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COMMITTEE REPORT
May 12, 2005
H. 3296
Introduced by Reps. Harrell, Wilkins, Leach, Lucas, Bales, G.R. Smith, J.R. Smith, Vaughn, Battle, Cobb-Hunter, Neilson, Clark, Skelton, Kirsh, Moody-Lawrence, Rice, Harrison, Haley, Harvin, Young, Cotty, Mack, J.E. Smith, Taylor, Clemmons, Tripp, Chalk, Breeland, Limehouse, Altman, Bailey, Ballentine, Barfield, Bingham, Ceips, Chellis, Dantzler, Delleney, Duncan, Frye, Hagood, Hardwick, Herbkersman, Hinson, Huggins, Jennings, Littlejohn, Martin, McGee, Norman, Ott, Perry, E.H. Pitts, Scarborough, Sinclair, D.C. Smith, Stewart, Toole, Townsend, Umphlett, Walker, Witherspoon, Brady, Mahaffey and R. Brown
S. Printed 5/12/05--S.
Read the first time April 28, 2005.
To whom was referred a Bill (H. 3296) to amend Section 12-28-1555, as amended, Code of Laws of South Carolina, 1976, relating to the prohibition against the use of dyed motor vehicle fuels, 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, by striking all after the enacting words and inserting:
/ SECTION 1. Section 12-28-1555 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1555. (A) No person may operate or maintain a motor vehicle on a public highway in this State with motor fuel subject to the user fee contained in the fuel supply tank for the motor vehicle that contains dye as provided under Section 12-28-770.
(B) This section does not apply to:
(1) persons operating motor vehicles who have received fuel into their fuel tanks outside of this State in a jurisdiction that permits introduction of dyed motor fuel subject to the user fee of that color and type into the motor fuel tank of highway vehicles; or
(2) users of dyed fuel on the highway which are lawful under the Internal Revenue Code and regulations including state and local government vehicles and buses unless otherwise prohibited by this chapter.
(C) A person who negligently violates this section is subject to a five hundred dollar civil penalty.
(D) A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than three years, or both.
(E) All fines and penalties imposed pursuant to this section must be placed in the State Highway Account of the South Carolina Transportation Infrastructure Bank."
SECTION 2. Section 12-28-2355 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2355. (A) For the purpose of providing funds for inspecting, testing, and analyzing petroleum products and for general state purposes, there must be paid to the department a charge of one-fourth cent a gallon, which liability arises at the same time and is payable by the same person as the motor fuel user fee imposed under this chapter as if the petroleum product were motor fuel subject to the user fee under this chapter. Upon approval of the department, a surety bond is acceptable as monthly prepayments pending monthly reports and payments. Determination of acceptable bonding must be based on distribution, location of terminal facilities, and handling through other bonded suppliers.
(B) In addition to the inspection fee of one-fourth cent a gallon imposed pursuant to subsection (A), an environmental impact fee of one-half cent a gallon is imposed which must be used by the department for the purposes of carrying out the provisions of this chapter. This one-half cent a gallon environmental impact fee must be paid and collected in the same manner that the one-fourth cent a gallon inspection fee is paid and collected, except that the monies generated from these environmental impact fees must be transmitted by the Department of Revenue to the Department of Health and Environmental Control which shall deposit the fees as provided in Section 44-2-40.
(C) Notwithstanding any other provision of law, of the fees collected pursuant to subsection (A) of this section, ten percent must be transmitted by the Department of Revenue to the Department of Agriculture beginning upon the effective date of this act for use as provided in Section 39-41-70 and the remainder of the fees must be credited to the Department of Transportation which must make an annual contribution from non-state tax sources in an amount equivalent to these fees to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule:
Fees General Fund Department of
Collected After of the State Transportation
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 3. Section 12-28-2910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2910. (A) The first eighteen million dollars generated from three cents of the user fee levied in this chapter must be segregated in a separate account for economic development. This account may be expended only upon the authorization of the South Carolina Coordinating Council for Economic Development which shall establish project priorities. Funds devoted to the economic development account must remain in the account if not expended in the previous fiscal year. Annually, funds from the user fee must be deposited to replenish the account to the extent and in an amount necessary to maintain an uncommitted and/or or an unobligated fund balance of eighteen million dollars but not to exceed eighteen million dollars for the ensuing fiscal year, or both. The council may spend no more than two hundred fifty thousand dollars, in the first year only, for a long-term economic development plan which must be submitted to the General Assembly on completion of the plan. The council may spend not more than sixty thousand dollars annually for a state infrastructure model.
(B) All interest earnings on the Economic Development Account must be credited to the State Highway fund.
(C) Notwithstanding any other provision of law, funds must continue to be placed in the account for economic development, but beginning in fiscal year 2005-2006 the payments required pursuant to subsection (A) of this section must decline by six million dollars from the prior year's payment. This annually declining schedule of payments ends in fiscal year 2007-2008, and afterwards all payments shall cease.
(D) Until June 30, 2007, the South Carolina Department of Transportation must make an annual contribution from non-state tax sources to the State Highway Account of the South Carolina Transportation Infrastructure Bank in an amount equivalent to all revenues credited to the South Carolina Department of Transportation as a result of implementation of subsection (C) of this section. Thereafter, the South Carolina Department of Transportation must make an annual contribution from non-state tax sources to the State Highway Account of the South Carolina Transportation Infrastructure Bank in the amount of $18,000,000."
SECTION 4. Section 56-1-50 of the 1976 Code, as last amended by Act 280 of 2004, is further amended by adding at the end:
"(G) The fees collected pursuant to this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 5. Section 56-1-140 of the 1976 Code, as last amended by Act 51 of 2003, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 6. Section 56-1-200 of the 1976 Code, as last amended by Act 497 of 1994, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 7. Section 56-1-390 of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(3) Notwithstanding any other provision of law, the fees collected pursuant to this section that are placed in the general fund pursuant to item (2) of this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 8. Section 56-1-740(B) of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(5) Notwithstanding another provision of laws, the fees collected pursuant to this section and distributed to the general fund pursuant to subsection (B)(3) of this section, must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 9. Section 56-1-2090 of the 1976 Code is amended by adding at the end:
"(E) The fees collected pursuant to this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 10. Section 56-1-3350 of the 1976 Code, as last amended by Act 227 of 2000, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 11. Section 56-3-910(B) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 56-3-910. (B) Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001. The fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Account of the South Carolina Transportation Infrastructure Bank as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund State Highway
Collected After of the State Account of the
South Carolina
Transportation
Infrastructure Bank
June 30, 2005 60 percent 40 percent
June 30, 2006 20 percent 80 percent
June 30, 2007 0 percent 100 percent."
SECTION 12. In the state fiscal year beginning July 1, 2005, the Department of Transportation shall pay into the general fund of the State as its proportionate share of the cost of administration of central service agencies pursuant to the Statewide Cost Allocation Plan the following sums:
(1) Collection of Highway Revenues $2,453,943
(2) Central Service Agency Recoveries 1,498,029
Total Remittance for FY 2005-2006 $3,951,972.
These payments must continue for the three succeeding fiscal years, but the payments required pursuant to item (1) of this section decline by $613,486 from the prior year's payment and the payments required pursuant to item (2) of this section decline $374,507 from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009.
SECTION 13. Article 28, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-2915. Notwithstanding another provision of law, five million dollars of the taxes collected pursuant to Article 1, Chapter 23, Title 12 must be placed in the account for economic development contained in Section 12-28-2910 for fiscal year 2005-2006. This amount shall be: ten million dollars for fiscal year 2006-2007; fifteen million dollars for fiscal year 2007-2008; twenty million dollars for fiscal year 2008-2009; and all taxes collected pursuant to Article 1, Chapter 23, Title 12 for fiscal year 2009-2010, and for all subsequent fiscal years."
SECTION 14. Article 3, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-340. (A) There is added to the motor fuels user fee imposed pursuant to Section 12-28-310 an additional user fee equal to seven cents a gallon to be phased in as provided in subsection (C). For all purposes of imposition, administration, collection, and enforcement, this additional user fee is imposed pursuant to Section 12-28-310.
(B) There is added to the road tax on motor carriers imposed pursuant to Section 56-11-410 an additional road tax equivalent to seven cents a gallon to be phased in as provided in subsection (C). For all purposes of imposition, administration, collection, and enforcement, this additional road tax is imposed pursuant to Section 56-11-410.
(C)(1) For the first twelve months after its imposition, the user fee or road tax will increase by two cents a gallon;
(2) for the second twelve months, after its imposition, the user fee or road tax will increase by an additional one cent a gallon;
(3) for the third twelve months, after its imposition, the user fee or road tax will increase by an additional one cent a gallon;
(4) for the fourth twelve months, after its imposition, the user fee or road tax will increase by an additional one cent a gallon;
(5) for the fifth twelve months, after its imposition, the user fee or road tax will increase by an additional one cent a gallon;
(6) for the sixth twelve months, after its imposition, the user fee or road tax will increase by an additional one cent a gallon;
(D) The additional motor fuels user fee and road tax imposed by this section must be imposed the earlier of December 1, 2006, or at the time after the effective date of this section when the average retail price of regular unleaded gasoline in this State is two dollars or less per gallon as determined by the Budget and Control Board Division of Research using an appropriate measure chosen by the division. Once imposed, the additional motor fuels user fee or road tax shall continue in the manner provide by this section.
(E) Notwithstanding another provision of law providing for the use of motor fuels user fee revenues and road tax on motor carriers' revenues, all revenues of the additional user fee and road tax imposed pursuant to this section must be credited to the State Highway Fund and used by the South Carolina Department of Transportation solely for the maintenance of roads in the state highway system."
SECTION 15. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 16. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 17. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
EXPLANATION OF IMPACT:
Department of Transportation
Agency expenditures will increase to the extent the department receives additional funding. There would be no additional administrative costs associated with managing the fund.
Department of Motor Vehicles
The department indicates there will be a non-recurring internal impact of approximately $184,223 for programming and technology changes to the existing database systems in order to meet the requirement of this bill. This estimate is based on the assumption that DMV would be responsible for the distribution of funds reallocated to the Department of Transportation.
Department of Commerce
The department indicates that the bill would reallocate funds normally administered by the Coordinating Council for Economic Development, but there is no additional impact on the agency resulting from this reallocation.
SPECIAL NOTES:
The Board of Economic Advisors is the appropriate entity to address any revenue impact associated with this or any other bill.
Approved By:
Don Addy
Office of State Budget
REVENUE IMPACT1/
This bill, as amended, would reduce general fund revenue by an estimated $25,181,198 in FY2005-06, $57,564,703 in FY2006-07, $70,248,914 in FY2007-08, $74,253,448 in FY2008-09 and by $86,675,747 in FY2009-10. This bill, as amended, is expected to reduce Department of Commerce (DOC) revenue by an estimated $1,000,000 in FY2005-06, $2,000,000 in FY2006-07 and by $3,000,000 in FY2007-08 while increasing DOC revenue by an estimated $2,000,000 in FY2008-09 and by $12,739,724 in FY2009-10. This bill, as amended, will increase Department of Agriculture revenue by an estimated $802,334 in FY2005-06, $822,799 in FY2006-07, $846,280 in FY2007-08, $870,870 in FY2008-09 and by $893,869 in FY2009-10. This bill, as amended, will increase Department of Transportation (DOT) net revenue by an estimated $89,464,523 in FY2005-06, $157,303,192 in FY2006-07, $207,557,468 in FY2007-08, $245,219,767 in FY2008-09 and by $287,140,222 in FY2009-10. The attached table details the estimated impact that each section of the bill, as amended, would have on the state general fund, DOC, the Department of Agriculture and funds within DOT for state fiscal years between FY2005-06 and FY2009-10.
Explanation of Amendments (May 11, 2005) - By the Senate Finance Committee
The bill, as amended, "strikes and inserts" the entire bill passed by the House of Representatives and instead directs funds that would have been reallocated to a new fund within DOT known as the "State Non-Federal Highway Fund" to DOT's "State Infrastructure Bank". Section 14 of this bill, as amended, would increase the current motor fuel user fee by two cents per gallon the first year and by one cent each year thereafter until the increase reaches 7 cents per gallon over the current 16 cent fee. When fully phased in, the motor fuel user fee will total 23 cents per gallon. Revenue generated from this increase would be dedicated to the DOT's "State Highway Fund". Factoring that the initial two cents per gallon increase would take effect in FY2005-06, DOT State Highway Fund motor fuel revenue will increase by an estimated $64,085,659 in FY2005-06, $98,561,287 in FY2006-07, $135,154,835 in FY2007-08, $173,837,189 in FY2008-09 and by $214,098,068 in FY2009-10. This bill, as amended, also reallocates 10 percent of the $0.0025 per gallon petroleum inspection fee to the Department of Agriculture and directs the remaining balance to DOT's State Infrastructure Bank over a three year period. This amendment increases Department of Agriculture revenue by an estimated $802,334 in FY2005-06, $822,799 in FY2006-07, $846,280 in FY2007-08, $870,870 in FY2008-09 and by $893,869 in FY2009-10. The attached table details the estimated impact that each section of the bill, as amended, would have on the state general fund, DOC, the Department of Agriculture and funds within DOT for state fiscal years between FY2005-06 and FY2009-10. Also attached is a table detailing the estimated impact of the bill as passed by the House of Representatives on April 27, 2005.
Explanation of Amendments (April 26, 2005) - By the House of Representatives
This bill, as amended, reinserts Section 2(C) of the original bill deleted by the House Ways and Means Committee relating to the distribution of the petroleum inspection fee and instead deletes Section 2(D) of the bill which would have transferred environmental inspection fee revenue from the Department of Health and Environmental Control to the Department of Transportation (DOT). Reinserting Section 2(C) of the original bill reduces General Fund revenue by an estimated $3,209,338 in FY2005-06, $4,936,792 in FY2006-07, $6,770,240 in FY2007-08, $7,837,827 in FY2008-09 and by $8,938,690 in FY2009-10 while increasing DOT revenue by the same amounts during those years. This bill, as amended, also adds Section 15 requiring the Board of Economic Advisors to estimate the amount of revenue that would be transferred from the Department of Motor Vehicles (DMV) to DOT under this bill so that the General Assembly may appropriate an amount to DMV sufficient to cover that department's expected revenue loss resulting from the transfer to DOT. DMV would receive revenue equivalent to their FY2004-05 collections to include growth, if any. This amendment also provides that if the General Assembly fails to appropriate an amount sufficient to cover what DMV would have received under current law, the difference in revenue would be retained by DMV and would not be transferred to DOT. The attached table details the estimated impact that each section of the bill, as amended, would have on the state general fund, the Department of Commerce, the Department of Motor Vehicles and the Department of Transportation for state fiscal years between FY2005-06 and FY2009-10.
Explanation of Amendments (April 18, 2005) - By the House Ways and Means Committee
The amended bill deletes language in Section 2(C) and Section 3 of the original bill relating to the petroleum inspection fee and gas user fee respectively. It also makes technical corrections to Section 4 of the bill regarding economic development funds and adds an unnumbered Section that would reallocate, over a five-year period, the electric power tax from the state general fund to the Department of Commerce. The attached table details the estimated impact that each section of the bill, as amended, would have on the state general fund, the Department of Health and Environmental Control, the Department of Commerce, the Department of Motor Vehicles and the Department of Transportation for state fiscal years between FY2005-06 and FY2009-10.
Explanation
This bill would reallocate revenue currently dedicated to the State General Fund, the Department of Health and Environmental Control, the Department of Commerce and/or the Department of Motor Vehicles to the Department of Transportation instead. Reallocated revenue would be directed primarily to a new fund within the Department of Transportation known as the "State Non-Federal Highway Fund". In addition, this bill would reallocate specific revenue currently dedicated to the Department of Transportation's "State Highway Fund" to the new "State Non-Federal Highway Fund" instead. This bill would not raise or lower any current user fees or taxes. The attached table details the estimated impact that each section of the bill would have on the state general fund, the Department of Health and Environmental Control, the Department of Commerce, the Department of Motor Vehicles and the Department of Transportation for state fiscal years between FY2005-06 and FY2009-10.
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 by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND SECTION 12-28-1555, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION AGAINST THE USE OF DYED MOTOR VEHICLE FUELS UNDER CERTAIN CIRCUMSTANCES, AND PENALTIES ASSOCIATED WITH VIOLATIONS OF THIS SECTION, SO AS TO PROVIDE THAT ALL FINES IMPOSED PURSUANT TO THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2355, AS AMENDED, RELATING TO BOTH THE INSPECTION FEE AND THE ENVIRONMENTAL IMPACT FEE CHARGED ON PETROLEUM PRODUCTS, SO AS TO PROVIDE THAT AFTER JUNE 30, 2005, ALL FEES COLLECTED PURSUANT TO THE PROVISIONS CONTAINED IN THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2720, AS AMENDED, RELATING TO THE DISTRIBUTION OF THE GASOLINE USER FEE, SO AS TO PROVIDE THAT THE FEE MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND INSTEAD OF BEING TURNED OVER TO THE DEPARTMENT OF TRANSPORTATION; TO AMEND SECTION 12-28-2910, AS AMENDED, RELATING TO THE FUNDING AND FUNCTIONS OF THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO PROVIDE THAT ITS FUNDING PROVIDED FROM A PORTION OF THE GASOLINE USER FEE SHALL BE ELIMINATED OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-50, AS AMENDED, RELATING TO THE ISSUANCE OF A BEGINNERS PERMIT, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF A BEGINNERS PERMIT MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-140, AS AMENDED, RELATING TO THE ISSUANCE OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-200, AS AMENDED, RELATING TO OBTAINING A DUPLICATE OF A LOST OR DESTROYED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DUPLICATE DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-390, AS AMENDED, RELATING TO THE FEE CHARGED FOR THE REINSTATEMENT OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-740, AS AMENDED, RELATING TO THE SUSPENSION OF A DRIVER'S LICENSE AND THE ISSUANCE OF A SPECIAL RESTRICTED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL RESTRICTED DRIVER'S LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-2090, RELATING TO THE ISSUANCE OF A COMMERCIAL DRIVER LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF COMMERCIAL DRIVER LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-3350, AS AMENDED, RELATING TO THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-3-910, AS AMENDED, RELATING TO THE DISPOSITION OF CERTAIN MOTOR VEHICLE REGISTRATION AND LICENSING FEES, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO REVENUES RECEIVED BY THE DEPARTMENT OF TRANSPORTATION FOR ITS OPERATION, SO AS TO PROVIDE THAT THESE FUNDS MUST BE PLACED IN EITHER THE "STATE HIGHWAY FUND" OR THE "STATE NON-FEDERAL AID HIGHWAY FUND"; AND TO PROVIDE A DECLINING SCHEDULE OF PAYMENTS FOR THE DEPARTMENT OF TRANSPORTATION'S COST OF ADMINISTRATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-28-1555 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1555. (A) No person may operate or maintain a motor vehicle on a public highway in this State with motor fuel subject to the user fee contained in the fuel supply tank for the motor vehicle that contains dye as provided under Section 12-28-770.
(B) This section does not apply to:
(1) persons operating motor vehicles who have received fuel into their fuel tanks outside of this State in a jurisdiction that permits introduction of dyed motor fuel subject to the user fee of that color and type into the motor fuel tank of highway vehicles; or
(2) users of dyed fuel on the highway which are lawful under the Internal Revenue Code and regulations including state and local government vehicles and buses unless otherwise prohibited by this chapter.
(C) A person who negligently violates this section is subject to a five hundred dollar civil penalty.
(D) A person who knowingly violates or knowingly aids and abets another to violate this section is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than three years, or both.
(E) All fines imposed pursuant to this section must be placed in the Department of Transportation State Non-Federal Aid Highway Fund."
SECTION 2. Section 12-28-2355 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2355. (A) For the purpose of providing funds for inspecting, testing, and analyzing petroleum products and for general state purposes, there must be paid to the department a charge of one-fourth cent a gallon, which liability arises at the same time and is payable by the same person as the motor fuel user fee imposed under this chapter as if the petroleum product were motor fuel subject to the user fee under this chapter. Upon approval of the department, a surety bond is acceptable as monthly prepayments pending monthly reports and payments. Determination of acceptable bonding must be based on distribution, location of terminal facilities, and handling through other bonded suppliers.
(B) In addition to the inspection fee of one-fourth cent a gallon imposed pursuant to subsection (A), an environmental impact fee of one-half cent a gallon is imposed which must be used by the department for the purposes of carrying out the provisions of this chapter. This one-half cent a gallon environmental impact fee must be paid and collected in the same manner that the one-fourth cent a gallon inspection fee is paid and collected, except that the monies generated from these environmental impact fees must be transmitted by the Department of Revenue to the Department of Health and Environmental Control which shall deposit the fees as provided in Section 44-2-40.
(C) Notwithstanding another provision of law, the fees collected pursuant to subsection (A) of this section must be credited to the Department of Transportation State Non-Federal Aid Highway fund as provided in the following schedule:
Fees General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 3. Section 12-28-2910 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-2910. (A) The first eighteen million dollars generated from three cents of the user fee levied in this chapter must be segregated in a separate account for economic development. This account may be expended only upon the authorization of the South Carolina Coordinating Council for Economic Development which shall establish project priorities. Funds devoted to the economic development account must remain in the account if not expended in the previous fiscal year. Annually, funds from the user fee must be deposited to replenish the account to the extent and in an amount necessary to maintain an uncommitted and/or or an unobligated fund balance of eighteen million dollars but not to exceed eighteen million dollars for the ensuing fiscal year, or both. The council may spend no more than two hundred fifty thousand dollars, in the first year only, for a long-term economic development plan which must be submitted to the General Assembly on completion of the plan. The council may spend not more than sixty thousand dollars annually for a state infrastructure model.
(B) All interest earnings on the Economic Development Account must be credited to the State Highway fund.
(C) Notwithstanding another provision of law, funds must continue to be placed in the account for economic development for the five succeeding fiscal years, beginning in fiscal year 2005-2006 but the payments required pursuant to subsection (A) of this section decline by three million six hundred thousand dollars from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009, and afterwards all payments shall cease."
SECTION 4. Section 56-1-50 of the 1976 Code, as last amended by Act 280 of 2004, is further amended by adding at the end:
"(G) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 5. Section 56-1-140 of the 1976 Code, as last amended by Act 51 of 2003, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 6. Section 56-1-200 of the 1976 Code, as last amended by Act 497 of 1994, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 7. Section 56-1-390 of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(3) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 8. Section 56-1-740(B) of the 1976 Code, as last amended by Act 79 of 2001, is further amended by adding at the end:
"(5) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 9. Section 56-1-2090 of the 1976 Code is amended by adding at the end:
"(E) The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 10. Section 56-1-3350 of the 1976 Code, as last amended by Act 227 of 2000, is further amended by adding at the end:
"The fees collected pursuant to this section must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 11. Section 56-3-910(B) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 56-3-910. (B) Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001. The fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the Department of Transportation State Non-Federal Aid Highway Fund as provided in the following schedule based on the actual date of receipt by the Department of Motor Vehicles:
Fees and Penalties General Fund Department of
Collected After of the State Transportation
State Non-Federal Aid
Highway Fund
June 30, 2005 60 percent 40 percent
June 30, 2006 40 percent 60 percent
June 30, 2007 20 percent 80 percent
June 30, 2008 10 percent 90 percent
June 30, 2009 0 percent 100 percent"
SECTION 12. Section 57-11-20(A) of the 1976 Code, as last amended by Act 461 of 1996, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be known as either the 'state highway fund State Highway Fund' or the State 'Non-Federal Aid Highway Fund' and all federal revenues and federal monies must be deposited into the "federal aid highway fund". These Both funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest income from the state highway fund must be deposited to the credit of the state highway fund. Interest income from the non-federal aid highway fund must be deposited to the credit of the non-federal aid highway fund. The commission may commit up to the maximum annual debt service provided in Article X, Section 13 of the South Carolina Constitution into a special fund to be used for the sole purpose of paying the principal and interest, as it comes due, on bonds issued for the construction and/or maintenance of state highways, or both. This special account will be designated as the State Highway Construction Debt Service Fund."
SECTION 13. In the state fiscal year beginning July 1, 2005, the Department of Transportation shall pay into the general fund of the State as its proportionate share of the cost of administration of central service agencies pursuant to the Statewide Cost Allocation Plan the following sums:
(1) Collection of Highway Revenues $2,453,943
(2) Central Service Agency Recoveries 1,498,029
Total Remittance for FY 2005-2006 $3,951,972.
These payments must continue for the three succeeding fiscal years, but the payments required pursuant to item (1) of this section decline by $613,486 from the prior year's payment and the payments required pursuant to item (2) of this section decline $374,507 from the prior year's payment. This annually declining schedule of payments ends after June 30, 2009.
SECTION 14. Article 28, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-2915. Notwithstanding another provision of law, five million dollars of the taxes collected pursuant to Article 1, Chapter 23, Title 12 must be placed in the account for economic development contained in Section 12-28-2910 for fiscal year 2005-2006. This amount shall be: ten million dollars for fiscal year 2006-2007; fifteen million dollars for fiscal year 2007-2008; twenty million dollars for fiscal year 2008-2009; and all taxes collected pursuant to Article 1, Chapter 23, Title 12 for fiscal year 2009-2010, and for all subsequent fiscal years."
SECTION 15. Article 3, Chapter 3, Title 56 of the 1976 Code is amended by adding:
"Section 56-3-205. The Board of Economic Advisors annually shall estimate and provide to the General Assembly the amount of fees and fines that would have been retained by the Department of Motor Vehicles pursuant to the provisions of Sections 56-1-200, 56-1-390, and 56-1-740 pursuant to the provisions of those sections as they applied for fiscal year 2004-2005. The General Assembly shall appropriate in the Annual General Appropriations Act additional funds to the Department of Motor Vehicles sufficient to equal the difference in the estimate of the Board of Economic Advisors and the amount actually scheduled to be retained by the department pursuant to those sections. To the extent the amount annually appropriated is less than the amount required to be appropriated pursuant to this section, then funds otherwise scheduled to be transferred to the Department of Transportation State Non-Federal Aid Highway Fund pursuant to Sections 56-1-200, 56-1-390, and 56-1-740 are reduced by amounts sufficient to make up the difference and this difference may be retained by the Department of Motor Vehicles for its operations."
SECTION 16. This act takes effect upon approval by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:22 P.M.