South Carolina General Assembly
111th Session, 1995-1996
Journal of the Senate

WEDNESDAY, FEBRUARY 28, 1996

Wednesday, February 28, 1996
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned and was called to order by the PRESIDENT Pro Tempore.

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

Beloved, in the Gospel of St. John we read: (14:15-16)(NRSV):

"If you love me, you will keep my command-

ments. And I will ask the Father, and he

will give you another Advocate (Helper), to

be with you forever. This is the Spirit

of truth... "
Let us pray.

Our Father, we thank You for the revelation that the Spirit of Truth is the Holy Spirit.

Let Your Spirit be in our minds to guide our thoughts toward the truth.

Let Your Spirit be in our hearts to cleanse them from every evil and unclean desire.

Let Your Spirit be upon our lips, to preserve us from wrong speaking, and to help us by our words to commend that which is true to others... hearing each day the words, "If you love me, you will keep my commandments."

Amen.

Point of Quorum

Senator GIESE made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator GIESE moved that a call of the Senate be made. The following Senators answered the call:

Alexander                 Boan                      Bryan
Cork                      Courson                   Courtney
Drummond                  Elliott                   Fair
Ford                      Giese                     Glover
Gregory                   Hayes                     Holland
Jackson                   Land                      Lander
Leatherman                Leventis                  Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     O'Dell
Passailaigue              Patterson                 Peeler
Rankin                    Richter                   Rose
Russell                   Ryberg                    Saleeby
Setzler                   Short                     Smith, G.
Smith, J.V.               Waldrep                   Washington
Wilson                    

A quorum being present, the Senate resumed.

Presence Recorded

Senator REESE recorded his presence subsequent to the Call of the Senate.

REPORT RECEIVED
OPINION 1996-2

TO:       MEMBERS, THE SENATE OF SOUTH CAROLINA
FROM:   COMMITTEE ON ETHICS
RE:       OPINION 1996-2
DATE:   FEBRUARY 27, 1996

The Senate Committee on Ethics has been asked to render an advisory opinion on the following question:

May a Member of the Senate of South Carolina deliberate, make motions pertaining to, offer amendments pertaining to, and vote on amendments and passage of legislation that affects political sub-divisions of the State of South Carolina in general if the Member's business or professional firm sells goods to or provides professional services to any political subdivisions of this state?

In answering this question, the Committee wishes to quote the following sections of The Ethics, Government Accountability, and Campaign Reform Act of 1991 With Amendments Effective January 12, 1995:

"SECTION 8-13-740.   Representation of another by a public official, member, or employee before a governmental entity.

(A)(1)   A public official occupying statewide office, a member of his immediate family, an individual with whom he is associated, or a business with which he is associated may not knowingly represent another person before a governmental entity, except as otherwise required by law.

(2)   A member of the General Assembly, an individual with whom he is associated, or a business with which he is associated may not knowingly represent another person before a governmental entity, except:

(a)   as required by law;

(b)   before a court under the unified judicial system; or

(c)   [Until July 1, 1995, subparagraph (c) of paragraph (2) of subsection (A) reads as follows:]in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Insurance Commission, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing.

(c)   [From and after July 1, 1995, subparagraph (c) of paragraph (2) of subsection (A) reads as follows:]in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Department of Insurance, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing.

(3)   A public member occupying statewide office, an individual with whom he is associated, or a business with which he is associated may not knowingly represent another person before the same unit or division of the governmental entity for which the public member has official responsibility, except as otherwise required by law.

(4)   A public official, public member, or public employee of a county, an individual with whom the public official, public member, or public employee is associated, or a business with which the public official, public member, or public employee is associated may not knowingly represent a person before any agency, unit, or subunit of that county except:

(a)   as required by law; or

(b)   before a court under the unified judicial system.

(5)   A public official, public member, or public employee of a municipality, an individual with whom the public official, public member, or public employee is associated, or a business with which the public official, public member, or public employee is associated may not knowingly represent a person before any agency, unit, or subunit of that municipality except as required by law.

(6)   A public employee, other than those specified in items (4)and (5) of this subsection, receiving compensation other than reimbursement or per diem payments for his official duties, an individual with whom he is associated, or a business with which he is associated may not knowingly represent a person before an entity on the same level of government except:

(a)   as required by law;

(b)   before a court under the unified judicial system; or

(c)   [Until July 1, 1995, subparagraph (c) of paragraph (6) of subsection (A) reads as follows:]in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Insurance Commission, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing.

(c)   [From and after July 1, 1995, subparagraph (c) of paragraph (6) of subsection (A) reads as follows:] in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Department of Insurance, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing.

(7)   The restrictions set forth in items (1) through (6) of this subsection do not apply to:

(a)   purely ministerial matters which do not require discretion on the part of the governmental entity before which the public official, public member, or public employee is appearing;

(b)   representation by a public official, public member, or public employee in the course of the public official's, public member's, or public employee's official duties;

(c)   representation by the public official, public member, or public employee in matters relating to the public official's, public member's or public employee's personal affairs or the personal affairs of the public official's, public member's, or public employee's immediate family.

(B)   A member of the General Assembly, when he, an individual with whom he is associated, or a business with which he is associated represents a client for compensation as permitted by subsection (A)(2)(c), must file within his annual statement of economic interests a listing of fees earned, services rendered, names of persons represented, and the nature of contacts made with the governmental entities.

(C)   A member of the General Assembly may not vote on the section of that year's general appropriation bill relating to a particular agency or commission if the member, an individual with whom he is associated, or a business with which he is associated has represented any client before that agency or commission as permitted by subsection (A)(2)(c) within one year prior to such vote. This subsection does not prohibit a member from voting on other sections of the general appropriation bill or from voting on the general appropriation bill as a whole.

SECTION 8-13-745. Paid representation of clients and contracting by member of General Assembly or associate in particular situations.

(A)   No member of the General Assembly or an individual with whom he is associated or business with which he is associated may represent a client for a fee in a contested case, as defined in Section 1-23-310, before an agency, a commission, board, department, or other entity if the member of the General Assembly has voted in the election, appointment, recommendation, or confirmation of a member of the governing body of the agency, board, department, or other entity within the twelve preceding months.

(B)   Notwithstanding any other provision of law, after the effective date of this section, no member of the General Assembly or any individual with whom he is associated or business with which he is associated may represent a client for a fee in a contested case, as defined in Section 1-23-310, before an agency, a commission, board, department, or other entity elected, appointed, recommended, or confirmed by the House, the Senate, or the General Assembly if that member has voted on the section of that year's general appropriation bill or supplemental appropriation bill relating to that agency, commission, board, department, or other entity within one year from the date of the vote. This subsection does not prohibit a member from voting on other sections of the general appropriation bill or from voting on the general appropriation bill as a whole.

(C)   Notwithstanding any other provision of law, after the effective date of this section, no member of the General Assembly or an individual with whom he is associated in partnership or a business, company, corporation, or partnership where his interest is greater than five percent may enter into any contract for goods or services with an agency, a commission, board, department, or other entity funded with general funds or other funds if the member has voted on the section of that year's appropriation bill relating to that agency, commission, board, department, or other entity within one year from the date of the vote. This subsection does not prohibit a member from voting on other sections of the appropriation bill or from voting on the general appropriation bill as a whole.

(D)   The provisions of this section do not apply to any court in the unified judicial system.

(E)   When a member of the General Assembly is required by law to appear because of his business interest as an owner or officer of the business or in his official capacity as a member of the General Assembly, this section does not apply.

(F)   The provisions of subsections (A), (B), and (C) do not apply in the case of any vote or action taken by a member of the General Assembly prior to January 1, 1992."

And the following section of the Code dealing with Administrative Procedures:

"SECTION 1-23-310. Definitions.

As used in this article:

(1)   "Agency" means each state board, commission, department or officer, other than the legislature or the courts, but to include the Administrative Law Judge Division, authorized by law to determine contested cases;

(2)   "Contested case" means a proceeding, including but not restricted to ratemaking, price fixing, and licensing, in which the legal rights, duties or privileges of a party are required by law to be determined by an agency after an opportunity for hearing;

(3)   "License" includes the whole or part of any agency permit, franchise, certificate, approval, registration, charter, or similar form of permission required by law, but it does not include a license required solely for revenue purposes;

(4)   "Party" means each person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party;

(5)   "Person" means any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character other than an agency."

To properly answer this question, we must determine if a political sub-division of the State of South Carolina is considered an agency of the state. Clearly, political sub-divisions are legal entities unto themselves created by the citizens of a given geographical area for general and specific governmental and special purpose needs. Black's Law Dictionary, Fifth Edition, defines a "political subdivision" as follows:

"A division of the state made by proper authorities thereof, acting within their constitutional powers, for purpose of carrying out a portion of those functions of state which by long usage and inherent necessities of government have always been regarded as public."

Our own statutes provide that various political sub-divisions of this state are separate entities. Sections 4-1-10, 5-1-10 and 6-1-10 read as follows:

"SECTION 4-1-10.   Division of State into counties; each county is a body politic and corporate.

The State of South Carolina is divided into forty-six counties. Each county is a body politic and corporate for the following purposes:

(1)   To sue and be sued;

(2)   To purchase and hold, for the use of the county, lands and personalty within the limits thereof;

(3)   To make all contracts; and

(4)   To do all acts in relation to the property and concerns of the county necessary thereto.

SECTION 5-1-10.   Certificated municipalities and established township governments declared perpetual bodies politic and corporate.

All municipalities which have a certificate of incorporation issued by the Secretary of State and all township governments which have heretofore been established by act of the General Assembly are hereby declared to be perpetual bodies, politic and corporate and are entitled to exercise all the powers and privileges and are subject to all the limitations and liabilities provided for municipal corporations in this State.The incorporation or corporate capacity of any municipality or township government established heretofore by act of the General Assembly shall not be attacked in any court in this State except as hereinafter provided by statute.

SECTION 6-1-10.   Power of political subdivisions to proceed under legislation dealing with bankruptcy or composition of indebtedness.

The consent of the State is hereby granted to, and all appropriate powers are hereby conferred upon, any county, municipal corporation, township, school district, drainage district or other taxing or governmental unit organized under the laws of the State to institute any appropriate action and in any other respect to proceed under and take advantage of and avail itself of the benefits and privileges conferred, and to accept the burdens and obligations created, by any existing act of the Congress of the United States and any future enactment of the Congress of the United States relating to bankruptcy or the composition of indebtedness on the part of the counties, municipal corporations, townships, school districts, drainage districts and other taxing or governmental units or any of them.

As we can see from the above-quoted sections of law, each and every political sub-division in South Carolina is an entity unto itself. However, each also must comply with certain laws that apply to all political sub-divisions and to certain laws that the General Assembly may from time to time impose on individual political sub-divisions. In most of these cases, special laws provided for by the General Assembly of South Carolina for this state's various political sub-divisions are requested by the political sub-divisions themselves. Suffice it to say that for our Opinion political sub-divisions are, indeed, separate units of government.

With this definition firmly in place by law and court cases too numerous to list here, we shall move on to the question posed for the Committee.

Part of the intent of the General Assembly when debating and passing The Ethics, Government Accountability, and Campaign Reform Act of 1991, with Amendments Effective January 12, 1995 was, indeed, to halt various relationships between government officials and their businesses or professional firms and the political sub-divisions that they were elected or appointed to govern according to the laws of this state. The intent of the General Assembly was not to hinder the authority in voting on issues that effect the people who elect their various representatives unless a specific vote deals with a provision that would, indeed, have a direct impact on a Member's business or professional firm as outlined in Sections 8-13-700 or 8-13-745.

We offer the following examples:

Example One

A Member's business sells items to an agency of The State of South Carolina. Parts of the General Appropriation Bill deal with the funding for the agency to which the Member's business sells. The Member should recuse himself from voting on that section of the General Appropriation Bill and report the same to the President of the Senate through a statement. The Member should request the Clerk of The Senate to cause the statement be printed in The Journal of The Senate of South Carolina for that legislative day.

Example Two

A Member's professional firm represents a political sub-division of this state in various matters. A Bill that is being debated directs all such political sub-divisions in this state to carry out such duties as prescribed in the language of the Bill. The Member would not be responsible for recusing himself from any deliberation or votes on the Bill since it is statewide in scope.

Example Three

A Member's business sells items to a political sub-division of this state. A local Bill is being debated that would give the political sub-division the authority to extend it's bonded indebtedness, enabling the political sub-division to purchase a greater quantity of the items that the Member's business sells. The Member should recuse himself from voting on that local Bill and report the same to the President of the Senate through a statement. The Member should request the Clerk of The Senate to cause the statement to be printed in The Journal of The Senate of South Carolina for that legislative day.

A conflict does not exist when a Bill before the Senate is of a statewide nature and impacts all political sub-divisions in a like manner. Further, a Member would not have to recuse himself from voting on legislation dealing with a specific political sub-division if it does not directly impact on the dealings of a Member's business or professional firm with a political sub-division.

If a Member, or those with whom he is associated, will benefit directly from legislation before the body, he would be considered to have a conflict of interest and should recuse himself from voting on that Bill and report the same to the President of the Senate through a statement. The Member should request the Clerk of The Senate to cause the statement to be printed in The Journal of The Senate of South Carolina for that legislative day. The Committee offers the following sample statement:

"Statement by Senator ____________

I certify that I took no action in the matter of ___________________________ which would preclude my business or professional firm from selling to or representing a particular agency of The State of South Carolina, or a political sub-division of this state."

The ethics laws of our state were not designed to prevent Members from conducting their chosen business or profession. We will not hinder the ability of Members of The Senate of South Carolina to carry out their constitutional duties. The people of the various Senate Districts choose from their population one person to represent them on matters coming before this body. The people's right of representation on all matters should not be abated. The Members have a constitutional right to deliberate, make improvements through amendments, and vote on matters before the Senate. Unless a direct conflict of interest arises, we urge all Members of The Senate of South Carolina to carry out their constitutional duties of office and to not refrain from the full representation of their constituents.

This Opinion, would be considered appropriate for all matters that may come before the Senate, it's Committees, or county delegations.

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

Doctor of the Day

Senator GREG SMITH introduced Dr. Susan Baker of Charleston, S.C., Doctor of the Day.

MOTION ADOPTED

On motion of Senator PEELER, with unanimous consent, the Senate agreed to go into Executive Session prior to adjournment.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1186 -- Senators Leventis, Holland and McGill: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING CHAPTER 108 SO AS TO ESTABLISH THE MID-CAROLINA COMMISSION FOR HIGHER EDUCATION AND PROVIDE FOR THE MEMBERSHIP, FUNCTIONS, DUTIES, AND POWERS OF THE COMMISSION, TO DEVOLVE THE POWERS AND DUTIES OF THE SUMTER COUNTY COMMISSION FOR HIGHER EDUCATION UPON THE COMMISSION; AND TO REPEAL ACT 50 OF 1965 AND ACT 822 OF 1973 RELATING TO THE SUMTER COUNTY COMMISSION FOR HIGHER EDUCATION.

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

S. 1187 -- Senator Passailaigue: A BILL TO AMEND SECTION 13-17-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA RESEARCH AUTHORITY, SO AS TO PROVIDE THAT THE AUTHORITY ALSO MAY BE KNOWN AS "THE SCRA"; AND TO AMEND THE 1976 CODE BY ADDING SECTION 13-17-180 SO AS TO ALLOW THE SOUTH CAROLINA RESEARCH AUTHORITY TO ESTABLISH NOT-FOR-PROFIT CORPORATIONS, AND PROVIDE FOR THE POWERS OF THESE CORPORATIONS.

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

S. 1188 -- Senators Holland, Moore, Elliott, Passailaigue, Setzler, Drummond and Mescher: A JOINT RESOLUTION PROPOSING AMENDMENTS TO ARTICLE III, SECTION 7 OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE QUALIFICATIONS OF SENATORS AND MEMBERS OF THE HOUSE OF REPRESENTATIVES, SO AS TO PROVIDE THAT EFFECTIVE IMMEDIATELY UPON THE RATIFICATION INTO LAW OF THIS PROVISION, NO PERSON WHO IS IN THE LAST YEAR OF A SIXTH CONSECUTIVE TERM AS A MEMBER OF THE HOUSE OF REPRESENTATIVES, OR WHO IS IN THE LAST YEAR OF A THIRD CONSECUTIVE TERM AS A MEMBER OF THE SENATE, OR WHO HAS SERVED TWELVE CONSECUTIVE YEARS IN THE GENERAL ASSEMBLY EITHER AS A MEMBER OF THE SENATE OR HOUSE OF REPRESENTATIVES OR A COMBINATION THEREOF SHALL BE ELIGIBLE FOR A SEAT IN THE GENERAL ASSEMBLY, AND TO PROHIBIT A MEMBER OF THE GENERAL ASSEMBLY FROM BEING REQUIRED TO VACATE HIS SEAT DURING A TERM FOR WHICH HE WAS ELECTED; TO ARTICLE III, SECTION 9 OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO SESSIONS OF THE GENERAL ASSEMBLY, SO AS TO PROVIDE THAT THE SENATE AND THE HOUSE OF REPRESENTATIVES SHALL BY RULE PROVIDE THAT DURING THE TIME PERIOD BEGINNING WITH THE CONVENING OF THE GENERAL ASSEMBLY UNTIL THE SECOND TUESDAY IN FEBRUARY OF EACH YEAR, THE CONSIDERATION OF BILLS SHALL BE LIMITED TO STATEWIDE BILLS WHICH HAVE THE CONSENT OF THE ENTIRE BODY AND NON-STATEWIDE BILLS WHICH HAVE THE CONSENT OF THE AFFECTED DELEGATION; TO REQUIRE THAT THE RULES SHALL PROVIDE THAT UNTIL THE SECOND TUESDAY IN FEBRUARY, EACH BODY SHALL HAVE NOT LESS THAN THREE STATEWIDE SESSION DAYS EACH WEEK, FOR THE PASSAGE OF CONSENT LEGISLATION, UNTIL THE RESPECTIVE HOUSES RESUME THE CONSIDERATION OF ALL LEGISLATION AS PROVIDED IN THE RULES OF THE BODY; AND TO FURTHER PROVIDE THAT NOT MORE THAN THREE WEEKS FOLLOWING THE CERTIFICATION OF THE GENERAL ELECTION OF MEMBERS, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE SENATE SHALL CONVENE THEIR RESPECTIVE BODIES FOR NOT MORE THAN THREE DAYS FOR THE PURPOSE OF THE SELECTION OF COMMITTEES, THE ELECTION OF OFFICERS, AND SUCH OTHER BUSINESS AS MAY BE NECESSARY FOR THE ORGANIZATION OF THE RESPECTIVE HOUSES; TO ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, BY ADDING SECTIONS 15A AND 15B, SO AS TO REQUIRE THE HOUSE AND SENATE TO GIVE CONCURRENT CONSIDERATION TO THE ANNUAL GENERAL APPROPRIATION BILL AND TO PROVIDE THAT AN APPROPRIATION BILL ENACTED UNDER THESE PROVISIONS WILL MEET THE CONSTITUTIONAL REQUIREMENT OF ARTICLE III, SECTION 18, PERTAINING TO THE READING OF BILLS AND JOINT RESOLUTIONS ON THREE SEPARATE DAYS IN EACH HOUSE; TO ARTICLE III, SECTION 20 OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO ELECTIONS BY THE GENERAL ASSEMBLY, SO AS TO PROVIDE THAT FOR ELECTIONS VOTED ON BY THE GENERAL ASSEMBLY IN JOINT SESSION, NO CANDIDATE MAY BE ELECTED UNLESS APPROVED BY A MAJORITY VOTE OF THE SENATE AND A MAJORITY VOTE OF THE HOUSE; AND TO AMEND ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, BY ADDING SECTION 15, SO AS TO PERMIT THE ENACTMENT OF LAWS BY INITIATIVE PETITION.

Senator HOLLAND spoke on the Bill.

Objection

Senator PASSAILAIGUE asked unanimous consent to make a motion that the Bill be placed on the Calendar without reference and then be committed to the Committee on Judiciary, retaining its place on the Calendar.

Senator McCONNELL objected.

Senator WILSON spoke on the Bill.

Senator DRUMMOND spoke on the Bill.

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

S. 1189 -- Senator Thomas: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-1-15 SO AS TO PROVIDE THAT THE SOUTH CAROLINA SUPREME COURT SHALL PROMULGATE RULES ESTABLISHING TIME LIMITS FOR THE COMPLETION OF CERTAIN CRIMINAL PRETRIAL, TRIAL, AND APPELLATE PROCEDURES, INSTANCES FOR WHICH A CONTINUANCE MAY BE GRANTED IN CIRCUIT COURT; AND BY ADDING SECTION 17-1-17 SO AS TO PROVIDE CIVIL PENALTIES TO BE LEVIED UPON OFFICERS OF THE COURT THAT VIOLATE THE PROVISIONS OF SECTION 17-1-15.

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

S. 1190 -- Senator Passailaigue: A JOINT RESOLUTION TO PROVIDE THAT THE REMAINING AMOUNT OF THE LOAN APPROVED BY THE STATE TREASURER AND EXECUTED ON BEHALF OF THE CITY OF CHARLESTON THROUGH THE PATRIOT'S POINT DEVELOPMENT AUTHORITY FROM FUNDS MADE AVAILABLE PURSUANT TO SECTION 51-13-860, EQUAL TO FOUR HUNDRED THOUSAND DOLLARS, MUST BE LOANED FOR A PERIOD NOT TO EXCEED THREE YEARS AT AN INTEREST RATE TO BE DETERMINED BY THE STATE TREASURER.

Senator PASSAILAIGUE spoke on the Joint Resolution.

Read the first time and ordered placed on the Calendar without reference.

S. 1191 -- Senator Moore: A SENATE RESOLUTION TO EXPRESS THE DEEPEST SYMPATHY OF THE MEMBERS OF THE SENATE TO THE FAMILY OF MR. N. F. MANLY, JR., FORMER MAYOR OF NORTH AUGUSTA, UPON HIS DEATH.

The Senate Resolution was adopted.

S. 1192 -- Senators Hayes, Peeler, Gregory and Short: A SENATE RESOLUTION COMMENDING DR. JERRY H. PADGETT, THE RETIRING DEAN OF THE SCHOOL OF BUSINESS ADMINISTRATION AT WINTHROP UNIVERSITY, FOR HIS MANY YEARS OF OUTSTANDING AND DEDICATED SERVICE TO WINTHROP, YORK COUNTY, AND THE STATE OF SOUTH CAROLINA.

The Senate Resolution was adopted.

S. 1193 -- Senator Jackson: A CONCURRENT RESOLUTION TO URGE THE AMERICAN BAR ASSOCIATION TO GIVE ITS FAVORABLE CONSIDERATION FOR THE THURGOOD MARSHALL AWARD TO ONE OF SOUTH CAROLINA'S MOST DISTINGUISHED CITIZENS, JUDGE MATTHEW J. PERRY.

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

REPORT OF STANDING COMMITTEE

Senator PEELER from the Committee on Fish, Game and Forestry submitted a favorable with amendment report on:

H. 3879 -- Rep. Witherspoon: A BILL TO AMEND SECTION 50-3-315, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEPUTY ENFORCEMENT OFFICERS OF THE NATURAL RESOURCES ENFORCEMENT DIVISION OF THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO REVISE THEIR AUTHORITY, POWERS, AND REQUIREMENTS.

Ordered for consideration tomorrow.

PRESIDENT PRESIDES

At 11:32 A.M., the PRESIDENT assumed the Chair.

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

ORDERED ENROLLED FOR RATIFICATION

The following Bills were read the third time and having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:

H. 4398 -- Reps. Harrison, Cromer, Jennings, Hutson, Bailey and Allison: A BILL TO AMEND TITLE 40, CHAPTER 41, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 9 SO AS TO DEFINE "RETAILER", TO REQUIRE A RETAILER TO KEEP A RECORD OF THE SOURCE OF NEW MERCHANDISE THAT THE RETAILER OFFERS FOR SALE, TO SPECIFY THE TYPE OF RECORD OR DOCUMENTATION THAT IS REQUIRED, TO PROVIDE THAT THE MERCHANDISE MAY BE CONFISCATED BY A LAW ENFORCEMENT OFFICER UNDER CERTAIN CIRCUMSTANCES, TO PROVIDE EXEMPTIONS, AND TO PROVIDE A PENALTY FOR VIOLATION.

(By prior motion of Senator MOORE, with unanimous consent)

H. 4581 -- Reps. J. Harris, Baxley and Jennings: A BILL TO AMEND ACT 205 OF 1993, RELATING TO THE MEMBERS OF THE DISTRICT BOARD OF EDUCATION OF THE CHESTERFIELD COUNTY SCHOOL DISTRICT, SO AS TO REVISE THE MANNER IN WHICH CERTAIN VACANCIES ON THE BOARD SHALL BE FILLED.

(By prior motion of Senator HOLLAND)

H. 3898 -- Rep. Sharpe: A BILL TO AMEND SECTION 50-23-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CERTIFICATES OF TITLE FOR WATERCRAFT AND OUTBOARD MOTORS, SO AS TO DELETE THE REQUIREMENT THAT APPLICATIONS FOR CERTIFICATES BE SWORN TO BEFORE NOTARY PUBLICS OR OTHER APPROPRIATE PERSONS.

H. 4332 -- Reps. Sharpe, Sandifer and Jennings: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-17-423 SO AS TO REQUIRE THE USE OF APPROVED BYCATCH REDUCTION DEVICES IN SHRIMP TRAWLS.

THIRD READING BILLS

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

S. 741 -- Senator J. Verne Smith: A BILL TO AMEND SECTION 40-22-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE QUALIFICATIONS FOR REGISTRATION AS A PROFESSIONAL LAND SURVEYOR, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE, AMONG OTHER THINGS, FOR GRADUATION FROM A SCHOOL OR COLLEGE OF TWO OR MORE YEARS WITH AN ASSOCIATE DEGREE IN AN ABET COMMISSION ACCREDITED CURRICULUM OF ENGINEERING TECHNOLOGY OR LAND SURVEYING, INCLUDING COMPLETED COURSES IN SURVEYING AND MAPPING OF NOT LESS THAN TWELVE SEMESTER HOURS OR THE EQUIVALENT IN QUARTER HOURS SATISFACTORY TO THE BOARD; TO AMEND SECTION 40-22-240, RELATING TO THE QUALIFICATIONS FOR REGISTRATION AS A TIER B PROFESSIONAL LAND SURVEYOR, SO AS TO PROVIDE FOR FIFTEEN, RATHER THAN TWELVE, SEMESTER HOURS OR THE EQUIVALENT IN QUARTER HOURS OF SURVEYING, MAPPING, HYDRAULICS, AND HYDROLOGY COURSES; TO AMEND SECTION 40-22-250, RELATING TO THE QUALIFICATIONS FOR CERTIFICATION AS LAND SURVEYOR-IN-TRAINING, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE, AMONG OTHER THINGS, FOR THE COMPLETION OF COURSES IN SURVEYING AND MAPPING OF NOT LESS THAN TWELVE SEMESTER HOURS OR THE EQUIVALENT IN QUARTER HOURS; AND TO AMEND SECTION 40-22-280, RELATING TO ENGINEERS AND LAND SURVEYORS, APPLICATIONS FOR REGISTRATION, AND REFERENCES, SO AS TO CHANGE THE PROVISIONS CONCERNING REFERENCES FOR ENGINEERING REGISTRATION AND LAND SURVEYING REGISTRATION.

(By prior motion of Senator McCONNELL, with unanimous consent)

S. 1164 -- Judiciary Committee: A BILL TO AMEND PART I, ARTICLE 2, CHAPTER 2, TITLE 62, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INTESTATE SUCCESSION, BY ADDING SECTION 62-2-114, SO AS TO PROVIDE THAT IF THE PARENTS, WHO ARE HEIRS OF A CHILD PURSUANT TO 62-2-103(2), ARE DIVORCED, SEPARATED, OR LIVING APART, UPON MOTION OF EITHER PARENT, THE PROBATE COURT MAY DENY OR LIMIT EITHER PARENT'S ENTITLEMENT FOR A SHARE OF THE PROCEEDS IF THE COURT DETERMINES, BY A PREPONDERANCE OF THE EVIDENCE, THAT THE PARENT HAS REFUSED TO REASONABLY SUPPORT THE DECEDENT AS DEFINED IN SECTION 20-7-40 AND HAS OTHERWISE NOT PROVIDED FOR THE NEEDS OF THE DECEDENT; AND TO AMEND SECTION 42-9-140, RELATING TO WORKERS' COMPENSATION PAYMENTS WHEN A DECEASED EMPLOYEE LEAVES NO DEPENDENTS, SO AS TO PROVIDE THAT THE COMMISSION MAY DENY OR LIMIT PAYMENTS TO A PARENT WHO IS OTHERWISE ENTITLED TO RECOVER AMOUNTS PROVIDED FOR A DECEASED EMPLOYEE IF THE COMMISSION DETERMINES, BY A PREPONDERANCE OF THE EVIDENCE, THAT THE PARENT HAS REFUSED TO REASONABLY SUPPORT THE DECEDENT AS DEFINED IN SECTION 20-7-40 AND HAS OTHERWISE NOT PROVIDED FOR THE NEEDS OF THE DECEDENT.

S. 506 -- Senator Saleeby: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-415 SO AS TO PROVIDE THAT UPON GIVING THE WORKERS' COMPENSATION COMMISSION DOCUMENTATION THAT A SUBCONTRACTOR HAS REPRESENTED HIMSELF TO A CONTRACTOR AS HAVING WORKERS' COMPENSATION INSURANCE AT THE TIME THE SUBCONTRACTOR WAS ENGAGED BY THE CONTRACTOR TO PERFORM WORK, THE CONTRACTOR IS RELIEVED OF RESPONSIBILITY FOR ALL CLAIMS FILED BY EMPLOYEES OF AN UNINSURED SUBCONTRACTOR, PROVIDE FOR THE EXCLUSIVE REMEDY OF THOSE EMPLOYEES, AND PROVIDE FOR THE CIRCUMSTANCES AND PENALTIES FOLLOWING THE FILING OF FALSE DOCUMENTATION OF WORKERS' COMPENSATION INSURANCE BY A SUBCONTRACTOR TO A CONTRACTOR OR A HIGHER TIER SUBCONTRACTOR.

SECOND READING BILL
WITH NOTICE OF GENERAL AMENDMENTS

The following Bill having been read the second time with notice of general amendments was ordered placed on the third reading Calendar:

S. 917 -- Senators Wilson, Lander, Hayes, Reese, Elliott, Alexander and Setzler: A BILL TO AMEND SECTION 56-3-1820, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPECIAL LICENSE PLATES FOR NATIONAL GUARD MEMBERS, SO AS TO ELIMINATE THE THIRTY DOLLAR BIENNIAL FEE.

Senators PASSAILAIGUE and WILSON spoke on the Bill.

SECOND READING BILL

The following Joint Resolution having been read the second time was ordered placed on the third reading Calendar:

H. 4402 -- Rep. Cobb-Hunter: A JOINT RESOLUTION AUTHORIZING THE COMMISSION FOR MINORITY AFFAIRS TO RECEIVE FUNDS FROM PUBLIC AND PRIVATE SOURCES FOR RESEARCH, FORUMS, TRAINING, AND INSTITUTES AND TO ALLOW THESE FUNDS TO BE RETAINED BY THE COMMISSION AND CARRIED FORWARD INTO FISCAL YEAR 1996-97 AND EXPENDED FOR THE SAME PURPOSES.

AMENDED, READ THE SECOND TIME

H. 4365 -- Reps. Lanford, Walker, Keyserling, Jennings, Cain, Bailey, Law, Simrill, Herdklotz and Seithel: A BILL TO AMEND SECTION 44-61-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EMERGENCY MEDICAL TECHNICIAN CERTIFICATES, SO AS TO PROHIBIT DENYING A FIREFIGHTER ENTRY INTO AN EMERGENCY MEDICAL TECHNICIAN COURSE BASED ON WHETHER OR NOT THE FIREFIGHTER'S DEPARTMENT HAS AN AMBULANCE.

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

Senator ELLIOTT proposed the following amendment (DKA\3576AC.96), which was adopted:

Amend the bill, as and if amended, page 2, Section 44-61-30(b), by deleting line 3, and inserting:

/(b)   The EMS program shall include, but not be limited to,:/.

Amend further, page 2, Section 44-61-30(c), by deleting lines 26-27, and inserting:

/government and all such others as are deemed appropriate Medical University of South Carolina, University of South Carolina School of Medicine, South Carolina College of Emergency Physicians, South Carolina Emergency Nurses Association, Emergency Preparedness Division of the Office of the Adjutant General, South Carolina Emergency Medical Services Association, State Board of Technical and Comprehensive Education, Governor's Office of Highway Safety, Department of Health and Human Services, four regional Emergency Medical Services councils, and one EMT first responder agency. Membership on the council shall must/.

Amend further, page 3, Section 44-61-90, by deleting line 5, and inserting:

/maintain records that include, but are not limited to, approved/.

Amend further, page 3, by deleting SECTION 7 and inserting:

/SECTION   7.   This act takes effect January 1, 1997./.

Amend title to conform.

Senator ELLIOTT explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

POINT OF ORDER

H. 3339 -- Rep. Koon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-1538 SO AS TO REQUIRE DRIVERS OF MOTOR VEHICLES TRAVELING THROUGH AN EMERGENCY SCENE TO USE CAUTION AND DRIVE AT A REASONABLE SPEED, PROVIDE PENALTIES, AND PROVIDE EMERGENCY WORKERS CONTROL OVER THE EMERGENCY SCENE.

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

Point of Order

Senator McCONNELL raised a Point of Order that under Rule 38, the Bill had not been on the desks of the members at least one day prior to second reading.

The PRESIDENT sustained the Point of Order.

CARRIED OVER

H. 4334 -- Reps. Sharpe, Sandifer, Inabinett and Riser: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-13-800 SO AS TO PROVIDE REQUIREMENTS AND PENALTIES FOR THE TAKING OF EELS.

On motion of Senator PEELER, the Bill was carried over.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

AMENDMENT PENDING, DEBATE INTERRUPTED

H. 3901 -- Reps. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen: A BILL TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.

The Senate proceeded to a consideration of the Bill. The question being the adoption of Amendment No. 5 (BBM\10332HTC.95) proposed by Senators WILSON, THOMAS, COURSON and GIESE and previously printed in the Journal of June 1, 1995.

Senators WILSON, THOMAS, COURSON and GIESE proposed the following amendment (BBM\10332HTC.95):

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

/A.   (1)   Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-217.   Notwithstanding any other provision of law, once every fourth year each county or the State shall appraise and equalize those properties under its jurisdiction. Upon completion of the reassessment program, the county or State shall notify every taxpayer of any change in value or classification if the change is one thousand dollars or more. The county and State shall have one year to resolve appeals in value or classification. In the fifth year, the county or State shall implement the program and assess all property on the newly appraised values."

(2)   Subsection (A) of Section 12-45-75 of the 1976 Code, as added by Act 443 of 1994, is amended to read:

"(A)   The governing body of a county may by ordinance allow a taxpayer to elect to pay all ad valorem taxes on real property located in the county in quarterly installments. No installment election is allowed for taxes paid through an escrow account.

The ordinance must specify the installment due dates and it may provide for installments due and payable before January fifteenth, but the final installment due date must be January fifteenth. The ordinance may provide for a service charge of not more than two dollars on installment payments. For purposes of payment and collection, these service charges are deemed property taxes. The ordinance may not provide penalties for late installments."

B.   Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-142.   (A)   The governing body of a county may not increase the millage rate and fee rates imposed for operating purposes, excluding utilities, above the rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body of the county. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1)   in response to a natural or environmental disaster as declared by the Governor;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment.

(B)   Notwithstanding any provision of the law to the contrary, the millage rate and fee rates may be further increased upon a two-thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670."

C.   Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:

"Section 5-21-70.   (A)   The governing body of a municipality may not increase the millage rate and fee rates, excluding utilities, imposed for operating purposes above the rate and fee rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body of the municipality. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1)   in response to a natural or environmental disaster as declared by the Governor;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment.

(B)   Notwithstanding any provision of the law to the contrary, the millage rate and fee rates may be further increased upon a two-thirds vote of the governing body. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section will prohibit the use of energy-saving performance contracts as provided in Section 48-52-670."

D.   Article 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-60.   (A)   The governing body authorized by law to levy special purpose or public service district taxes may not increase the millage rate imposed for operating purposes above the rate imposed for such purposes for the prior tax year. The millage rate may, however, be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body authorized by law to levy special purpose or public service district taxes. Notwithstanding the limitation upon millage rate increases contained in this subsection and only to the extent authorized by law on the effective date of this section, the governing body authorized by law to levy special purpose or public service district taxes may increase the millage rate for the following purposes:

(1)   in response to a natural or environmental disaster as declared by the Governor;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of special purpose or public service district funds, personnel, facilities, or equipment.

(B)   The millage rate may be further increased upon a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account.

(D)   The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a public or special purpose district to the extent those limitations are more restrictive than the provisions of this section."

E.   Chapter 73, Title 59 of the 1976 Code is amended by adding:

"Section 59-73-35.   (A)   The governing body authorized by law to levy school taxes may not increase the millage rate imposed for operating purposes above the rate imposed for such purposes for the prior tax year.

(B)   The millage rate may, however, be increased by the percentage increase in the Consumer Price Index upon a three-fifths vote of the governing body authorized by law to levy school taxes of the school district. Notwithstanding the limitation upon millage rate increases contained in this subsection, the millage rate may be increased for the following purposes:

(1)   to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030;

(2)   in response to a natural or environmental disaster as declared by the Governor;

(3)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(4)   to raise the revenue necessary to comply with judicial mandates requiring the use of school district funds, personnel, facilities, or equipment.

(C)   Notwithstanding any provision of law to the contrary, the millage rate may be increased upon a two-thirds vote of the governing body authorized by law to levy school taxes of the school district. Any new sources of revenues for operating purposes must be approved by a two-thirds vote of the governing body authorized by law to levy school taxes of the school district.

(D)   The restriction contained in this section shall not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670.

(E)   The provisions of this section may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a school district to the extent those limitations are more restrictive than the provisions of this section.

(F)   The provisions of this section do not apply to a school district in which any increase in the ad valorem school tax levy for a particular year must be approved by the qualified electors of the school district in a referendum."

F.   Article 3, Chapter 43, Title 12 of the 1976 Code is amended by adding:

"Section 12-43-350.   Affected political subdivisions must use a tax bill which must contain standard information and include the following:

(1)   name and address of owner;

(2)   tax map number;

(3)   location of property;

(4)   appraised value;

(5)   assessed value;

(6)   assessed ratio;

(7)   millage for each tax district;

(8)   receipt number;

(9)   total tax liability for current year;

(10)   state property tax relief benefit (savings);

(11)   local option sales tax credit."

G.   Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-80.   (A)   The counties, municipalities, special purpose, or public service and school districts of this State must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section in at least one South Carolina newspaper of general, audited circulation in the area. The public hearing must give the residents of the jurisdiction the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given not less than fifteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with at least a twenty-four point headline.

(B)   The notice shall include the following:

(1)   the governing entity's name;

(2)   the time, date, and location of the public hearing on the budget;

(3)   the total, actual, and projected expenditures of the current operating fiscal year in the budget of the governing entity;

(4)   the proposed total projected operating expenditures for the next fiscal year as proposed in next year's budget for the governing entity;

(5)   the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;

(6)   the total, actual, and projected revenue of all property taxes in dollars for the current fiscal year budget;

(7)   the proposed total projected revenue of all property taxes in dollars for the proposed budget;

(8)   the millage for the current fiscal year;

(9)   the proposed millage as proposed in the budget for the next fiscal year;

(10)   the rollback millage rate, computed by dividing the current year's property tax revenues by the budget year property tax assessment base;

(11)   any new fees or taxes that would affect more than five percent of the total proposed budget; and

(12)   estimated local option sales tax credit, if applicable.

(C)   The requirements of this section apply in the preparation of annual budget and supplemental appropriations. When the counties, municipalities, and special purpose or public service districts, and school districts determine that they require a greater tax rate after the adoption of the budget or during the current fiscal year, or fail to provide notice within the above-specified period, they also must comply with the notice requirements of this section."

H.   There shall be established a committee which shall be known as the "Joint Ad Hoc Committee on Unfunded Mandates" (hereinafter the "committee"). The committee shall be composed of three members appointed from the House of Representatives by the Speaker of the House of Representatives, three members appointed from the Senate by the President of the Senate, and three members appointed by the Governor. The committee shall investigate and review the role of unfunded mandates and their impact on the counties of this State. The committee shall hold public hearings and report to the General Assembly with specific recommendations on the repeal or modification of all unfunded mandates in existence as of July 1, 1995. The committee's consideration of unfunded mandates shall include, but is not limited to, those mandates imposed by statute, regulation, and judicial interpretation. The committee shall issue a report and make its recommendations to the General Assembly prior to the commencement of the Second Session of the 111th General Assembly. Upon issuing its report, the committee terminates.

I.   The 1976 Code is amended by adding:

"Section 12-47-75.   If a taxpayer or his agent pays property taxes in error, or the payment is erroneously credited, the treasurer shall credit the amount paid against the actual liability of the taxpayer for the tax year in question. This section applies for any tax year for which proof is provided."

J.   (1)   The first paragraph of Section 12-43-220(c) of the 1976 Code, as last amended by Act 164 of 1993, is further amended to read:

"The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. This subsection (c) is not applicable unless the owner of the property or his agents make written application apply therefor to the county assessor on or before the first penalty date for taxes due for the first tax year in which the assessment under this article is made and certify to the following statement: 'Under the penalty of perjury I certify that I meet the qualifications for the special assessment ratio for a legal residence as of January first of for the appropriate tax year'.

To qualify for this special assessment ratio, the owner-occupant must have actually occupied the residence, prior to the date of application, for some period during the tax year and remain an owner-occupant at the time of application. However, when a new or renovated residential property has been certified for occupancy after the beginning of a tax year, the property must be assessed as provided in item (e) on the unimproved value of the property."

(2)   This section takes effect upon approval by the Governor and applies with respect to property tax years beginning after 1994.

K.   Section 11-11-440(A) of the 1976 Code is amended to read:

"(A)   The General Assembly may not provide for any general tax increase or enact new general taxes in the permanent provisions of the State General Appropriation Act or acts supplemental thereto, and any such general tax increases or new general taxes must be enacted only by separate act passed by a vote of at least two-thirds of the members of each house."

L.   Notwithstanding the provisions of Section 12-43-220(d)(3) of the 1976 Code, the deadline for filing for agricultural use value for property owned as of December 31, 1993, is extended to January 15, 1996.

M.   This section takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Senator WILSON was recognized.

Objection

Senator WILSON asked unanimous consent to make a motion, with Senator WILSON retaining the floor, to substitute for consideration Amendment No. 5A in lieu of Amendment No. 5.

Senator PASSAILAIGUE objected.

Objection

Senator WILSON asked unanimous consent to make a motion, with Senator WILSON retaining the floor, to amend Amendment No. 5.

Parliamentary Inquiry

Senator PASSAILAIGUE made a Parliamentary Inquiry as to whether or not Amendment No. 5A, the proposed substitute amendment, was a strike and insert amendment.

The PRESIDENT stated that Amendment No. 5A was a strike and insert amendment.

Senator PASSAILAIGUE objected.

Senator WILSON spoke on Amendment No. 5.

Motion Adopted

On motion of Senators COURSON and GIESE, with unanimous consent, Senators COURSON and GIESE were added as co-sponsors of Amendment No. 5.

Senator WILSON argued in favor of the adoption of Amendment No. 5 and Senator McCONNELL argued contra.

Senator DRUMMOND spoke on the amendment.

On motion of Senator DRUMMOND, debate was interrupted by recess.

RECESS

At 1:30 P.M., the Senate stood in recess until 3:00 P.M.

AFTERNOON SESSION

The Senate reassembled at 3:14 P.M. and was called to order by the PRESIDENT.

REGULATIONS RECEIVED

The following were received and referred to the appropriate committees for consideration:

Document No. 1895
Promulgated by Department of Health and Environmental Control
Solid Waste Management: Land Application of Solid Waste
Received by Lt. Governor February 16, 1996
Referred to Senate Committee on Medical Affairs
120 day review expiration date June 15, 1996 (Subject to Sine Die revision)

Document No. 1915
Promulgated by Department of Health and Environmental Control
Amendment of R.61-98, State Underground Petroleum Environmental Response Bank (SUPERB) Site Rehabilitation and Fund Access Regulation
Received by Lt. Governor February 22, 1996
Referred to Senate Committee on Medical Affairs
120 day review expiration date June 21, 1996 (Subject to Sine Die revision)

AMENDMENT WITHDRAWN, AMENDMENT PROPOSED
DEBATE INTERRUPTED

H. 3901 -- Reps. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen: A BILL TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.

The Senate resumed consideration of the Bill. The question being the adoption of Amendment No. 5 (BBM\10332HTC.95) proposed by Senators WILSON, THOMAS, COURSON and GIESE.

On motion of Senator WILSON, with unanimous consent, Amendment No. 5 was withdrawn.

Point of Quorum

Senator McCONNELL made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator McCONNELL moved that a call of the Senate be made. The following Senators answered the call:

Alexander                 Boan                      Bryan
Cork                      Courson                   Courtney
Drummond                  Elliott                   Fair
Ford                      Giese                     Glover
Gregory                   Hayes                     Holland
Jackson                   Land                      Lander
Leatherman                Leventis                  Martin
McConnell                 Mescher                   Moore
O'Dell                    Passailaigue              Peeler
Rankin                    Reese                     Rose
Russell                   Ryberg                    Setzler
Short                     Smith, G.                 Smith, J.V.
Waldrep                   Washington                Wilson

A quorum being present, the Senate resumed.

Presence Recorded

Senators SALEEBY, PATTERSON, MATTHEWS, RICHTER and McGILL recorded their presence subsequent to the Call of the Senate.

Amendment No. 15C

Senators PASSAILAIGUE, DRUMMOND, FORD, GIESE, GLOVER, GREGORY, HOLLAND, JACKSON, LAND, LEVENTIS, MATTHEWS, McCONNELL, McGILL, MESCHER, O'DELL, PATTERSON, RANKIN, REESE, ROSE and WASHINGTON proposed the following Amendment No. 15C (3901R033.ELP):

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

/PART I

SECTION   1.   A.   The State Election Commission shall conduct a statewide referendum on November 5, 1996, on the question of raising the sales tax in order to provide property tax relief. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:

"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent and to set aside the proceeds of the additional one percent to provide for five specific tax relief programs which are: (1) providing for a maximum refundable individual income tax credit of seventy-five dollars per return with each state return filed; (2) granting owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to referendum and those levied by special purpose or public service districts, county special tax districts, and for debt service; (3) increasing the depreciation allowance on business personal property; (4) phasing-out the income tax on state residents that have attained the age of sixty-five; and (5) decreasing the income tax on certain incorporated and unincorporated businesses?

[] Yes
[] No

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

B.   This SECTION takes effect upon approval by the Governor.

SECTION   2.   Chapter 29, Title 4 of the 1976 Code is amended by adding:

"Section 4-29-72.   For agreements executed after June 30, 1997, the provisions of Section 4-29-67 apply regardless of the amount of the project investment."

SECTION   3.   Section 11-11-140(D) of the 1976 Code is amended to read:

"(D)   Appropriations from surplus may not be made before the first meeting of the General Assembly following the Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated only for nonrecurring purposes. The Comptroller General is authorized to issue warrants to draw such sums as may be necessary from the year-end surplus, and then the general fund of the State, to fully fund the Property Tax Relief Fund, as established pursuant to Article 11, Chapter 36 of Title 12."

SECTION   4.   Section 11-11-330 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 11-11-330.(A)   There is created a 'State Property Tax Relief Fund' Funds credited to the 'State Property Tax Relief Fund' must be used to provide property tax relief in the manner prescribed in Section 12-37-251. The General Assembly shall appropriate an amount sufficient to reimburse sums equal to the amount of taxes that were not collected for the local government by reason of the exemption provided in Section 12-37-251. The revenues in this fund must be distributed quarterly beginning in the month of October of each year by the Comptroller General to reimburse property taxing jurisdictions a sum equal to that not collected in the jurisdiction for property tax year 1997 because of the property tax exemption provided for in Section 12-37-251. If sufficient revenues are not available in this fund to pay the required reimbursements, the Comptroller General shall pay the difference from the year-end surplus revenues at the close of the preceding fiscal year and the general fund of the State, if necessary. County treasurers and municipal governing bodies, where appropriate, shall file quarterly reports of estimated revenue losses attributable to Section 12-37-251 with the Comptroller General in the manner and at the time the Comptroller General directs. After making any changes necessary to ensure accuracy, the Comptroller General shall make reimbursements based on these estimates. Any funds paid by the Comptroller General as the result of an erroneous or improper application must be returned to the Comptroller General for deposit in the State Property Tax Relief Fund. For purposes of future distributions, property tax year 1997 is deemed the base year. The method used to calculate the reimbursement amount for 1997 is the method which must be used in subsequent years. Reimbursements for subsequent tax years must be equal to or greater than the base year reimbursement from the fund.

(B)To determine the amount of the reimbursement to provide for the funding of schools, revenue losses attributable to Section 12-37-251 in excess of the revenue losses in the adjusted base year are multiplied by the ratio that school tax reimbursements represented of total reimbursements from the fund for tax year 1997. These funds must be distributed monthly to school districts in a manner prescribed by the Department of Education. Any excess funds remaining after funds are distributed pursuant to this section must be distributed to local government in the manner provided in Chapter 27 of Title 6.

(C)   The Comptroller General shall promulgate regulations as may be necessary to carry out the provisions herein."

SECTION   5.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-525. On each individual tax return filed, there is allowed a refundable credit against the tax imposed pursuant to Section 12-6-510 in an amount equal to seventy-five dollars. This credit is reduced by five dollars for each one thousand dollars of taxable income in excess of one thousand dollars on the taxpayer's South Carolina individual income tax return."

SECTION   6.   Article 9, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-1165.   Beginning with the taxable year in which a resident individual attains the age of sixty-five, his taxable income is exempt from the tax imposed pursuant to Section 12-6-510 as follows:

(1)   for taxable years beginning in 1997, twenty percent of taxable income is exempt;

(2)   for taxable years beginning in 1998, forty percent of taxable income is exempt;

(3)   for taxable years beginning in 1999, sixty percent of taxable income is exempt;

(4)   for taxable years beginning in 2000, eighty percent of taxable income is exempt;

(5)   for taxable years beginning after 2001, one hundred percent of taxable income is exempt. The taxable income of a married individual eligible for this exemption who files a joint federal income tax return with a spouse who is not eligible for the exemption must be allocated between the spouses and only that taxable income to the eligible spouse is eligible for the exemption. The department shall prescribe the method of allocation."

SECTION   7.   A.   Section 12-6-1140 of the 1976 Code, as last amended by Act 76 of 1995, is further amended by adding at the end:

"(8)   Twenty-eight and one-half percent of amounts otherwise subject to tax under Section 12-6-510 received by or attributed to a taxpayer as a result of the taxpayer's status as a:

(1)   shareholder of a subchapter 'S' corporation;

(2)   partner in a partnership; or

(3)   member of a limited liability company.

No deduction is allowed under this item for a guaranteed payment to a partner for personal services rendered by the partner for the partnership."

B.   This section applies to taxable years beginning after 1996.

SECTION   8.   Section 12-36-940 of the 1976 Code is amended to read:

"Section 12-36-940.   Every retailer may add to the sales price:

(1)   no amount on sales of ten cents or less;

(2)   one cent on sales of eleven cents and over, but not in excess of twenty cents;

(3)   two cents on sales of twenty-one cents and over, but not in excess of forty cents;

(4)   three cents on sales of forty-one cents and over, but not in excess of sixty cents;

(5)   four cents on sales of sixty-one cents and over, but not in excess of eighty cents;

(6)   five cents on sales of eighty-one cents and over, but not in excess of one dollar;

(7)   one cent additional for each twenty cents or major fraction thereon in excess of one dollar.

The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.

A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."

SECTION   9.   Chapter 36, Title 12 of the 1976 Code is amended by adding:

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

Section 12-36-1110.   An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State.

SECTION   10.   A.   The gross proceeds of sales of tangible personal property delivered after June 30, 1997, in this State, either under the terms of a construction contract executed before July 1, 1997, or a written bid submitted before July 1, 1997, culminating in a construction contract entered into before or after July 1, 1997, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1998.

B.   Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1997.

SECTION   11.   A.   In each county in which is imposed the local option sales tax, a county governing body, by majority vote, may cause the referendum provided in Section 4-10-35 of the 1976 Code to be held at the time of the general election in 1996 and at the time of the general election every two years thereafter. If the question is approved, the tax is rescinded in the county in the manner provided by law.

The authority of the governing body provided in this section is in addition to the authority granted for a referendum question initiated by petition.

B.   This SECTION takes effect upon approval by the Governor.

SECTION   12.   Section 12-37-251 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 12-37-251.   (A)   Property classified pursuant to Section 12-43-220(c) is exempt from property taxes levied for other than bonded indebtedness and payments pursuant to lease-purchase agreements for capital construction. The exemption applies against millage imposed for school operations and the amount of fair market value of the homestead that is exempt from such millage must be set by the Director of the Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund. In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied as follows:

(1)   for debt service and for payments pursuant to lease-purchase agreements;

(2)   by special purpose or public service districts;

(3)   county special tax districts;

(4)   ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes.

(B)   Taxing entities must be reimbursed, in the manner provided in Section 12-37-270 in Section 11-11-330 for the revenue lost as a result of the homestead exemption provided in this section except that ninety percent of the reimbursement must be paid in the last quarter of the calendar year.

(C)   Notwithstanding any other provision of law, property exempted from property taxation in the manner provided in this section is considered taxable property for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the 'index of taxpaying ability' pursuant to Section 59-20-20(3).

(E)   In the year of reassessment the millage rate for all real and personal property must not exceed the rollback millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for the year immediately preceding the year of reassessment.

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

B.   This SECTION is effective for property tax years beginning after 1996.

SECTION   13.   A.   The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:

"In no event may the original cost be reduced more than eighty ninety percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term 'original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer."

B.   This SECTION takes effect January 1, 1997.

SECTION   14.   Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by SECTION 1 of this PART.

PART II

SECTION   1.   The State Election Commission shall conduct a statewide referendum on November 5, 1996, on the question of limiting the taxing power of local governments and placing a cap on the millage rate. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:

"Do you favor prohibiting municipalities, counties, or special purpose or public service districts from imposing any taxes or fees except those enacted before December 31, 1995, unless expressly authorized by the General Assembly and limiting the power of those local government entities to increase the millage rate beyond the consumer price index unless there is a declared emergency, to pay for a judicially-mandated spending, or to offset a prior year's deficit, unless two-thirds of the local governing body approve the millage rate increase?

[] Yes
[] No

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

SECTION   2.   Article 1, Chapter 9, Title 4 of the 1976 Code is amended by adding:

"Section 4-9-142.   (A)   The governing body of a county may not increase the millage rate and fee rates imposed for any purpose, excluding utilities, and except as provided in this section and Section 6-1-85, above the rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1)   in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rate and fee rates must return to the rates immediately preceding the emergency;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of county funds, personnel, facilities, or equipment.

(B)   Notwithstanding any other provision of law, the millage rate and fee rates also may be increased upon a two-thirds vote of the governing body. Any new sources of revenues for any purposes must be approved by a two-thirds vote of the governing body of the county. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   The restrictions contained in this section do not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contracts as provided in Section 48-52-670.

(D)   For the property tax year of implementation of the values resulting from a countywide reassessment and equalization program, the millage rate must not exceed the rollback millage, as defined in subsection (E), except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year of reassessment values implementation. The millage rate and fee rates may be further increased for the property tax year of implementation of reassessed values upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required.

(E)   The rollback millage rate is computed by dividing the budget year property tax assessment base by the current year's property tax revenues.

(F)   Contracts entered into under Chapter 12 of Title 4 are not subject to the provisions of this section."

SECTION   3.   Article 1, Chapter 21, Title 5 of the 1976 Code is amended by adding:

"Section 5-21-70.   (A)   The governing body of a municipality may not increase the millage rate and fee rates imposed for any purpose, excluding utilities, and except as provided in this section and Section 6-1-85, above the rates imposed for such purposes for the prior tax year. However, the millage rate and fee rates may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitation upon millage rate and fee rate increases contained in this subsection, the millage rate and fee rates may be increased for the following purposes:

(1)   in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rate and fee rates must return to the rates immediately preceding the emergency;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution, or to offset a deficit in providing a service or function which is funded through the imposition of fees by increasing such fees in an amount necessary to cover that deficit; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of municipal funds, personnel, facilities, or equipment.

(B)   Notwithstanding any other provision of law, the millage rate and fee rates may also be increased upon a two-thirds vote of the governing body. Any new sources of revenues for any purposes must be approved by a two-thirds vote of the governing body of the municipality. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   The restrictions contained in this section do not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contacts as provided in Section 48-52-670.

(D)   For the property tax year of implementation of the values resulting from a countywide reassessment and equalization program, the millage rate must not exceed the rollback millage, as defined in Section 4-9-142(E), except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year of reassessment values implementation. The millage rate and fee rates also may be increased for the year of reassessment values implementation upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required."

SECTION   4.   Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-60.   (A)   The governing body authorized by law to levy special purpose or public service district taxes may not increase the millage rate and fee rates imposed for any purpose above the rate imposed for such purpose for the prior tax year. The millage rate, however, may be increased by the percentage increase in the consumer price index based upon the southeastern average. Notwithstanding the limitation upon millage rate increases contained in this subsection and only to the extent authorized by law on the effective date of this section, the governing body authorized by law to levy special purpose or public service district taxes may increase the millage rate for the following purposes:

(1)   in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rate and fee rates must return to the rates immediately preceding the emergency;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of special purpose or public service district funds, personnel, facilities, or equipment.

(B)   The millage rate also may be increased upon a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. Any new sources of revenues for any purpose must be approved by a two-thirds vote of the governing body authorized by law to levy special purpose or public service district taxes. However, if the governing body has fewer than six members, a three-fifths vote is required.

(C)   Notwithstanding any other provision of law, the restrictions contained in this section do not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account.

(D)   The provisions of this section do not and may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a special purpose or public service district to the extent those limitations are more restrictive than the provisions of this section.

(E)   For the property tax year of implementation of the values resulting from a countywide reassessment and equalization program, the millage rate must not exceed the rollback millage, as defined in Section 4-9-142(E), except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year of reassessment values implementation. The millage rate and fee rates may also be increased in the year of reassessment values implementation upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required."

SECTION   5.   A.   Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-85.   Municipalities, counties, or special purpose or public service districts may not impose any taxes or fees on individuals, corporations, or other business entities except those fees or taxes enacted before December 31, 1995, or those fees or taxes expressly authorized by the General Assembly. This section does not affect the enactment by a county or municipality of an accommodations tax in addition to the tax provided in Section 12-36-2630(3) prior to March 30, 1996."

B.   This SECTION takes effect upon approval by the Governor.

SECTION   6.   Chapter 73, Title 59 of the 1976 Code is amended by adding:

"Section 59-73-35.   (A)   Except as provided in this section, the governing body authorized by law to levy school taxes may not increase the millage rate imposed for any purpose above the rate imposed for such purposes for the prior tax year.

(B)   The millage rate may be increased by the percentage increase in the consumer price index based upon the southeastern average or to meet the minimum required local Education Finance Act inflation factor as projected by the State Budget and Control Board, Division of Research and Statistics, and the per pupil maintenance of effort requirement of Section 59-21-1030. Notwithstanding the limitation upon millage rate increases contained in this subsection, the millage rate also may be increased for the following purposes:

(1)   in response to a natural or environmental emergency as declared by the Governor. However, upon revocation of the declared emergency or as soon as conditions or operations change to the extent the emergency no longer exists, millage rate and fee rates must return to the rates immediately preceding the emergency;

(2)   to offset a prior year's deficit, as required by Section 7, Article X of the South Carolina Constitution; or

(3)   to raise the revenue necessary to comply with judicial mandates requiring the use of school district funds, personnel, facilities, or equipment.

(C)   Notwithstanding any other provision of law, the millage rate also may be increased upon a two-thirds vote of the governing body authorized by law to levy school taxes of the school district. Any new sources of revenues for any purpose must be approved by a two-thirds vote of the governing body authorized by law to levy school taxes of the school district.

(D)   The restrictions contained in this section do not affect millage which is levied to pay bonded indebtedness or payments for real property purchased using a lease-purchase agreement or used to maintain a reserve account. Nothing in this section prohibits the use of energy-saving performance contacts as provided in Section 48-52-670.

(E)   For the property tax year of implementation of the values resulting from a countywide reassessment and equalization program, the millage rate must not exceed the rollback millage, as defined in Section 4-9-142(E), except that the rollback millage may be increased by the percentage increase in the consumer price index, based on the southeastern average, for the year immediately preceding the year of reassessment values implementation. The millage rate also may be increased during the year of reassessment values implementation upon a two-thirds vote of the governing body. However, if the governing body has fewer than six members, a three-fifths vote is required.

(F)   The provisions of this section do not and may not be construed to amend or repeal any existing provision of law limiting the fiscal autonomy of a school district to the extent those limitations are more restrictive than the provisions of this section.

(G)   The provisions of this section do not apply to a school district in which any increase in the ad valorem school tax levy for a tax year must be approved by the qualified electors of the school district in a referendum."

SECTION   7.   A.   There is created the Taxation Issues Task Force consisting of the chairman, or his designee, of the House Ways and Means Committee; the chairman, or his designee, of the Senate Finance Committee; and the following members to be appointed by the Governor, including one member as chairman of the task force:

(1) an individual who represents the interest of county governments;

(2) an individual who represents the interest of municipal governments;

(3) a prominent member of the public education community;

(4) a prominent member of the business community;

(5) a member of a taxpayers' rights organization;

B.   The Taxation Issues Task Force shall:

(1)   study the various issues relating to taxation, fees, and licenses, including but not limited to, ad valorem tax relief, "home-rule" and the authority of counties and municipalities to impose taxes and fees, the funding of public schools, economic development, and alternative revenue sources;

(2)   seek fair and equitable solutions to the conflicts relating to these issues by conducting research and compiling data which must include input from the taxpayers of the State;

(3)   report its findings to the General Assembly no later than March 1, 1997.

C.   The members of the task force shall receive the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions.

D.   The Governor and the chairmen of the House Ways and Means Committee and the Senate Finance Committee shall jointly designate staff from each of their offices to provide necessary administrative, legal, and research services for the task force, and to the extent practical, use the personnel of appropriate state agencies and commissions with such administrative and legal resources. The Governor's office, the House Ways and Means Committee, and the Senate Finance Committee shall share pro rata the expenses of the task force.

E.   The provisions of this SECTION shall remain in force until the task force completes and submits to the General Assembly the report required in subsection B (3).

SECTION   8.   Upon approval by the Governor, this PART takes effect July 1, 1997, or as otherwise provided, but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by SECTION 1 of this PART./

Amend title to conform.

Senator PASSAILAIGUE explained the amendment.

ACTING PRESIDENT PRESIDES

At 4:09 P.M., Senator MARTIN assumed the Chair.

Senator PASSAILAIGUE continued arguing in favor of the adoption of the amendment.

Senator LAND spoke on the amendment.

PRESIDENT PRESIDES

At 4:26 P.M., the PRESIDENT assumed the Chair.

Senator LAND continued arguing in favor of the adoption of the amendment.

Leave of Absence

On motion of Senator GIESE, at 4:30 P.M., Senator LANDER was granted a leave of absence until 5:30 P.M.

Senator LAND continued arguing in favor of the adoption of the amendment.

Senator LEATHERMAN argued contra to the adoption of the amendment.

With Senator LEATHERMAN retaining the floor, Senator DRUMMOND asked unanimous consent to make a motion that the Senate go into Executive Session, and upon lifting the veil of secrecy, stand adjourned.

There was no objection.

Debate was interrupted by adjournment, with Senator LEATHERMAN retaining the floor.

LOCAL APPOINTMENTS
Confirmations

Having received a favorable report from the Union County Delegation, the following appointment was confirmed in open session:

Reappointment, Union County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

Honorable Jack B. Webber, Post Office Box 357, Lockhart, S.C. 29364

Having received a favorable report from the Dorchester County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Charleston Naval Facilities Redevelopment Authority, with term to commence April 24, 1995, and to expire April 24, 1999:

Dorchester County:

Mr. Ronnie Givens, Post Office Box 1118, Summerville, S.C. 29484 VICE James C. Bryan (moved to At-Large membership)

EXECUTIVE SESSION

On motion of Senator PEELER, the seal of secrecy was removed, so far as the same relates to appointments made by the Governor and the following names were reported to the Senate in open session:

STATEWIDE APPOINTMENTS
Confirmations

Having received a favorable report from the Committee on Labor, Commerce and Industry, the following appointments were confirmed in open session:

Reappointment, South Carolina Real Estate Appraisers Board, with term to commence May 31, 1996, and to expire May 31, 1999:

Appraiser:

Mr. Lamar Mason, Mason Realty, Inc., 3938 Farrow Road, Columbia, S.C. 29203

Initial Appointment, South Carolina State Housing Finance and Development Authority, with term to commence August 15, 1996, and to expire August 15, 2000:

At-Large:

Mr. Raymond A. Harris, 212 Fairway Drive, Darlington, S.C. 29532 VICE Dee A. Smith

Initial Appointment, Jobs Economic Development Authority, with term to commence July 27, 1995, and to expire July 27, 1998:

At-Large:

Mr. Clarence Davis, Post Office Box 11070, Columbia, S.C. 29211 VICE Charles L. Appleby, III (resigned)

Reappointment, Jobs Economic Development Authority, with term to commence July 27, 1996, and to expire July 27, 1999:

3rd Congressional District:

Mr. Jeffrey W. Childress, Dixie Tool, Inc., Post Office Box 407, Easley, S.C. 29641

Reappointment, South Carolina Real Estate Appraisers Board, with term to commence May 31, 1996, and to expire May 31, 1999:

Mortgage Banker:

Mr. Joseph C. Reynolds, Carolina First Bank, Post Office Box 12249, Columbia, S.C. 29211

Having received a favorable report from the Committee on Medical Affairs, the following appointments were confirmed in open session:

Initial Appointment, Commission of Hearing Aid Specialists, with term to commence July 31, 1995, and to expire July 31, 1999:

State Health Officer or Designee:

Mr. Mason R. Brooks, Department of Health and Environmental Control, 2600 Bull Street, Columbia, S.C. 29201 VICE Michael Jarrett (deceased)

Initial Appointments, South Carolina Advisory Commission on Aging, with terms to commence June 30, 1995, and to expire June 30, 1999:

At-Large:

Ms. Dianne R. Dantzler, 39 Canterbury Court, Columbia, S.C. 29210

Ms. Diane M. Brown, 368 South Barrington Drive, Florence, S.C. 29501

Honorable John T. Nave, 606 Brooklane Drive, Greenwood, S.C. 29649

Initial Appointments, South Carolina Advisory Commission on Aging, with terms to commence June 30, 1995, and to expire June 30, 1998:

Area 6:

Mr. Richard M. Denny, 805 Bethune Road, Bishopville, S.C. 29010

Area 2:

Ms. Norma A. Curtis, Post Office Box 958, McCormick, S.C. 29835

Initial Appointments, South Carolina Advisory Commission on Aging, with terms to commence June 30, 1995, and to expire June 30, 1997:

Area 7:

Ms. Mildred Browder-Hughes, 355 East Broadway Street, Johnsonville, S.C. 29555

Area 5:

Mark J. Meiler, M.D., 148 University Parkway, Aiken, S.C. 29801

Reappointment, Commission on Disabilities and Special Needs, with term to commence June 30, 1996, and to expire June 30, 2000:

2nd Congressional District:

Mr. Melvin L. Burton, Jr., 6000 Lakeshore Drive, Columbia, S.C. 29206

Having received a favorable report from the General Committee, the following appointments were confirmed in open session:

STATEWIDE APPOINTMENTS

Initial Appointments, Advisory Board of Trustee for the Veterans' Trust Fund of South Carolina, with terms to commence September 15, 1995, and to expire at the pleasure of the Governor:

County Officer:

Mr. Clarence T. McGee, Berkeley County Veterans Affairs Officer, 223 North Live Oak Drive, Moncks Corner, S.C. 29461

Veterans Organization:

Mr. Milford A. Forrester, 28 Scarlett Street, Greenville, S.C. 29607-2827

Mr. J. Steve Murphy, Jr., 328 Burns Avenue, Easley, S.C. 29640-3776

Reappointment, South Carolina Foster Care Review Board, with term to commence June 30, 1996, and to expire June 30, 2000:

5th Congressional District:

Mrs. Judy M. Hamrick, 202 Union Street, Gaffney, S.C. 29340

Initial Appointment, State Board of Social Work Examiners, with term to commence November 27, 1992, and to expire November 27, 1996:

Master:

Mr. John R. Kennedy, 6 Hillstone Ct., Columbia, S.C. 29212 VICE William Deemer/Charles Abercrombie

Initial Appointment, Prisoner of War Commission, with term to commence July 1, 1995, and to expire July 1, 1999:

1st Congressional District:

Mr. Charles E. Youngblood, 1572 Bay Tree Lane, Myrtle Beach, S.C. 29575-5254 VICE Jacob E. Smart

Reappointment, South Carolina Arts Commission, with term to commence June 30, 1996, and to expire June 30, 1999:

At-Large:

Ms. Patricia E. Wilson, 9 Country Club Court, Columbia, S.C. 29206

Initial Appointment, State Athletic Commission, with term to commence June 30, 1996, and to expire June 30, 2000:

At-Large:

Mr. John R. Robertson, 1805 Cedarbrook Drive, Columbia, S.C. 29212 VICE Chris G. Hitopoulos

Initial Appointment, South Carolina Public Service Authority, with term to commence May 19, 1992, and to expire May 19, 1999:

1st Congressional District:

Mrs. Juanita W. Brown, 2311 Portside Way, Charleston, S.C. 29407 VICE W. Melvin Brown (deceased)

Having received a favorable report from the Committee on Judiciary, the following appointments were confirmed in open session:

Reappointment, State Ethics Commission, with term to commence June 30, 1996, and to expire June 30, 2001:

At-Large:

Mr. Richard Vance Davis, 117 Hialeah Road, Greenville, S.C. 29607

Reappointment, State Human Affairs Commission, with term to commence June 30, 1996, and to expire June 30, 1999:

2nd Congressional District:

Mrs. Jo Anne B. Whitehead, 113 Fifeshire Drive, Columbia, S.C. 29212

Initial Appointments, South Carolina Workers' Compensation Commission, with terms to commence June 30, 1996, and to expire June 30, 2002:

At-Large:

Ms. Ann M. Mickle, 2223 Lincoln Street, Columbia, S.C. 29201 VICE Mary Montgomery Elliott

Mr. Donald Van Riper, 305 Jones Avenue, #4, Greenville, S.C. 29605 VICE David William Huffstetler

Having received a favorable report from the Committee on Education, the following appointments were confirmed in open session:

Reappointments, John de la Howe School Board of Trustees, with terms to commence April 1, 1995, and to expire April 1, 2000:

At-Large:

Mr. Sylvester E. Williams, III, 205 Briggs Avenue, Greenwood, S.C. 29649

Ms. Elizabeth M. Dillbeck, Post Office Box 1473, McCormick, S.C. 29835

Initial Appointment, John de la Howe School Board of Trustees, with term to commence April 1, 1993, and to expire April 1, 1998:

At-Large:

Ms. Diane J. Brock, 213 Polaris Street, Anderson, S.C. 29621 VICE Hugh Z. Graham

Having received a favorable report from the Committee on Fish, Game and Forestry, the following appointments were confirmed in open session:

Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 1990, and to expire July 1, 1996:

6th Congressional District:

Mr. Edwin L. Oxner, CPA, Post Office Drawer 4707, Florence, S.C. 29502 VICE Phillip D. Lowe (resigned)

Reappointments, Governing Board of the Department of Natural Resources, with terms to commence July 1, 1996, and to expire July 1, 2000:

4th Congressional District:

George G. Graham, D.D.S., 225 East Wood Street, Spartanburg, S.C. 29303

6th Congressional District:

Mr. Edwin L. Oxner, CPA, Post Office Drawer 4707, Florence, S.C. 29502

Having received a favorable report from the Committee on Transportation, the following appointment was confirmed in open session:

Reappointment, South Carolina State Ports Authority, with term to commence February 13, 1996, and to expire February 13, 2003:

At-Large:

Mr. Gayle O. Averyt, Post Office Box 1365, Columbia, S.C. 29202

MOTION ADOPTED

On motion of Senator GREG SMITH, with unanimous consent, the Senate stood adjourned out of respect to the memory of the Honorable A.E. Barnhill, Jr. of the Pleasant Hill Community, S.C.

ADJOURNMENT

At 5:25 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M.

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