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COMMITTEE REPORT
April 25, 2000
S. 1078
S. Printed 4/25/00--H. [SEC 4/26/00 2:30 PM]
Read the first time February 24, 2000.
To whom was referred a Bill (S. 1078), to amend Chapter 33, Title 46, Code of Laws of South Carolina, 1976, relating to shipment and sale of trees, plants, and shrubs, by adding Section 46-33-90, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, Section 46-33-90(A)(4), as contained in SECTION 1, page 1, line 39, by striking item (4) in its entirety and inserting :
/ (4) 'Registered nursery dealer' means any person other than a grower of nursery stock who buys certified nursery stock for resale with annual sales of five thousand dollars or more, and any nurseryman who operates a sales lot separately from his nursery with annual sales of five thousand dollars or more. Registered and unregistered nursery dealers are required to produce sales records to agents of the commission upon request. /
When amended, Section 46-33-90(A) shall read:
/ (4) 'Registered nursery dealer' means any person other than a grower of nursery stock who buys certified nursery stock for resale with annual sales of five thousand dollars or more, and any nurseryman who operates a sales lot separately from his nursery with annual sales of five thousand dollars or more. Registered and unregistered nursery dealers are required to produce sales records to agents of the commission upon request. /
Amend the bill further, as and if amended, Section 46-33-90(A)(5), as contained in SECTION 1, page 2, line 1, by striking item (5) in its entirety and inserting:
/ (5) 'Hobbyist' and 'backyard gardener' mean any person selling nursery stock who has less than five thousand dollars in gross sales per calendar year. Hobbyist and backyard gardeners are required to produce sales records to agents of the commission upon request. Hobbyist and backyard gardeners are exempt from registration. /
When amended, Section 46-33-90(A)(5) shall read:
/ (5) 'Hobbyists' and 'backyard gardener' means any person selling nursery stock who has less than five thousand dollars in gross sales per calendar year. Hobbyists and backyard gardeners are required to produce sales records to agents of the commission upon request. Hobbyists and backyard gardeners are exempt from registration. /
Amend the bill further, as and if amended, Section 46-33-90(C)(2)(b), as contained in SECTION 1, page 2, line 31, by striking item (b) in its entirety.
When amended, Section 46-33-90(c)(2) shall read:
/ (2) Subject to the provisions of subparagraph (F), the following annual fee schedule is in effect:
(a)Nursery registration fees:
( i) ten acres or less $ 75.00
( ii) greenhouses with less than
six thousand square feet $ 75.00
(iii) eleven to twenty-five
acres $125.00
( iv) greenhouses with six thousand
to thirty thousand square
feet $125.00
( v) more than twenty-five
acres $200.00
( vi) greenhouses with more than
thirty thousand square feet $200.00/
Amend the bill further, as and if amended, Section 46-33-90(E), as contained in SECTION 1, page 2, line 40, by striking subparagraph (E) in its entirety and inserting:
/ (E) Governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock are exempt from the payment of fees and registration required by this section; however, governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock are subject to all commission rules and regulations. The Forestry Commission is exempt from paying fees required by this section. All persons selling Christmas trees from November to January who are not otherwise required by this section to either register or pay the fees are exempt from registering and paying the fees. /
When amended, Section 46-33-90(E) shall read:
/(E) Governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock are exempt from the payment of fees and registration required by this section; however, governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock are subject to all commission rules and regulations. The Forestry Commission is exempt from paying fees required by this section. All persons selling Christmas trees from November to January who are not otherwise required by this section to either register or pay the fees are exempt from registering and paying the fees. /
Renumber sections to conform.
Amend totals and title to conform.
CHARLES R. SHARPE, for Committee.
EXPLANATION OF IMPACT:
The Division of Regulatory and Public Services at Clemson University reports that this program would require two Regulatory Specialist positions at an annual cost of $72,000 (including fringe benefits) and annual operating expenses of $20,000 for supplies and travel. An additional one-time expense of $35,000 for two vehicles, two computers and office furniture is also needed. However, the division notes that registration fees collected by this program would offset annual operating costs.
SPECIAL NOTES:
Pursuant to Section 2-7-71, 2-7-76 or 2-7-110 of the 1976 South Carolina Code of Laws, the Board of Economic Advisors is the appropriate agency to address any revenue impact of this legislation.
Approved By:
Don Addy
Office of State Budget
REVENUE IMPACT1
This bill, as further amended, is expected to increase earmarked revenues allocated to the Clemson Public Service Authority (PSA) by $48,200 in FY 2000-01.
Explanation
This bill creates a graduated scale of annual registration fees for certain nurseries in this State, which sell or distribute nursery stock. Fees would range from $75 to $200 based upon production levels for either the aggregate number of acres or square footage of greenhouses and, in certain cases, a combination of the two measures. The State Crop Pest Commission within the Clemson University Public Service Authority would retain all proceeds.
The bill, as amended, deletes an annual nursery dealer fee at $50 for each location and requires "hobbyists" and "back yard gardeners" to produce sales records upon request. Also, a "registered nursery dealer" is defined as a nursery stock grower or nurseryman with sales of $5,000 or more as specified. Based on 1999 statistics provided by the Clemson PSA for 577 nurseries and 983 nursery dealers, the BEA estimates this bill, as amended, will generate a total of $48,200 in FY 2000-01. Accordingly, this bill would increase the Clemson PSA earmarked revenues by $48,200 in FY 2000-01.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND CHAPTER 33, TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SHIPMENT AND SALE OF TREES, PLANTS, AND SHRUBS, BY ADDING SECTION 46-33-90, SO AS PROVIDE FOR NURSERY AND NURSERY DEALER REGISTRATION, PAYMENT OF REGISTRATION FEES ON A GRADUATED SCALE, EXEMPTIONS FROM PAYMENT OF FEES FOR CERTAIN GROWERS, ORGANIZATIONS, HOBBYISTS, AND BACK YARD GARDENERS, AND TO PROVIDE FOR INCREASES IN THE AMOUNT OF REGISTRATION FEES REQUIRED BY THIS SECTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 33, Title 46 of the 1976 Code is amended by adding:
"Section 46-33-90. (A) For purposes of this section:
(1) 'Nursery' means any place where nursery stock is grown for sale.
(2) 'Nursery stock' means all fruit, nut, and shade trees, all ornamental plants and trees, bush fruits, buds, grafts, scions, vines, roots, bulbs, seedlings, slips, or other portions of plants (excluding true seeds) grown or kept for propagation, sale, or distribution.
(3) 'Nurseryman' means a person who operates a nursery for the production of nursery stock.
(4) 'Nursery dealer' means any person other than a grower of nursery stock who buys certified nursery stock for resale, and any nurseryman who also operates a sales lot separately from his nursery.
(5) 'Hobbyist' and 'back yard gardener' mean any person selling nursery stock from a growing area of four hundred square feet or less.
(B) All persons engaged in sale or distribution of nursery stock must register with the commission and pay the fees required by this section. The commission is authorized to collect and retain fees from nursery inspection and registration, nursery dealer registration, plant pest inspection, and all other plant pest certification activities.
(C)(1) Nursery registration fees shall be on a graduated scale and may not exceed two hundred dollars per year. All registration certificates expire on September 30 and are renewable on or before October 1 annually. In cases where nursery stock is grown at more than one location by one nursery, the fees shall be based upon the nursery's aggregate number of acres in production of the nursery. In cases where the nursery consists of a combination of greenhouses and acreage, a single license fee must be assessed at the higher rate of the two categories.
(2) Subject to the provisions of subparagraph (F), the following annual fee schedule is in effect:
(a) Nursery registration fees:
(i) ten acres or less $ 75.00
(ii) greenhouses with less than
six thousand square feet $ 75.00
(iii) eleven to twenty-five acres $125.00
(iv) greenhouses with six thousand
to thirty thousand square feet $125.00
(v) more than twenty-five acres $200.00
(vi) greenhouses with more than
thirty thousand square feet $200.00
(b) Nursery dealer registration fees:
one location $ 50.00
(D) Growers who produce transplants or seedlings grown solely for the purpose of being distributed for production of agricultural commodities must register with the commission but are exempt from nursery registration fees. No ornamental bedding plants or nursery stock may be grown in conjunction with exempt agricultural transplants unless the fees required by this section are paid.
(E) Governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock from the payment of fees required by this section are exempt; however, governmental and nonprofit organizations which are not in the business of commercial sale of nursery stock must register with the commission and are subject to all commission rules and regulations. Hobbyists, back yard gardeners, and the Forestry Commission must be registered but are exempt from paying registration fees required by this section. All persons selling Christmas trees from November to January who are not otherwise required by this section to either register or pay the fees are exempt from the fees and registration.
(F) The commission may increase the nursery registration fees required by this section to an amount not to exceed three hundred dollars per year and may increase the nursery dealer registration fee up to seventy-five dollars per location."
SECTION 2. This act takes effect upon approval by the Governor.
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