Legislative Update, May 25, 1999
Vol. 16 May 25, 1999 No. 20
CONTENTS
Week in Review...... 02
House Committee Action...... 10
Bills Introduced in the House...... 15
WEEK IN REVIEW
HOUSE
The House of Representatives amended Senate amendments to H.3002 providing for the taxation and revised regulation of video poker machines and other such coin-operated devices. The legislation, as amended by the House, retains the $125 maximum payout per individual, per day, per location as provided under current law. The legislation, as amended by the House, also revises licensure fees and application and renewal procedures; specifies record-keeping requirements for video poker operators; taxes net machine income at 30%; provides for an additional tax on net machine income for machines that are in an establishment located within 500 feet of another establishment in the same structure with the same owner; prohibits casinos; provides that a license may not be issued for a machine located on a watercraft or vessel plying the territorial waters of the state; restricts activities which may be conducted at sites with video poker; places limits on advertisement; limits hours of operation; prohibits a business with video poker machines and other such devices from deriving the primary portion of its proceeds from the machines; establishes computer monitoring of machines; provides for background investigations of license applicants; establishes limitations for the location of licensed video poker machines; and provides that counties and municipalities may determine, by ordinance, the zoning of machine locations, so long as such local provisions are not less restrictive than those provided under state legislation. The bill also provides for a statewide referendum conducted on November 2, 1999, to determine whether or not video game machine payouts will continue to be allowed in the State. The legislation imposes a one-time surcharge on video poker machines and other such games with a free play feature, funds from which are to be used to defray the cost of conducting the referendum. The House approved an amendment which prohibits anyone under the age of 21 to play machines or receive payouts. The House approved an amendment which provides that machines may be played only with a microprocessing card, or “smart card,” according to regulations promulgated by the Department of Revenue. The House approved an amendment which provides that no more than one licensed establishment may be located at a single address and no more than five machines may be located at the establishment located at an address. The House approved an amendment which provides that each machine must have a warning label affixed to it notifying players that gambling can be addictive, and providing a phone number which may be called for help with gambling addictions. The proceeds from the $400 cost of each warning label must be deposited in a Gambler’s Addiction Fund to provide counseling services. The House approved an amendment to the bill which provides that no municipality or county may limit the number of machines within its limits. The amendment authorizes counties and municipalities to impose, by ordinance, a license fee on machines in an amount not to exceed 30% of the $3,600 license fee imposed by the state. Revenues of this fee produced by a rate in excess of ten percent must be used for law enforcement purposes.
House members were appointed to a Conference Committee to address differences with the Senate on H.3002.
The House concurred in Senate amendments to S.379, which, as amended, provides for the state to issue bonds to fund capital improvements for the state’s public schools, certain state-supported institutions of higher learning, and select state agencies. Upon concurrence in Senate amendments, the bill was ordered enrolled for ratification. When the House last considered the bill, Representatives amended the legislation so as to eliminate the Senate’s provision for funding public school facilities projects through state-issued bonds, and replace the funding mechanism with a “pay as you go” plan under which future state revenues would be committed to the funding of public school building projects. The Senate subsequently amended the legislation so as to restore the language of the State School Facilities Bond Act. The Senate amendments also provided for issuance of additional bonds to fund capital projects at certain state-supported institutions of higher learning, other educational institutions, and select state agencies. The House approved this Senate-amended version which provides that state bonds may be issued under specific terms and conditions, with proceeds to be allocated to school districts, and used by school districts, for permanent school facilities and fixed equipment. The bill also authorizes state capital improvement bonds to be issued and used by specified colleges, technical colleges, universities, and state agencies. The bill sets $750 million as the maximum principal amount of bonds that may be issued for public school facilities, except that this limitation does not apply to any state school facilities bonds issued for the purpose of refunding prior issues of these bonds. The bill states that it is the General Assembly's intent that not more than $250 million of the public school facility bonds will be issued in Fiscal Year 1999-2000. The bill provides that the authority to issue the public school facility bonds expires four years from the effective date of the bill. The payment of the principal and interest on these bonds will be allocated annually by the General Assembly from tax revenues. The bill requires that the public school facility bonds be allocated in the manner and for the purposes provided in the School Facilities Assistance Act (specifically, §59-144-100 and 59-144-30 of the SC Code of Laws,). The bill also authorizes the issuance of over $299 million in state capital improvement bonds to fund projects and equipment at state colleges and universities and other state educational institutions; to pay for school buses and maintenance vehicles for public education, and to fund projects for other state agencies.
The House amended approved and sent to the Senate H.3641, the "South Carolina Development Impact Fee Act," which provides counties and municipalities with an additional source of revenue to address growth issues. The bill authorizes a qualifying county or municipality, under certain conditions, to impose a "development impact fee." As defined in the bill, a "development impact fee" or "impact fee" is a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements. Only a county or municipality which has a comprehensive plan in place may impose an impact fee. Before imposing an impact fee, such a county or municipality must prepare a report estimating the effect of impact fees on the availability of affordable housing. An impact fee may then be imposed through passage of an ordinance by a positive majority of the local governing body. A local government entity begins the process of adopting such an ordinance by directing the appropriate local planning commission (established under current law to undertake a continuing planning program for the growth, development, and redevelopment of the area within its jurisdiction) to conduct studies and recommend an impact fee ordinance. The local planning commission must recommend to the governmental entity a capital improvements plan, which the governmental entity may amend or alter. In general, the capital improvements plan identifies capital improvements for which development impact fees may be used as a funding source. A local government entity’s ordinance authorizing the imposition of an impact fee must: establish a timely procedure for processing applications; include a description of acceptable levels of service for system improvements; and, provide for the termination of the impact fee. The amount of the development impact fee must be based on actual improvement costs or reasonable estimates of such costs supported by engineering studies. A governmental entity imposing an impact fee must publish an annual report describing the amount of all impact fees collected, appropriated, or spent during the preceding year by category of public facility and service area. The bill provides for computation and payment of the impact fees, which may not exceed a proportionate share of the costs incurred by the governmental entity in providing system improvements to serve the new development. The bill also specifies structures and activities which are exempt from impact fees, and provides for administrative appeals, payment under protest, and mediation in the event of disagreement between the developer or fee payor and the governmental entity. The bill limits the use of revenues from impact fees to system improvements within, or for the benefit of, the service area for which the impact fee was imposed; any benefits enjoyed outside the service area must be incidental. The legislation allows a fee payor and developer to enter into an agreement with a governmental entity to provide for payments instead of impact fees for facilities or services. The bill also delineates circumstances under which an impact fee must be refunded, and provides the method for payment of any such refund. The bill also provides for the sharing of funds between the governmental entity and certain other units of government, such as a special purpose district, that have the responsibility of providing the service for which an impact fee may be imposed.
The House approved and enrolled for ratification S.598 which revises the procedure for appeals in the South Carolina judicial system. Currently, all appeals are filed in the Supreme Court, which in turn transfers cases to the Court of Appeals. The bill repeals the current procedures for appeals, and, instead, provides that appeals may be taken in the manner provided by the South Carolina Appellate Court Rules. This bill makes other relevant changes regarding the Court of Appeals; samples of these changes include: requiring the Code Commissioner to note by annotation decisions of the Court of Appeals; requiring the Attorney General to report to the General Assembly cases argued, tried, or conducted by him in the Court of Appeals; designating the Court of Appeals as a court of justice; defining the jurisdiction of the Court of Appeals; changing references in statutes from “the Supreme Court” to “appellate court”; adding references in statutes to the “Court of Appeals”; repealing South Carolina Code of Laws 14-8-540 relating to procedures for appeals to the Court of Appeals; repealing South Carolina Code of Laws 15-37-150 relating to the costs of an appeal to the Supreme Court; and, repealing South Carolina Code of Laws 17-4-90 relating to when the time to appeal commences in certain cases involving indigent persons. The bill does not alter current provisions under which the Supreme Court has exclusive appellate jurisdiction for cases concerning the death penalty, public utility rates, significant constitutional issues, public bond issues, and election issues.
The House amended, approved and sent to the Senate H.3075 which requires the State Law Enforcement Division to develop and maintain a protocol manual to be used by contributing agencies in the administration of the sex offender registry. Currently, information collected for the sex offender registry is open to public inspection. However, an individual must request that a sheriff release information regarding a specific person. H.3075 deletes this requirement and requires the sheriff to provide a listing of the sex offender registry for publication in a newspaper with general circulation within the county. The bill authorizes a sheriff to disclose information regarding persons listed on the sex offender registry so long as the sheriff believes the release of such information will deter criminal activity or enhance public safety. Currently, an individual requesting information contained in the sex offender registry must divulge his or her own name, and provide the name or address of the person or persons about whom the information is sought. Current law allows the information to be disclosed only to the person making the request. H.3075 deletes these provisions.
The House approved and enrolled for ratification S.324. This bill amends South Carolina Code of Laws 33-31-302, relating to the general powers of a nonprofit corporation under the South Carolina Nonprofit Corporation Act of 1994, so as to clarify that a nonprofit corporation may serve as a trustee of a trust in which it has a beneficial interest. This bill further provides that a nonprofit corporate trustee of a trust in which it has a beneficial interest is not conducting a trust business with regard to that trust.
The House approved and sent to the Senate H.3392. This bill amends South Carolina Code of Laws 23-11-110, relating to the qualifications necessary to offer as a candidate for sheriff, so as to provide that service as a coroner for ten years satisfies the same requirement as ten years service as a summary court judge.
The House returned S.509 to the Senate with amendments. This joint resolution provides that an error in the records of the State Retirement System must be corrected within two years its commission, upon written certification of the error. The House approved several amendments to the legislation. The House approved an amendment which lowers from sixty-five to sixty-two the minimum age at which a former member of the General Assembly eligible for retirement benefits may opt to receive those General Assembly retirement benefits while employed in a position covered by either the South Carolina Retirement System or the South Carolina Police Officers’ Retirement System. The House approved an amendment which establishes a State Retirement Study Committee to conduct a comprehensive study of new and existing retirement benefits for all state employees and report its findings to the General Assembly no later than October 15, 1999. The House approved an amendment includes under the South Carolina Police Officers’ Retirement System employees of the Department of Corrections and The Department of Juvenile Justice who serve as peace officers. The House approved an amendment revising the procedure by which a state employee may receive an early retirement allowance.
The House amended, approved and sent to the Senate H.3826. The bill, as amended, provides that it is unlawful to sell, hold for sale, or distribute a package of cigarettes that violates federal law. Penalties are established for failure to comply. In addition to other penalties provided by law, the bill authorizes law enforcement to seize and destroy, or sell to the manufacturer, for export only, any illegal cigarette packages.
The House amended, approved and sent to the Senate S.150 which pertains to special license plates. This bill authorizes the Department of Public Safety to issue a special license plate to a SC resident who is a member of the SC State National Guard. Current law authorizes these special plates for retired members of the SC National Guard. The bill also deletes the requirement that retired members of the SC National Guard must certify Guard membership before being issued a special plate. The bill provides for the design of these special plates, which would include a decal denoting the owner's National Guard branch and status (i.e., retired). The bill also creates a special license plate on behalf of the H.L. Hunley submarine, and provides for the design, fee, distribution, and use of revenue from these special plates. The bill also amends current law concerning motor vehicle registration and license fees by excluding trucks from the special twenty dollar fee set for handicapped persons or persons age sixty-five or older, and by excluding trucks from the twenty-four dollar registration fee which is currently provided for persons under age sixty-five. The bill also adds a section to the SC Code authorizing the Department of Public Safety to issue, under certain conditions, special motor vehicle license plates bearing the name, emblem, or seal of a 501(c)(3) organization. The bill requires a minimum number of prepaid applications which must precede production of the plates and requires a plan to market the plates. The bill prohibits referencing on these plates a college in this state without written authorization from the institution. The bill provides that funds collected from these plates may be used only to defray the costs of the program. Production and distribution guidelines are added to the bill for plates authorized by the General Assembly. The legislation includes provisions addressing "First in Golf," fraternity and sorority, Rotary International, Marine Corps League, Lions Club, and County Veterans Affairs Officers plates.
The House amended, adopted and sent to the Senate H.3416. This concurrent resolution establishes a Purple Heart Highway and provides for erecting appropriate markers as a means of honoring combat-wounded veterans who have received the Purple Heart medal. The resolution requests that the Governor issue a specified proclamation and the resolution provides for an opening ceremony at the State House on George Washington's birthday, in the year 2000, and provides for subsequent ceremonies at the actual placement of signs or markers.