S 1237 General Bill, By Passailaigue
 A Bill to amend Section 12-21-5020, Code of Laws of South Carolina, 1976,
 relating to definitions of the Marijuana and Controlled Substance Tax Act, by
 striking references to the Tax Commission and substituting the Department of
 Revenue and Taxation; to amend Section 12-21-5090, relating to measurement and
 assessment of marijuana and controlled substances, so as to provide for
 measurement and assessment of growing marijuana and dosages of crack cocaine;
 to amend Section 12-21-6030, relating to jeopardy assessments against dealers,
 so as to exempt assessments under the Marijuana and Controlled Substance Tax
 Act from the Taxpayers' Bill of Rights; by adding Sections 12-21-6034,
 12-21-6036, and 12-21-6038 so as to provide for appeals of assessments under
 the Act within twenty days with assessments final and conclusive after that
 time, to authorize the waiver or reduction of the tax, interest, or penalties
 assessed under the Act, and to require law enforcement agencies making
 controlled substance violations arrests to submit copies of the arrest reports
 to the Department of Revenue and Taxation; to amend Section 12-21-6040,
 relating to confidentiality of filings, so as to reduce the criminal penalty;
 to amend Section 12-21-6050, relating to crediting of revenue under the Act,
 so as to

   03/08/94  Senate Introduced and read first time SJ-3
   03/08/94  Senate Referred to Committee on Finance SJ-3

A BILL

TO AMEND SECTION 12-21-5020, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF THE MARIJUANA AND CONTROLLED SUBSTANCE TAX ACT, BY STRIKING REFERENCES TO THE TAX COMMISSION AND SUBSTITUTING THE DEPARTMENT OF REVENUE AND TAXATION; TO AMEND SECTION 12-21-5090, RELATING TO MEASUREMENT AND ASSESSMENT OF MARIJUANA AND CONTROLLED SUBSTANCES, SO AS TO PROVIDE FOR MEASUREMENT AND ASSESSMENT OF GROWING MARIJUANA AND DOSAGES OF CRACK COCAINE; TO AMEND SECTION 12-21-6030, RELATING TO JEOPARDY ASSESSMENTS AGAINST DEALERS, SO TO EXEMPT ASSESSMENTS UNDER THE MARIJUANA AND CONTROLLED SUBSTANCE TAX ACT FROM THE TAXPAYERS' BILL OF RIGHTS; BY ADDING SECTIONS 12-21-6034, 12-21-6036, AND 12-21-6038 SO AS TO PROVIDE FOR APPEALS OF ASSESSMENTS UNDER THE ACT WITHIN TWENTY DAYS WITH ASSESSMENTS FINAL AND CONCLUSIVE AFTER THAT TIME, TO AUTHORIZE THE WAIVER OR REDUCTION OF THE TAX, INTEREST, OR PENALTIES ASSESSED UNDER THE ACT, AND TO REQUIRE LAW ENFORCEMENT AGENCIES MAKING CONTROLLED SUBSTANCE VIOLATIONS ARRESTS TO SUBMIT COPIES OF THE ARREST REPORTS TO THE DEPARTMENT OF REVENUE AND TAXATION; TO AMEND SECTION 12-21-6040, RELATING TO CONFIDENTIALITY OF FILINGS, SO AS TO REDUCE THE CRIMINAL PENALTY; TO AMEND SECTION 12-21-6050, RELATING TO CREDITING OF REVENUE UNDER THE ACT, SO AS TO PROVIDE FOR APPORTIONING OF REVENUES BETWEEN LAW ENFORCEMENT AGENCIES, THE DEPARTMENT OF REVENUE AND TAXATION, AND THE GENERAL FUND OF THE STATE AND PROVIDE FOR THE USE OF THE REVENUES BY LAW ENFORCEMENT AGENCIES; AND TO REPEAL SECTION 12-21-600(B).

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

SECTION 1. Section 12-21-5020(4) of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"(4) `Commission' `Department' means the South Carolina Tax Commission Department of Revenue and Taxation."

SECTION 2. Section 12-21-5090 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-5090. (A) A tax is imposed on marijuana and controlled substances as defined in Section 12-21-5020 at the following rate:

(1) on each gram of marijuana, or portion of a gram, three dollars fifty cents;

(2) on each gram of controlled substance, or portion of a gram, two hundred dollars;

(3) on each fifty dosage units of a controlled substance that is not sold by weight, or portion of fifty dosage units, two thousand dollars.

(B) Marijuana found in a state of growth shall be measured at the rate of one pound per plant or the actual leaf weight, whichever is greater.

(C) Crack cocaine shall be taxed by standard dosage units as determined by the department."

SECTION 3. Section 12-21-6030 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-6030. (A) An assessment for a dealer not possessing valid stamps or other official indicia showing that the tax has been paid is considered a jeopardy assessment or collection, as provided in Article 3 of Chapter 53 of this title.

(B) Assessments made under this article are exempt from the provisions of Article 5 of Chapter 54 of this title, the `South Carolina Taxpayers' Bill of Rights.'"

SECTION 4. Article 25, Chapter 21, Title 12 of the 1976 Code, as added by Act 164 of 1993, is further amended by adding: "Section 12-21-6034. Appeals to assessments must be made within twenty days of the date of payment. Where no appeal is made within the prescribed twenty days, the assessment is final and conclusive. Appeals to assessments made within the prescribed time period are to be heard by the department or an appropriate hearing official. The burden of proof that the tax is not due is upon the dealer. If the dealer elects to petition the circuit court as provided in Section 12-21-2990, the dealer must pay the total amount assessed in full before seeking relief from the tax. The dealer may elect only one of the two options in seeking relief from the tax.

Section 12-21-6036. The department or its duly authorized employees may waive or reduce the tax, interest, or penalty due from assessments made under this article.

Section 12-21-6038. All law enforcement agencies conducting narcotics investigations must submit a copy of any arrest reports pertaining to marijuana or controlled substances, as defined by this act, to the department within seventy-two hours of the time of an arrest."

SECTION 5. Section 12-21-6040(B) of the 1976 Code, as added by Act 164 of 1993, is further amended to read:

"(B) A person who violates this section is guilty of a felony misdemeanor and, upon conviction, must be imprisoned for not more than five two years or fined not more than ten five thousand dollars, or both."

SECTION 6. Section 12-21-6050 of the 1976 Code is amended to read:

"Section 12-21-6050. The commission shall credit the proceeds of the tax levied by this article to the general fund of the State.

(A) The Department of Revenue and Taxation shall credit the proceeds of the tax levied by this article as follows:

(1) seventy-five percent must be remitted to the state or local law enforcement agency that conducted the investigation of the dealer that led to the assessment under this article;

(2) twenty percent must be retained by the Department of Revenue and Taxation; and

(3) five percent to the General Fund of the State.

(B) If more than one state or local law enforcement agency conducted the investigation, the Department of Revenue and Taxation shall determine the equitable pro-rata share for each agency based on the contribution each agency made to the investigation.

(C) Proceeds of the tax must not be used to supplant operating budgets of law enforcement and must be used for narcotics investigations or general law enforcement enhancement."

SECTION 7. Revenues of the Marijuana and Controlled Substance Tax Act credited to the general fund of the State between July 1, 1993, and the effective date of this act must be distributed as provided in Section 12-21-6050 of the 1976 Code as amended by this act.

SECTION 8. Section 12-21-6000(B) is repealed.

SECTION 9. This act takes effect upon approval by the Governor.