property tax assessor, a corporation shall furnish proof within forty-five days that a transfer meets the requirements of this item. A corporation that fails to comply with such a request is subject to a civil penalty as provided in Section 12-37-3350; or

(9)   a transfer of real property or other ownership interests among corporations, partnerships, limited liability companies, limited liability partnerships, or other legal entities if the entities involved are commonly controlled. Upon request by the applicable property tax assessor, a corporation, partnership, limited liability company, limited liability partnership, or other legal entity shall furnish proof within forty-five days that a transfer meets the requirements of this item. A corporation, partnership, limited liability company, limited liability


Printed Page 712 . . . . . Tuesday, February 14, 2006

partnership, or other legal entity that fails to comply with such a request is subject to a civil penalty as provided in Section 12-37-3350.

Section 12-37-3350.   (A)   The Department of Revenue is authorized to adopt regulations to implement this act, including, without limitation, providing for those circumstances that constitute a change in the beneficial ownership of real property or an assessable transfer of interest not evidenced by transfer of fee simple title. The department shall examine the substance, rather than merely the form of the transfer, and related and surrounding transactions, and may use the step transaction, economic reality, quid pro quo, personal benefit, and other judicially developed doctrines in determining whether the requisite assessable transfer of interest has occurred.

(B)   Each real property tax notice must contain a certificate prescribed by the Department of Revenue signed and returned by the property owner or the owner's agent certifying details of the ownership of the property. If the owner or owner's agent knowingly falsifies any detail on the certificate, then the owner or owner's agent is subject to a civil penalty imposed by the Department of Revenue, the county assessor, or an assessor appointed to handle multiple county assessments pursuant to an intergovernmental agreement, as applicable. The amount shall be not less than twice the taxes lawfully due on the property or more than three times the taxes lawfully due on the property. This civil penalty is enforceable and collectable in the same manner as property tax.

Section 12-37-3360.   Notwithstanding any other provision of law, for purposes of calculating the limit on bonded indebtedness provided pursuant to Article X, Sections 14 and 15 of the State Constitution, the assessed values of all taxable property for jurisdictions using valuation methods for real property pursuant to this subarticle shall be the greater of (1) the final assessed value effective for property tax year 2007, or (2) the assessed value of all taxable property as calculated subsequent to the date of the enactment of these provisions.

  Subarticle 5

Alternate Method for Valuation of Real Property

Section 12-37-3510.   (A)   In each county of this State on November 6, 2007, a referendum must be conducted to determine whether the provisions of Subarticle 3 of this article apply or do not apply for purposes of assessing real property in that county. The ballot referendum must read as follows:

'Select one of the alternatives below as a method of valuing a parcel of real property for purposes of calculating the property tax:


Printed Page 713 . . . . . Tuesday, February 14, 2006

[]   I choose appraisal and assessment of real property at its fair market value, with reassessments occurring every five years.

[]   I choose appraisal and assessment of real property with a limit on the increase in taxable value not to exceed three percent a year or fifteen percent over a five-year period except when the property is improved or when an assessable transfer of interest has occurred.'

The election laws of this State apply to this referendum mutatis mutandis. The State Election Commission must reimburse the expenses incurred by the counties in conducting this referendum from funds appropriated to the commission for this purpose.

The county election commission shall certify to the governing body of the county, the county assessor, and the South Carolina Department of Revenue the method of appraising and assessing real property that has been selected by the majority of the qualified electors of the county voting in the referendum.

In the event that the referendum or the results of the referendum are challenged, then the provisions of Subarticle 3 of this article apply in the county where the challenge occurs and are effective for property tax year 2008 and remain in effect until the challenge is resolved.

Section 12-37-3520.   The method of assessment selected by a majority vote of the qualified electors of the county voting in the referendum is effective as of January 1, 2008. The method of assessment effective as of property tax year 2008 remains in effect for a five-year period. In property tax year 2013, the application or nonapplication of Subarticle 3 of this article may be changed by ordinance, including an ordinance enacted as provided in Section 4-9-1210 to be effective in property tax year 2014. After 2014, the method of assessment effective in each county as of 2014 remains effective for a ten-year period and may not be changed by ordinance, including an ordinance enacted as provided in Section 4-9-1210, except every ten years."

SECTION   2.   A.   Section 12-43-220 of the 1976 Code, as last amended by Act 145 of 2005, is further amended by amending the first paragraph to read:

"Except as otherwise provided, the ratio of assessment to value of property in each class shall be equal and uniform throughout the State."

B.     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:

"All property presently subject to ad valorem taxation shall be classified and assessed as follows: As used in this section, fair market


Printed Page 714 . . . . . Tuesday, February 14, 2006

value with reference to real property means fair market value determined in the manner provided pursuant to Article X of the Constitution of this State, Section 12-37-930, and as that value may be limited pursuant to Article 25, Chapter 37 of this title."

C.     Section 4-9-1210 of the 1976 Code is amended to read:

"Section 4-9-1210.   The qualified electors of any county may propose any ordinance, except an ordinance appropriating money or authorizing the levy of taxes, and adopt or reject such ordinance at the polls. Any initiated ordinance may be submitted to the council by a petition signed by qualified electors of the county equal in number to at least fifteen percent of the qualified electors of the county. The enactment or repeal of ordinances allowed pursuant to Subarticle 5, Article 25, Chapter 37 of Title 12 may be the subject of an ordinance proposed by initiative pursuant to this section."

D.   Section 6-1-50 of the 1976 Code is amended to read:

"Section 6-1-50.   Counties and municipalities receiving revenues from state aid, currently known as Aid to Subdivisions, shall submit annually to the Comptroller General Budget and Control Board, Office of Research and Statistics, Economic Research Section, a financial report detailing their sources of revenue, expenditures by category, indebtedness, and other information as the Comptroller General Budget and Control Board, Office of Research and Statistics, Economic Research Section, requires. The federal revenue sharing document may be substituted for the financial report as long as it is required by the Federal Office of Revenue Sharing. The Comptroller General, in conjunction with the The Budget and Control Board, Division Office of Research and Statistical Services Statistics, Economic Research Section, shall determine the required contents content and format of the annual financial report. and the date of submission. Failure to submit the report shall result in the withholding of ten percent of the current year's state aid The financial report for the most recently completed fiscal year must be submitted to the Budget and Control Board, Office of Research and Statistics, Economic Research Section, by November fifteenth of each year. If an entity fails to file the financial report by November fifteenth, then the chief administrative officer of the entity shall be notified in writing that the entity has thirty days to comply with the requirements of this section. The Director of the Office of Research and Statistics may, for good cause, grant a local entity an extension of time to file the annual financial report. Notification by the Director of the Office of Research and Statistics to the Comptroller General that an entity has failed to file the annual financial report thirty days after


Printed Page 715 . . . . . Tuesday, February 14, 2006

written notification to the chief administrative officer of the entity must result in the withholding of ten percent of subsequent payments of state aid to the entity until the report is filed. The Budget and Control Board, Division of Research and Statistical Services Statistics, Economic Research Section, is responsible for collecting, maintaining, and compiling the existing financial data bases as exists with the Federal Office of Revenue Sharing. In conjunction with the Comptroller General, Advisory Commission on Intergovernmental Relations, and the University of South Carolina Bureau of Governmental Research and Service, the Division of Research and Statistical Services of the Budget and Control Board shall produce a comprehensive report of this data and submit it to the General Assembly no later than June first of each year provided by counties and municipalities in the annual financial report required by this section."

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

F.     Section 12-43-210 of the 1976 Code is amended to read:

"Section 12-43-210.   (A)   All property must be assessed uniformly within its jurisdiction and equitably throughout the State. The South Carolina Department of Revenue may promulgate regulations to ensure equalization that 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."

G.     Section 12-43-217 of the 1976 Code is amended to read:

"Section 12-43-217.   (A)   Notwithstanding any other provision of law, unless appraising real property pursuant to subsection (D) of this section, once every fifth year each county or the State shall appraise and equalize those properties under its jurisdiction. Property valuation must be complete at the end of December of the fourth year and the county or State shall notify every each taxpayer of any change in value or classification if the change is one thousand dollars or more. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values.

(B)   A county by ordinance may postpone for not more than one property tax year the implementation of revised values resulting from the equalization program provided pursuant to subsection (A) of this section. The postponement ordinance applies to all revised values, including values for state-appraised property. The postponement allowed pursuant to this subsection does not affect the schedule of the


Printed Page 716 . . . . . Tuesday, February 14, 2006

appraisal and equalization program required pursuant to subsection (A) of this section.

(C)   Postponement of the implementation of revised values pursuant to subsection (B) of this section shall also postpone any requirement for submission of a reassessment program for approval by the Department of Revenue.

(D)   A county may appraise one-fifth of the real property in its jurisdiction so long as the entire county is reappraised by the end of the fifth year. Property valuation for that portion of the county must be completed at the end of December of each year, and the county shall notify each taxpayer of any change in value or classification if the change is one thousand dollars or more."

H.     Section 12-60-2510 of the 1976 Code is amended to read:

"Section 12-60-2510.   (A)(1)   In the case of property tax assessments made by the county assessor, whenever the assessor increases the fair market value or special use value in making a property tax assessment by one thousand dollars or more, or whenever the first property tax assessment is made on the property by a county assessor, the assessor, by July first in the year in which the property tax assessment is made, or as soon after as is practical, shall send the taxpayer a property tax assessment notice. In years when real property is appraised and assessed under a countywide equalization program, substantially all property tax assessment notices must be mailed by October first of the implementation year. In these reassessment years, if substantially all of the tax assessment notices are not mailed by October first, the prior year's property tax assessment must be the basis for all property tax assessments for the current tax year. A property tax assessment notice under this subsection must be in writing and must include:

(a)   the fair market value;

(b)   value as limited by Section 12-37-223A Subarticle 3, Chapter 37, Title 12, if applicable;

(c)   the special use value, if applicable;

(d)   the assessment ratio;

(e)   the property tax assessment;

(f)   the number of acres or lots;

(g)   the location of the property;

(h)   the tax map number; and

(i)     the appeal procedure.

(2)   The notice must be served upon the taxpayer personally or by mailing it to the taxpayer at his last known place of residence which may be determined from the most recent listing in the applicable


Printed Page 717 . . . . . Tuesday, February 14, 2006

telephone directory, the Department of Motor Vehicles' motor vehicle registration list, county treasurer's records, or official notice from the property taxpayer.

(3)   In years when there is a notice of property tax assessment, the property taxpayer, within ninety days after the assessor mails the property tax assessment notice, must give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment.

(4)   In years when there is no notice of property tax assessment, the property taxpayer must, by March first within ninety days after the tax notice is mailed to the taxpayer, give the assessor written notice of objection to one or more of the following: the fair market value, the special use value, the assessment ratio, and the property tax assessment. The failure to serve written notice of objection by March first within ninety days after the tax notice is mailed to the taxpayer is a waiver of the taxpayer's right of protest for that tax year, and the assessor may not review any request filed after March first the ninetieth day that the tax notice was mailed to the taxpayer.

(B)   The department shall prescribe a standard property tax assessment notice designed to contain the information required in subsection (A) in a manner that may be easily understood."

SECTION   3.   If any article, subarticle, section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of the chapter, the General Assembly hereby declaring that it would have passed each and every article, subarticle, section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other articles, subarticles, sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   4.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of


Printed Page 718 . . . . . Tuesday, February 14, 2006

sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION   5.   This act takes effect upon ratification of amendments to Articles III and X of the Constitution of this State allowing its terms as proposed to the qualified electors of this State at the 2006 general election. However, the provisions of Section 2E of this act take effect upon approval of this act by the Governor.     /

Renumber sections to conform.

The question then was the second reading of the Bill.

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

Ayes 43; Nays 0

AYES

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

Total--43

NAYS

Total--0


Printed Page 719 . . . . . Tuesday, February 14, 2006

*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 Bill was read the second time, passed and ordered to a third reading.

The Bill was returned to the status of Special Order.

MOTION ADOPTED

On motion of Senator KNOTTS, with unanimous consent, the Senate stood adjourned out of respect to the memory of Capt. John Earl Dennis of Columbia, S.C., a loyal Clemson fan who had served with the Columbia Police Department and also Defender Services.

ADJOURNMENT

At 2:24 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M.

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