Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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| Printed Page 3300, Mar. 10 | Printed Page 3320, Mar. 10 |

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(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the county.

SUBSECTION 3. Beginning with municipal government spending for fiscal year 1995-96, total spending by a municipal government in a fiscal year may not exceed total municipal government spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor Statistics of the United States Department of Labor. Total spending by a municipal government for purposes of this limitation is the total of a municipal government spending in a fiscal year from all sources of funds and for all purposes, but total municipal government spending does not include:

(1) spending in an amount not exceeding the amount represented by applying the municipality's tax millage for the most recently completed property tax year to the assessed value of new construction and improvements to existing property not previously taxed;

(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;

(3) spending of funds derived from state or federal sources and spending of local sales and use tax revenues distributed to the municipality pursuant to Chapter 10, Title 4 of the 1976 Code;

(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the municipality.

SUBSECTION 4. Beginning with special purpose or public service district spending for fiscal year 1995-96, total spending by a special purpose or public service district in a fiscal year may not exceed total special purpose or public service district spending in the prior fiscal year by more than the percentage increase in the consumer price index in the twelve months ending December 31 preceding the fiscal year as determined by the Bureau of Labor Statistics of the United States Department of Labor. Total spending by a special purpose or public service district for purposes of this limitation is the total of special purpose


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or public service district spending in a fiscal year from all sources of funds and for all purposes, but does not include:

(1) spending in an amount not exceeding the amount represented by applying the district's tax millage for the most recently completed property tax year to the assessed value of new construction and improvements to existing property not previously taxed;

(2) spending of fee revenues generated by income-producing services first extended to customers in the current fiscal year;

(3) spending of funds derived from state or federal sources;

(4) a capital expenditure financed without borrowing using funds derived from any source other than county property taxes;

(5) spending for debt service;

(6) spending to offset a prior year deficit; and

(7) spending approved by at least a two-thirds vote of the governing body of the district.

SUBSECTION 5. Beginning with school district ad valorem tax revenues for operating purposes for school year 1995-96, total revenues of a school district from ad valorem taxes levied for operating purposes for a school year may not exceed the total of such revenues in the prior school year by more than the Education Finance Act inflation factor applicable for the current school year. However, the limitation on revenues imposed by this section does not apply to:

(1) ad valorem tax revenues in an amount represented by applying the school district's tax millage for the most recently completed tax year to the assessed value of new construction and improvements to existing property in the district not previously taxed;

(2) ad valorem tax revenues for debt service;

(3) ad valorem tax revenues to offset a prior year deficit; and

(4) revenues of additional ad valorem taxes approved by at least a two-third's vote of the governing body authorized by law to levy school tax millage in the school district.

If the limit on revenue increases allowed by this section is insufficient to permit a school district to meet the maintenance of effort requirement of Section 59-21-1030 of the 1976 Code, then additional revenues may be raised by ad valorem taxes sufficient to meet this requirement.

SUBSECTION 6. Any bill or joint resolution enacted after June 30, 1994, by the General Assembly requiring a county, municipality, school district, special purpose or public service district to spend funds or to take an action requiring the expenditure of funds must provide adequate funding to these entities sufficient to offset the costs incurred or expenditures required.


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The State Budget Division after a bill or joint resolution is enacted into law shall prepare and affix to it a statement of its estimated fiscal impact on the political subdivisions referred to above, whether or not the bill or joint resolution requires the entity to expend funds, and whether or not the General Assembly has provided sufficient funding to offset the costs incurred or expenditures required.

SUBSECTION 7. An unfunded mandate prohibited by Subsection 6 shall include any legislation in which the fiscal impact statement prepared pursuant to Subsection 6 determines that an increase of more than one percent is required in the total operating budget of a particular political subdivision in its most recent fiscal year which the State has not funded. Any such fiscal impact statement on legislation which states that an increase of one percent or less of the total operating budget of the political subdivision's most recent fiscal year is required shall not be deemed an unfunded mandate. If the General Assembly fails to provide the required funding as provided in Subsection 6, then the applicable spending limitations under Subsections 2, 3, 4, and 5 of this section do not apply with regard to the funds necessary to comply with state law for that particular purpose. An unfunded mandate also shall not include any existing state law that provides for shared allocation of funding from state and local government sources.

SUBSECTION 8. (A) Section 12-43-210(B) of the 1976 Code, as last amended by Act 381 of 1988, is further amended to read:

"(B)(1) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year.The department shall divide counties into five groups for purposes of assigning dates for counties to implement countywide reassessment programs. Each county shall implement a countywide reassessment program as scheduled by the department. Additionally, each county shall implement a countywide reassessment program at least every fifth year after the initial reassessment year scheduled by the department.

(2) The countywide reassessment program required by this section applies to all real property in a county, including manufacturing real property.

(3) If the department determines that a county has failed to meet the reassessment requirements of this section, it shall notify the State Treasurer in writing, who shall withhold twenty percent of distributions due the county pursuant to Chapter 27 of Title 6, the State Aid to Subdivisions Act, until the department determines that the county has complied. When the department determines that the county has complied,


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it shall notify the State Treasurer who then shall release the withheld funds. A county may appeal a determination of noncompliance to the department and if aggrieved by the department's determination, a county may further appeal in the manner provided by law for appeals from a final determination by the department."

(B) Initial reassessment years pursuant to the provision of Section 12-43-210(B) of the 1976 Code, as amended by this act, are as follows:

County Group Year of Reassessment

1 1997

2 1998

3 1999

4 2000

5 2001.

SUBSECTION 9. The penultimate paragraph of Section 12-37-930 of the 1976 Code is amended to read:

"In no event should the The original cost must not be reduced more than eighty percent for property tax years before 1995. For property tax year 1995 and thereafter, original cost must not be reduced below the amounts provided in the following schedule:

1995 nineteen percent

1996 eighteen percent

1997 seventeen percent

1998 sixteen percent

1999 fifteen percent

2000 fourteen percent

2001 thirteen percent

2002 twelve percent

2003 eleven percent

After 2003 ten percent.

In the year of acquisition, depreciation shall be is allowed as if the property were owned for the full year. The term `original cost' shall mean means gross capitalized cost as shown by the taxpayer's records for income tax purposes."/

SUBSECTION 10. If the provisions of Section 12-37-257 of the 1976 Code as added by this section are declared unconstitutional, unlawful, or otherwise void by a court of competent jurisdiction, then the provisions of the spending and revenue limitations imposed by Subsections 2, 3, 4, and 5 are of no effect.

SUBSECTION 11. Subsection 8 of this section takes effect January 1, 1995, and applies for property tax years beginning after 1994. The


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remaining subsections of this section take effect upon approval by the Governor./

Renumber sections & amend totals/title to conform.

Rep. BAKER explained the amendment.

POINT OF ORDER

Rep. RUDNICK raised the Point of Order that Amendment No. 292 was out of order as it was not germane in that there was a previous amendment ruled out of order similar to this one. She further stated that it had the same concept as the previous amendment and had to do with property taxes and homestead exemptions not tied in to the Appropriations Bill.

The SPEAKER stated that the previous amendment dealt with the ratio and not the homestead exemption and on page 490, Section 1, there was $16,900,000 for this homestead exemption reimbursement and he overruled the Point of Order.

Rep. BAKER continued speaking.

POINT OF ORDER

Rep. WAITES raised the Point of Order that Amendment No. 292 was out of order as it was not in compliance with Section 6-27-50 which states that no section of this chapter may be amended or repealed except in separate legislation solely for that purpose. She further stated that Section 3 on page 15 of the amendment basically said that if a county failed to reassess in a timely fashion, the distributions made pursuant to Section 6-27-40 was delayed and that would impact on Section 6-27-50.

The SPEAKER sustained the Point of Order and ruled the amendment out of order.

Rep. GONZALES proposed the following Amendment No. 296 (Doc Name L:\council\legis\amend\JIC\5757HTC.94), which was ruled out of order.

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding a new SECTION, appropriately numbered, to read:

/SECTION ___

TO AMEND THE 1976 CODE BY ADDING SECTION 56-5-932 SO AS TO REQUIRE THE DEPARTMENT OF TRANSPORTATION TO ESTABLISH A POLICY ON THE INSTALLATION AND MAINTENANCE OF TRAFFIC SIGNALS AND MARKINGS THAT
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DOES NOT ALLOW FOR DIFFERENTIATION BASED ON THE NATURE OF THE JURISDICTION IN WHICH THE SIGNAL OR MARKING IS LOCATED.

Article 7, Chapter 5, Title 56 of the 1976 Code is amended by adding:

"Section 56-5-932. The department shall establish and implement by January 1, 1995, a policy on the installation and maintenance of traffic signals and markings that does not allow for differentiation based on the nature of the jurisdiction in which the signal or marking is located."/

Amend title/totals, renumber sections to conform.

Rep. GONZALES explained the amendment.

POINT OF ORDER

Rep. FARR raised the Point of Order that Amendment No. 296 was out of order as it did not relate to a line item.

Rep. GONZALES argued contra the Point in stating that it directed them to develop a uniform policy for expenditure of the money in the budget of the Department of Transportation pertaining to maintenance.

The SPEAKER stated that it did not say that and it was not germane and he sustained the Point of Order and ruled the amendment out of order.

Rep. WHITE proposed the following Amendment No. 327 (Doc Name L:\council\legis\amend\CYY\15877AC.94), which was adopted.

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

/SECTION ___

TO AMEND THE 1976 CODE BY ADDING TITLE 44, CHAPTER 39 SO AS TO CREATE THE DIABETES INITIATIVE OF SOUTH CAROLINA BOARD AND TO PROVIDE FOR ITS PURPOSE AND DUTIES; TO ESTABLISH A DIABETES CENTER OF EXCELLENCE AT THE MEDICAL UNIVERSITY OF SOUTH CAROLINA AND AT THE UNIVERSITY OF SOUTH CAROLINA; AND TO ESTABLISH THE DIABETES OUTREACH COUNCIL AND TO PROVIDE FOR ITS POWERS, DUTIES, AND FUNCTIONS.

A. Title 44 of the 1976 Code is amended by adding:

"CHAPTER 39

Diabetes Initiative of South Carolina

Section 44-39-10. This act may be cited as the `Diabetes Initiative of South Carolina Act'.

Section 44-39-20. (A) There is established within the Medical University of South Carolina the Diabetes Initiative of South Carolina


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Board. The purpose of this board is to establish a statewide program of education, surveillance, clinical research, and translation of new diabetes treatment methods to serve the needs of South Carolina residents with diabetes mellitus. The provisions of this chapter and the initiatives undertaken by the board supplement and do not supplant existing programs and services provided to this population.

(B) The board consists of:

(1) the following officials or their designees;

(a) the President of the Medical University of South Carolina;

(b) the President of the University of South Carolina;

(c) the Director of the Department of Health and Environmental Control;

(d) the Director of the State Department of Health and Human Services;

(e) the President of the South Carolina Medical Association;

(f) the President of the South Carolina Affiliate of the American Diabetes Association;

(g) the President of the American Association of Diabetes Educators;

(h) the President of the South Carolina Academy of Family Physicians;

(i) the head of the Office of Minority Health in the Department of Health and Environmental Control;

(j) Governor of South Carolina Chapter of the American College of Physicians;

(2) a representative of the Governor's office, to be appointed by the Governor;

(3) a member of the Joint Legislative Committee on Health Care Planning and Oversight, to be appointed by the chairman;

(4) four representatives appointed by the President of the Medical University of South Carolina for terms of four years, two of whom must be from the general public and one each from the Centers of Excellence Advisory Committees, all of whom must be persons knowledgeable about diabetes and its complications and whose term of office is four years.

(C) A vacancy on the board must be filled for the remainder of the unexpired term in the manner of original appointment.

(D) The board shall elect from its members a chair for a term of two years.

(E) The board shall meet at least quarterly or more frequently upon the call of the chairman. Members of the board not employed by the State or its political subdivisions shall receive per diem, subsistence, and mileage


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as provided by law for members of state boards, commissions, and committees while engaged in the work of the board.

Section 44-39-30. The powers and duties of the Diabetes Initiative of South Carolina Board are to:

(1) annually assess the effects of diabetes mellitus in South Carolina, and the status of education, clinical research, and translation of new diabetes treatment methods in South Carolina;

(2) oversee all operations of the Center of Excellence Advisory Committees, and the Diabetes Outreach Council including:

(a) reviewing annual reports;

(b) establishing annual budgets;

(c) setting annual priorities;

(3) make annual budget requests to the General Assembly to support the activities of the Diabetes Initiative of South Carolina Board;

(4) conduct diabetes surveillance activities including:

(a) obtaining data and maintaining a statewide data base

(b) analyzing data and reviewing trends on mortality and morbidity in diabetes;

(c) developing means to and disseminating important data to professionals and the public;

(d) developing proposals for grant funding.

(5) submit an annual report to the Governor and the General Assembly;

(6) other activities necessary to carry out the provisions of this chapter.

Section 44-39-40. (A) A Diabetes Center of Excellence is established at the Medical University of South Carolina and at the University of South Carolina. These centers shall develop and implement programs of professional education, specialized care, and clinical research in diabetes and its complications, in accordance with priorities established by the Diabetes Initiative of South Carolina Board. Each Center of Excellence must submit an annual report to the Diabetes Initiative of South Carolina Board.

(B) The activities of each center must be overseen and directed by a Center of Excellence Advisory Committee. Each council consists of members appointed by the president of the university within which the center is housed. The functions of the council include:

(1) reviewing programs in professional education, specialized care, and clinical research developed by the Centers;

(2) assisting in the development of proposals for grant funding for the center's activities;


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(3) preparing an annual report and budget proposal for submission to the Diabetes Initiative of South Carolina Board.

Section 44-39-50. (A) There is created in the Medical University of South Carolina the Diabetes Outreach Council with three members appointed by the president of the university.

(B) The Diabetes Outreach Council shall oversee and direct efforts in patient education and primary care including:

(1) promoting adherence to national standards of education and care;

(2) ongoing assessment of patient care costs and reimbursement issues for persons with diabetes in South Carolina;

(3) preparing an annual report and budget proposal for submission to the Diabetes Initiative of South Carolina Board."

B. This section takes effect July 1, 1994./

Renumber sections & amend totals/title to conform.

Rep. WHITE explained the amendment.

The amendment was then adopted.

Reps. WOFFORD, H. BROWN, LAW, R. YOUNG and WILLIAMS proposed the following Amendment No. 330 (Doc Name L:\council\legis\amend\PT\1105DW.94), which was adopted.

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered section to read:

/SECTION ___

TO CHANGE THE PROJECTS IDENTIFIED IN THE SENIOR CITIZENS CENTER SURVEY PUBLISHED BY THE COMMISSION ON AGING IN OCTOBER, 1989, AND UPDATED AUGUST 1, 1990, AND REFERENCED IN SUBSECTION (B)(1) OF SECTION 32, PART II, ACT 171 OF 1991, BY CREATING PRIORITY NUMBERS 2 AND 2A FOR FUNDING WITH STATE MONIES AS THE SENIOR CENTERS IN MONCKS CORNER AND GOOSE CREEK LOCATED IN BERKELEY COUNTY, BOTH PROJECTS FOR PLAN YEAR 1991-92 AND TO AUTHORIZE THE EXPENDITURE OF UP TO ONE THOUSAND DOLLARS BY THE OFFICE OF THE GOVERNOR, DIVISION OF AGING, IN ADMINISTERING THE REDESIGNATION OF PRIORITIES.

A. The project identified in the Senior Citizens Survey published by the Commission on Aging in October, 1989, updated August, 1990, and referenced in Subsection (B)(1) of Section 32, Part II, Act 171 of 1991, is changed to replace Priority Number 2 which was a Senior Center located in Berkeley County, with state funds of $300,000. The two new


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projects are a Senior Center located in Moncks Corner in Berkeley County with state funds of $104,000 and is designated as Priority Number 2 and a Senior Center in Goose Creek located in Berkeley County with state funds of $196,000 and is designated as Priority Number 2A, both projects for Plan Year 1991-92.

B. In administering the funds referenced in paragraph A. of this section, the Office of the Governor, Division of Aging, is authorized to expend from funds appropriated for other operating expenses Section 6-C, line 11 such sums as may be necessary, not to exceed $1,000 from sums otherwise appropriated to facilitate the redesignation of priorities provided for in paragraph A./

Renumber sections & amend totals/title to conform.

Rep. WOFFORD explained the amendment.

The amendment was then adopted.

Reps. McLEOD and KIRSH proposed the following Amendment No. 331 (Doc Name L:\council\legis\amend\JIC\5767HTC.94), which was adopted.

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding a new SECTION, appropriately numbered, to read:

/SECTION ___

TO AMEND THE 1976 CODE BY ADDING SECTION 57-11-22 SO AS TO PROVIDE THAT ALL REVENUES OF THE DEPARTMENT OF TRANSPORTATION, NOT INCLUDING GASOLINE AND OTHER MOTOR FUELS TAXES AND FEDERAL FUNDS, MUST BE REMITTED TO THE STATE TREASURER AND DEPOSITED TO THE CREDIT OF THE GENERAL FUND OF THE STATE.

Article 1, Chapter 11, Title 57 of the 1976 Code is amended by adding:

"Section 57-11-22. Notwithstanding any other provision of law and effective July 1, 1994, all revenues of the Department of Transportation, not including gasoline and motor fuels tax revenues and federal funds allocated to the department, must be remitted to the State Treasurer and deposited to the credit of the general fund of the State."/

Renumber sections & amend totals/title to conform.

Rep. McLEOD explained the amendment.

The amendment was then adopted.


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