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1 Indicates Matter Stricken 2 Indicates New Matter 3 4 FREE CONFERENCE COMMITTEE REPORT ADOPTED 5 -- NOT PRINTED 6 May 9, 2017 7 8 H. 3516 9 10 Introduced by Reps. Simrill, Lucas, White, G.M. Smith, 11 Pope, Stringer, W. Newton, Bales, Clary, Cole, Delleney, 12 Herbkersman, Hixon, Sandifer, Douglas, Knight, Erickson, 13 Henegan, Ridgeway, Williams, Jefferson, Ott, Govan, 14 Henderson, V.S. Moss, Martin, Spires, Funderburk, 15 D.C. Moss, Brown, Whipper, CobbHunter, Felder, Bernstein, 16 J.E. Smith, Clemmons, Clyburn, Daning, Cogswell, Davis, 17 B. Newton, Anthony, Crosby, S. Rivers, Thigpen, Hosey, 18 Murphy, Hardee, Weeks, King, Sottile and Anderson 19 20 S. Printed 4/26/17--S. 21 Read the first time March 2, 2017. 22 23

[3516-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 1228310, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO THE MOTOR 13 FUEL USER FEE, SO AS TO PHASE IN AN INCREASE 14 OF TEN CENTS ON THE FEE OVER FIVE YEARS; TO 15 AMEND SECTIONS 5611410 AND 5611450, BOTH 16 RELATING TO THE ROAD TAX, SO AS TO INCREASE 17 THE ROAD TAX IN THE SAME MANNER AS THE 18 MOTOR FUEL USER FEE; TO AMEND SECTION 19 563620, AS AMENDED, RELATING TO THE BIENNIAL 20 REGISTRATION OF A MOTOR VEHICLE, SO AS TO 21 INCREASE THE FEE FOR THE REGISTRATION; BY 22 ADDING SECTION 563627 SO AS TO REQUIRE EACH 23 RESIDENT TO PAY AN INFRASTRUCTURE 24 MAINTENANCE FEE UPON FIRST REGISTERING ANY 25 VEHICLE AND CERTAIN OTHER ITEMS IN THIS 26 STATE AND TO SPECIFY THE MANNER IN WHICH 27 THE FEE IS CALCULATED, CREDITED, AND 28 ADMINISTERED; BY ADDING SECTION 563645 SO AS 29 TO IMPOSE A ROAD USE FEE ON CERTAIN MOTOR 30 VEHICLES THAT OPERATE ON FUEL THAT IS NOT 31 SUBJECT TO THE MOTOR FUEL USER FEE; TO 32 AMEND SECTION 12362110, RELATING TO THE 33 MAXIMUM SALES TAX, SO AS TO INCREASE THE 34 MAXIMUM TAX ON CERTAIN ITEMS; TO AMEND 35 SECTION 12362120, AS AMENDED, RELATING TO 36 EXEMPTIONS FROM THE STATE SALES TAX, SO AS 37 TO EXEMPT ANY ITEM SUBJECT TO THE 38 INFRASTRUCTURE MAINTENANCE FEE; TO AMEND 39 SECTION 12361710, RELATING TO THE CASUAL

[3516] 2 1 EXCISE TAX, SO AS TO PROVIDE THAT MOTOR 2 VEHICLES AND MOTORCYCLES ARE NOT SUBJECT 3 TO THE TAX; AND TO AMEND ARTICLE 23, 4 CHAPTER 37, TITLE 12, RELATING TO MOTOR 5 CARRIERS, SO AS TO DEFINE TERMS, TO PROVIDE 6 THAT THE ARTICLE DOES NOT APPLY TO A SMALL 7 COMMERCIAL VEHICLE, TO PROVIDE THAT 8 CERTAIN VEHICLES ARE ASSESSED AND 9 APPORTIONED BASED ON A ROAD USE FEE 10 INSTEAD OF PROPERTY TAXES, TO PROVIDE THAT 11 THE ROAD USE FEE IS DUE AT THE SAME TIME AS 12 REGISTRATION FEES, TO PROVIDE FOR THE 13 DISTRIBUTION OF THE ROAD USE FEE, AND TO 14 EXEMPT CERTAIN SEMITRAILERS, TRAILERS, 15 LARGE COMMERCIAL MOTOR VEHICLES, AND 16 BUSES FROM AD VALOREM TAXATION. 17 18 Whereas, this act is a comprehensive approach to address the 19 effect that the deteriorating transportation infrastructure 20 system has on our State and its residents, tourists, and 21 economy; and 22 23 Whereas, our transportation infrastructure system has begun 24 to deteriorate, causing safety and economic problems. It is 25 time to focus the resources of our State in an efficient, 26 effective manner to stop that deterioration and to set our State 27 on the path toward building a firstclass road network that is 28 the envy of the nation; and 29 30 Whereas, this act will provide the Department of 31 Transportation with the resources it needs to effectively and 32 immediately address the highway, road, and bridge 33 maintenance and construction needs and to enable the 34 department to provide safe and highquality infrastructure for 35 the decades ahead; and 36 37 Whereas, the hazardous road conditions found throughout 38 our State endanger residents and visitors alike. This act 39 recognizes that safety is a paramount concern to drivers

[3516] 3 1 traversing the State and must also be a priority when the 2 Department of Transportation identifies projects to 3 undertake; and 4 5 Whereas, this act makes necessary reforms to the Department 6 of Transportation’s operational footprint to provide a more 7 effective, efficient delivery of services free from conflicts of 8 interest that undermine the public’s confidence that the taxes 9 that they pay are being applied in a fair, evenhanded manner 10 across the State; and 11 12 Whereas, the revenue generated by this act will provide the 13 Department of Transportation with additional resources, but 14 it will also place an additional financial burden on the State’s 15 taxpayers. This act strikes an appropriate balance between 16 the needs of our transportation infrastructure and the needs of 17 the taxpayers by providing targeted tax relief that will 18 stimulate economic growth, which, in turn, will generate 19 revenue growth from the sales of motor vehicles, from the 20 sale of fuel for motor vehicles, and from other provisions 21 contained in this act; and 22 23 Whereas, this act allocates to the Department of 24 Transportation adequate resources to build and maintain a 25 safe highway system for the residents of our State while 26 preserving for taxpayers the means to engage in commerce 27 and other daily activities that provide the Department of 28 Transportation with those resources. Now, therefore, 29 30 Be it enacted by the General Assembly of the State of South 31 Carolina: 32 33 SECTION 1. Section 571120(A) of the 1976 Code is 34 amended to read: 35 36 “(A)(1) All state revenues and state monies dedicated by 37 statute to the operation of the department must be deposited 38 into either the ‘State Highway Fund’, or the ‘State 39 NonFederal Aid Highway Fund’ ,or the ‘Infrastructure

[3516] 4 1 Maintenance Trust Fund’. Both All funds must be held and 2 managed by the State Treasurer separate and distinct from 3 the general fund, except as to monies utilized by the State 4 Treasurer for the payment of principal or interest on state 5 highway bonds as provided by law. Interest income from the 6 State Highway Fund must be deposited to the credit of the 7 State Highway Fund. Interest income from the NonFederal 8 Aid Highway Fund must be deposited to the credit of the 9 NonFederal Aid Highway Fund. Interest income from the 10 Infrastructure Maintenance Trust Fund must be deposited to 11 the credit of the Infrastructure Maintenance Trust Fund. The 12 commission may commit up to the maximum annual debt 13 service provided in Article X, Section 13 of the South 14 Carolina Constitution into a special fund to be used for the 15 sole purpose of paying the principal and interest, as it comes 16 due, on bonds issued for the construction or maintenance of 17 state highways, or both. This special account will be 18 designated as the State Highway Construction Debt Service 19 Fund. 20 (2) The Infrastructure Maintenance Trust Fund must be 21 used exclusively for the repairs, maintenance, and 22 improvements to the existing transportation system.” 23 24 SECTION 2. Section 1228310 of the 1976 Code is amended 25 by adding a subsection at the end to read: 26 27 “(D) On July 1, 2017, and each July first thereafter until 28 after July 1, 2022, the department shall permanently increase 29 the amount of the user fee imposed pursuant to subsection 30 (A) by two cents, for a total of twelve cents. All of the funds 31 raised by the increase in the motor fuel user fee imposed by 32 this subsection must be credited to the Infrastructure 33 Maintenance Trust Fund.” 34 35 SECTION 3. A. Section 5611410 of the 1976 Code is 36 amended to read: 37 38 “Section 5611410. (A) A road tax for the privilege of 39 using the streets and highways in this State is imposed upon

[3516] 5 1 every motor carrier. The tax is equivalent to sixteen cents a 2 gallon the user fee imposed pursuant to Section 1228310, 3 calculated on the amount of gasoline or other motor fuel used 4 by the motor carrier in its operations within this State. Except 5 as credit for certain taxes as provided for in this chapter, 6 taxes imposed on motor carriers by this chapter are in 7 addition to taxes imposed upon the carriers by any other 8 provision of law. 9 (B) Notwithstanding any other provision of law, all of the 10 road tax funds collected in excess of sixteen cents a gallon 11 after accounting for the credit provided in Section 5611450, 12 must be credited to the Infrastructure Maintenance Trust 13 Fund.” 14 15 B. Section 5611450(A) of the 1976 Code is amended to 16 read: 17 18 “(A) Every motor carrier subject to the tax imposed under 19 this chapter is entitled to a credit on the tax equivalent to 20 sixteen cents per gallon the user fee imposed pursuant to 21 Section 1228310 on all gasoline or other motor fuel 22 purchased by the carrier within this State for use in 23 operations either within or without this State and upon which 24 gasoline or other motor fuel the tax imposed by the laws of 25 this State has been paid by the carrier. Evidence of the 26 payment of the tax in such form as may be required by or is 27 satisfactory to the Department of Motor Vehicles must be 28 furnished by each carrier claiming the credit.” 29 30 SECTION 4. A. Section 563620 of the 1976 Code, as last 31 amended by Act 353 of 2008, is further amended to read: 32 33 “Section 563620. (A) For persons sixtyfive years of age or 34 older or persons who are handicapped, as defined in Section 35 5631950, the biennial registration fee for every private 36 passenger motor vehicle, excluding trucks, is twenty thirtysix 37 dollars. 38 (B) Beginning July 1, 1987, For persons under the age of 39 sixtyfive years the biennial registration fee for every private

[3516] 6 1 passenger motor vehicle, excluding trucks, is twentyfour 2 forty dollars. 3 (C) For persons sixtyfive years of age or older, the 4 biennial registration fee for a propertycarrying vehicle with a 5 gross weight of six thousand pounds or less is thirty fortysix 6 dollars. 7 (D) For persons who are sixtyfour years of age, the 8 biennial registration fee for a private passenger motor 9 vehicle, excluding trucks, is twentytwo thirtyeight dollars. 10 (E) Applicable truck fees, established by Section 563660, 11 are not negated by this section. 12 (F) Annual license plate validation stickers which are 13 issued for nonpermanent license plates on certified South 14 Carolina public law enforcement vehicles must be issued 15 without charge. 16 (G) From each biennial registration and license fee 17 collected, sixteen dollars must be credited to the 18 Infrastructure Maintenance Trust Fund.” 19 20 B. This SECTION takes effect January 1, 2018. 21 22 SECTION 5. A. Article 5, Chapter 3, Title 56 of the 1976 23 Code is amended by adding: 24 25 “Section 563627. (A) In order to account for the necessary 26 road maintenance caused by each item traversing the roads of 27 this State, in addition to the registration fees imposed by this 28 chapter, the owner of each vehicle or other item that is 29 required to be registered pursuant to this chapter must pay an 30 infrastructure maintenance fee upon first registering the 31 vehicle or other item. Also, the owner of each trailer or 32 semitrailer must pay the fee upon first registering the trailer 33 or semitrailer. The Department of Motor Vehicles may not 34 issue a registration until the infrastructure maintenance fee 35 has been collected. The infrastructure maintenance fee must 36 be credited to the Infrastructure Maintenance Trust Fund. 37 (B) If upon purchasing or leasing the item from a dealer, 38 the owner first registers the item in this State, then the fee 39 equals five percent, not to exceed five hundred dollars, of the

[3516] 7 1 gross proceeds of sales, or sales price, as those terms are 2 defined in Chapter 36, Title 12. If the dealer holds a South 3 Carolina retail license or offers to license and register the 4 item, then the dealer must collect the fee and remit it to the 5 Department of Motor Vehicles. 6 (C)(1) If upon purchasing or leasing the item from a person 7 other than a dealer, the owner first registers the item in this 8 State, then the fee equals five percent, not to exceed five 9 hundred dollars, of the fair market value of the item. 10 (2) Excluded from the fee imposed pursuant to this 11 subsection are: 12 (a) items transferred: 13 (i) to members of the immediate family; 14 (ii) to a legal heir, legatee, or distributee; 15 (iii) from an individual to a partnership upon 16 formation of a partnership, or from a stockholder to a 17 corporation upon formation of a corporation; 18 (iv) to a licensed motor vehicle or motorcycle dealer 19 for the purpose of resale; 20 (v) to a financial institution for the purpose of 21 resale; 22 (vi) as a result of repossession to any other secured 23 party, for the purpose of resale; 24 (b) the fair market value of an item transferred to the 25 seller or secured party in partial payment; 26 (c) gross proceeds of transfers of items specifically 27 exempted by Section 12362120 from the sales or use tax; 28 (d) items where a sales or use tax has been paid on 29 the transaction necessitating the transfer. 30 (3) The Department of Motor Vehicles shall require 31 every applicant for a certificate of title to supply information 32 it considers necessary as to the time of purchase, the 33 purchase price, and other information relative to the 34 determination of fair market value. If the fee is based upon 35 total purchase price as defined in this subsection, the 36 department shall require a submission of a bill of sale and the 37 signature of the owner subject to the perjury statutes of this 38 State. 39 (4) For purposes of this subsection:

[3516] 8 1 (a) ‘Fair market value’ means the total purchase price 2 less any tradein, or the valuation shown in a national 3 publication of used values adopted by the department, less 4 any tradein. 5 (b) ‘Immediate family’ means spouse, parents, 6 children, sisters, brothers, grandparents, and grandchildren. 7 (c) ‘Total purchase price’ means the price of an item 8 agreed upon by the buyer and seller with an allowance for a 9 tradein, if applicable. 10 (D)(1) If upon purchasing or leasing the item, the owner 11 first registers the item in another state, and subsequently 12 registers the item in this State, then the fee equals two 13 hundred fifty dollars. 14 (2) This subsection does not apply if the owner of the 15 item is serving on active duty in the armed forces of the 16 United States. The exclusion allowed by this item also 17 extends to items owned by the spouse or dependent of a 18 person serving on active duty in the armed forces of the 19 United States. 20 (3) Notwithstanding any other provision of this section, 21 until after December 31, 2022, the revenue collected pursuant 22 to this subsection must be credited to the Safety Maintenance 23 Account established pursuant to Section 1111240. After 24 December 31, 2022, the revenue collected pursuant to this 25 subsection must be credited to the Infrastructure Maintenance 26 Trust Fund. 27 (E)(1)(a)The Department of Motor Vehicles shall transfer 28 eighty percent of every fee collected on motor vehicles 29 pursuant to subsections (B) and (C), but not to exceed two 30 hundred forty dollars, to the Department of Transportation to 31 be allocated to the statefunded resurfacing program. The 32 Department of Transportation shall develop and implement a 33 needsbased methodology to distribute revenue within the 34 statefunded resurfacing program, which shall include 35 consideration of pavement condition on a countybycounty 36 basis, to ensure that each county in the State is guaranteed 37 funding for resurfacing. 38 (b) The Department of Motor Vehicles shall transfer 39 twenty percent of every fee collected on motor vehicles

[3516] 9 1 pursuant to subsections (B) and (C), but not to exceed sixty 2 dollars, to the South Carolina Education Improvement Act of 3 1984 Fund. 4 (2) The Department of Transportation shall reduce the 5 allocation to the statefunded resurfacing program required in 6 item (1) in proportion to the amounts transferred to the South 7 Carolina Transportation Infrastructure Bank pursuant to 8 subsection (F) and in proportion to the amounts required by 9 the Department of Transportation to fund repairs, 10 maintenance, and improvements to the existing transportation 11 system. 12 (F)(1) The Department of Transportation shall identify 13 bridge and road projects to be financed utilizing nontax 14 revenue transferred to the bank by the Department of 15 Transportation in an amount equal to the financing 16 requirements related to projects selected pursuant to this 17 section, provided that: 18 (a) Fifty million dollars in revenue utilized by the 19 bank shall be used to finance bridge replacement, 20 rehabilitation projects, and expansion and improvements on 21 existing roads in the State Highway System. 22 (b) Funds in excess of fifty million dollars utilized by 23 the bank shall be used to finance expansion and 24 improvements to existing mainline interstates. 25 (2) Funds transferred to the bank pursuant to this 26 section may not be used to finance projects approved by the 27 bank before July 1, 2013. The bank shall submit all projects 28 proposed to be financed pursuant to subsection (B) to the 29 Joint Bond Review Committee as provided in Section 30 1143180, before approving a project for financing. 31 (3) Following consideration by the Joint Bond Review 32 Committee, the bank shall approve the projects to be 33 financed. Upon approval, the bank shall provide the 34 Department of Transportation with written notice that 35 identifies each project selected, the amount of nontax 36 revenue that must be transferred to the bank for financing 37 each project, a schedule for the transfers, and any other 38 information necessary to carrying out the financing of each 39 project.

[3516] 10 1 (4) Upon receipt of the notice provided in item (3), the 2 Department of Transportation shall transfer nontax revenue 3 to the bank in the amounts and upon the schedule provided in 4 the notice. The department shall take any other action 5 identified in the notice that is necessary for financing each 6 project. 7 (5) Projects financed utilizing funds transferred 8 pursuant to this subsection shall not require a local match. 9 (G) The Secretary of Transportation shall apply funds 10 supplanted by the operation of this section to prioritized 11 bridge and resurfacing needs. 12 (H) Notwithstanding any other provision of this section, 13 any transaction exempt pursuant to Section 12362120(25), is 14 also exempt from the infrastructure maintenance fee.” 15 16 B. This SECTION takes effect on July 1, 2017. 17 18 SECTION 6. A. Chapter 3, Title 56 of the 1976 Code is 19 amended by adding: 20 21 “Section 563645. (A) In addition to the registration fees 22 imposed by this chapter, the owner of motor vehicles that are 23 powered: 24 (1) exclusively by electricity, hydrogen, or any fuel 25 other than motor fuel, as defined in Section 1228110(39), 26 that are not subject to motor fuel user fees imposed by 27 Chapter 28, Title 12 shall pay a biennial road use fee of one 28 hundred twenty dollars; and 29 (2) by a combination of motor fuel subject to motor fuel 30 user fees imposed by Chapter 28, Title 12 and electricity, 31 hydrogen, or any fuel other than motor fuel that is not subject 32 to motor fuel user fees imposed by Chapter 28, Title 12 shall 33 pay a biennial road use fee of sixty dollars. 34 (B) All of the fees collected pursuant to this section must 35 be credited to the Infrastructure Maintenance Trust Fund. 36 (C) The Department of Motor Vehicles shall collect this 37 fee at the same time as the vehicle subject to the fee is 38 registered.” 39

[3516] 11 1 B. This SECTION takes effect January 1, 2018. 2 3 SECTION 7. A. Section 12362110(A) of the 1976 Code is 4 amended to read: 5 6 “(A)(1) The maximum tax imposed by this chapter is 7 three hundred dollars for each sale made after June 30, 1984, 8 or lease executed, after August 31, 1985, of each: 9 (1)(a) aircraft, including unassembled aircraft which 10 is to be assembled by the purchaser, but not items to be 11 added to the unassembled aircraft; 12 (2)(b) motor vehicle; 13 (3)(c) motorcycle; 14 (4)(d) boat; 15 (5)(e) trailer or semitrailer, pulled by a truck tractor, 16 as defined in Section 56320, and horse trailers, but not 17 including house trailers or campers as defined in Section 18 563710 or a fire safety education trailer; 19 (6)(f) recreational vehicle, including tent campers, 20 travel trailer, park model, park trailer, motor home, and fifth 21 wheel; or 22 (7)(g) selfpropelled light construction equipment with 23 compatible attachments limited to a maximum of one 24 hundred sixty net engine horsepower. 25 (2) In the case of a lease, the total tax rate required by 26 law this section applies on each payment until the total tax 27 paid equals three hundred dollars. Nothing in this section 28 prohibits a taxpayer from paying the total tax due at the time 29 of execution of the lease, or with any payment under the 30 lease. To qualify for the tax limitation provided by this 31 section, a lease must be in writing and specifically state the 32 term of, and remain in force for, a period in excess of ninety 33 continuous days. 34 (3) Notwithstanding any other provision of this 35 subsection, after June 30, 2017, the maximum tax imposed 36 pursuant to this chapter on the sale, lease, or registration of 37 an item enumerated in item (1) only applies to items not 38 subject to the fee pursuant to Section 563627.

[3516] 12 1 (4) Notwithstanding any other provision of this 2 subsection, after June 30, 2017, the maximum tax imposed 3 pursuant to this chapter on the sale, lease, or registration of 4 an item enumerated in item (1) is increased from three 5 hundred dollars to five hundred dollars, mutatis mutandis. 6 Notwithstanding Section 59211010, or any other provision of 7 law, any revenue resulting from the increase contained in this 8 item must be credited to the Infrastructure Maintenance Trust 9 Fund. 10 (5) Notwithstanding any other provision of law, 11 revenues resulting from the maximum tax imposed pursuant 12 to this chapter on the sale, lease, or registration of an item 13 enumerated in item (1) which would be subject to the fee set 14 forth in Section 563627 but for the state in which it is 15 registered, must be collected by and remitted to the 16 Department of Motor Vehicles. Upon collection, the 17 Department of Motor Vehicles must transfer all the revenues 18 to the Infrastructure Maintenance Trust Fund.” 19 20 B. Section 12362120 of the 1976 Code, as last amended by 21 Act 256 of 2016, is further amended by adding an 22 appropriately numbered item to read: 23 24 “( ) any item subject to the fee set forth in Section 25 563627.” 26 27 C. Section 12361710(A) through (D) of the 1976 Code is 28 amended to read: 29 30 “(A) In addition to all other fees prescribed by law there 31 is imposed an excise tax for the issuance of every certificate 32 of title, or other proof of ownership, for every motor vehicle, 33 motorcycle, boat, motor, or airplane, required to be 34 registered, titled, or licensed. The tax is five percent of the 35 fair market value of the motor vehicle, motorcycle, airplane, 36 boat, and motor. 37 (B) Excluded from the tax are: 38 (1) motor vehicles, motorcycles, boats, motors, or 39 airplanes:

[3516] 13 1 (a) transferred to members of the immediate family; 2 (b) transferred to a legal heir, legatee, or distributee; 3 (c) transferred from an individual to a partnership 4 upon formation of a partnership, or from a stockholder to a 5 corporation upon formation of a corporation; 6 (d) transferred to a licensed motor vehicle or 7 motorcycle dealer for the purpose of resale; 8 (e) transferred to a financial institution for the 9 purpose of resale; 10 (f) transferred as a result of repossession to any other 11 secured party, for the purpose of resale; 12 (2) the fair market value of a motor vehicle, motorcycle, 13 boat, motor, or airplane, transferred to the seller or secured 14 party in partial payment; 15 (3) gross proceeds of transfers of motor vehicles, 16 motorcycles, or airplanes specifically exempted by Section 17 12362120 from the sales or use tax; 18 (4) motor vehicles, motorcycles, boats, motors, or 19 airplanes, where a sales or use tax has been paid on the 20 transaction necessitating the transfer. 21 (C) ‘Fair market value’ means the total purchase price less 22 any tradein, or the valuation shown in a national publication 23 of used values adopted by the department, less any tradein. 24 (D) ‘Total purchase price’ means the price of a motor 25 vehicle, motorcycle, boat, motor, or airplane agreed upon by 26 the buyer and seller with an allowance for a tradein, if 27 applicable.” 28 29 D. Section 12362647 of the 1976 Code is repealed. 30 31 E.The Code Commissioner is directed to change or correct 32 all references to the sales tax on vehicles and other such 33 items to reflect the provisions of Section 563627 as added by 34 this act. References to the sales tax on vehicles and other 35 such items in the 1976 Code or other provisions of law are 36 considered to be and must be construed to mean appropriate 37 references. 38

[3516] 14 1 SECTION 8. A. Article 23, Chapter 37, Title 12 of the 2 1976 Code is amended to read: 3 4 “Article 23 5 6 Motor Carriers 7 8 Section 12372810. As used in this article, unless the 9 context requires otherwise: 10 (A) ‘Motor carrier’ means a person who owns, controls, 11 operates, manages, or leases a commercial motor vehicle, or 12 bus for the transportation of property or persons in intrastate 13 or interstate commerce except for scheduled intercity bus 14 service and farm vehicles using FM tags as allowed by the 15 Department of Motor Vehicles. A motor carrier is defined 16 further as being a South Carolinabased International 17 Registration Plan registrant or owning or leasing real 18 property within this State used directly in the transportation 19 of freight or persons. 20 (B) ‘Commercial motor vehicle’ means a motor propelled 21 vehicle used for the transportation of property on a public 22 highway with a gross vehicle weight of greater than 23 twentysix thousand pounds, except for farm vehicles using 24 FM tags as allowed by the Department of Motor Vehicles. 25 (C) ‘Large commercial motor vehicle’ means a 26 commercial motor vehicle with a gross vehicle weight of 27 greater than twentysix thousand pounds that is registered 28 under the International Registration Plan or used on a 29 highway for the transportation of property. 30 (D) ‘Small commercial motor vehicle’ means a 31 commercial motor vehicle with a gross vehicle weight of less 32 than or equal to twentysix thousand pounds that is registered 33 under the International Registration Plan or used on a 34 highway for the transportation of property. 35 (C)(E)‘Highway’ means all public roads, highways, 36 streets, and ways in this State, whether within a municipality 37 or outside of a municipality. 38 (D)(F)‘Person’ means any individual, corporation, firm, 39 partnership, company or association, and includes a guardian,

[3516] 15 1 trustee, executor, administrator, receiver, conservator, or a 2 person acting in a fiduciary capacity. 3 (E)(G)‘Semitrailers’ means every vehicle with or without 4 motive power, other than a pole trailer, designed for carrying 5 property and for being drawn by a motor vehicle and 6 constructed so that a part of its weight and of its load rests 7 upon or is carried by another vehicle. 8 (F)(H)‘Trailers’ means every vehicle with or without 9 motive power, other than a pole trailer, designed for carrying 10 property and for being drawn by a motor vehicle and 11 constructed so that no part of its weight rests upon the towing 12 vehicle. 13 (G)(I) ‘Bus’ means every motor vehicle designed for 14 carrying more than sixteen passengers and used for the 15 transportation of persons, for compensation, other than a 16 taxicab or intercity bus. 17 (J) ‘South Carolina apportionment factor’ means the ratio 18 of miles operated by a fleet of vehicles in South Carolina to 19 the miles operated by the fleet of vehicles everywhere, which 20 is used to apportion the registration fees of the fleet under the 21 International Registration Plan. 22 23 Section 12372815. The provisions contained in this article 24 do not apply to small commercial motor vehicles that must be 25 licensed, registered, and pay ad valorem taxes as otherwise 26 provided by law. 27 28 Section 12372820. (A) The Department of Revenue 29 Motor Vehicles annually shall assess, equalize, and apportion 30 the valuation of all large commercial motor vehicles and 31 buses of motor carriers registered for use in this State under 32 the International Registration Plan or otherwise pursuant to 33 Section 563190. The valuation must be based on fair market 34 value for the motor vehicles and an assessment ratio of nine 35 and onehalf percent as provided by Section 1243220(g). Fair 36 market value is determined by depreciating the gross 37 capitalized cost of each motor carrier’s large commercial 38 motor vehicle, or bus by an annual percentage depreciation 39 allowance down to ten percent of the cost as follows:

[3516] 16 1 (1) Year One .90 2 (2) Year Two .80 3 (3) Year Three .65 4 (4) Year Four .50 5 (5) Year Five .35 6 (6) Year Six .25 7 (7) Year Seven .20 8 (8) Year Eight .15 9 (9) Year Nine .10 10 (B) ‘Gross capitalized cost’, as used in this section, means 11 the original cost upon acquisition for income tax purposes, 12 not to include taxes, interest, or cab customizing. 13 14 Section 12372830. The value of a motor carrier’s large 15 commercial motor vehicles and buses subject to property 16 taxes road use fees in this State must be determined based on 17 the ratio of total mileage operated within this State during the 18 preceding calendar year to the total mileage of its fleet 19 operated within and without this State during the same 20 preceding calendar year according to the South Carolina 21 apportionment factor for the fleet of which the commercial 22 vehicle is a part. 23 24 Section 12372840. (A) Motor carriers must file an annual 25 property tax return with the Department of Revenue no later 26 than June 30 for the preceding calendar year and remit 27 onehalf of the tax due or the entire tax due as stated on the 28 return. If the motor carrier fails to pay either onehalf of the 29 tax due or the entire tax due as of June 30, the department 30 must issue a proposed assessment for the entire tax to the 31 motor carrier. The tax as shown in the proposed assessment 32 must be paid in full by cashier’s check, money order, or cash 33 within thirty days of the issuance of the proposed assessment, 34 or the taxpayer may appeal the proposed assessment within 35 thirty days using the procedures provided in subarticle 1, 36 Article 5, Chapter 60 of this title. 37 (B)(1) If onehalf of the tax is remitted on or before June 38 30, the remaining onehalf of the tax due must be paid to the 39 Department of Revenue on or before December 31 of that

[3516] 17 1 year. If the motor carrier fails to remit the remaining tax due 2 pursuant to this section, the department shall issue a proposed 3 assessment to the motor carrier. 4 (2) The tax shown in the proposed assessment must be 5 paid in full by cashier’s check, money order, or cash or 6 appealed within thirty days of the issuance of the proposed 7 assessment. The taxpayer may appeal the proposed 8 assessment using the procedures provided in subarticle 1, 9 Article 5, Chapter 60 of this title. 10 (C) If a motor carrier fails to timely file the return as 11 required by this section, the department shall issue a 12 proposed assessment which assumes all mileage of the motor 13 carrier’s fleet was driven within this State. A taxpayer may 14 appeal this proposed assessment using the procedures 15 provided in subarticle 1, Article 5, Chapter 60 of this title. 16 (D) A twentyfive percent penalty must be added to the 17 property tax due if the motor carrier fails to file a return or 18 pay any tax due, including the onehalf of the tax due on June 19 30, as required by this section. The penalty must be applied 20 the day after the date that the return was due to be filed or the 21 tax was due to be paid. This penalty is instead of all other 22 penalties and interest required by law, except those provided 23 in Section 125444. 24 (E) If the motor carrier fails to remit the tax due within 25 thirty days of receipt of the proposed assessment and the 26 taxpayer fails to appeal the proposed assessment as provided 27 in subsection (B), the department shall assess the tax. Tax 28 due pursuant to this section is subject to the collection 29 procedures provided in Chapter 54, of this title, except that 30 the penalty provisions of Section 125443 do not apply A 31 motor carrier registering a large commercial motor vehicle or 32 bus must pay the road use fee due on the vehicle at the time 33 and in the manner the person pays the registration fees on the 34 vehicle pursuant to Section 563660. A person choosing to 35 pay registration fees on a large commercial motor vehicle or 36 bus in quarterly installments pursuant to Section 563660 also 37 must pay the road use fee on the vehicle in the same quarterly 38 installments. 39

[3516] 18 1 Section 12372842. (A) The Department of Motor 2 Vehicles, at the time of first registration by a motor carrier as 3 defined in this article, shall notify the registrant of the 4 Department of Revenue’s registration and filing requirements 5 and supply the required registration forms. 6 (B) The motor carrier must register with the Department 7 of Revenue within thirty days following the year in which the 8 vehicle or bus was first registered for operation in South 9 Carolina. 10 (C) A motor carrier must notify the Department of 11 Revenue, on forms supplied by the department, of a motor 12 vehicle or bus that is disposed of before December 31. 13 14 Section 12372850. Beginning on January 1, 2019, the 15 Department of Revenue Motor Vehicles shall assess annually 16 the taxes road use fee due on large commercial motor 17 vehicles and buses based on the value determined in Section 18 12372820 and an average millage for all purposes statewide 19 for the preceding calendar year and shall publish the average 20 millage for the preceding year by June 1 July first of each 21 year. The Department of Revenue, in consultation with the 22 Revenue and Fiscal Affairs Office, shall calculate the millage 23 to be used to calculate the road use fee by June first of each 24 year for the following calendar year. The taxes road use fee 25 assessed must be paid to the Department of Revenue no later 26 than December 31 of each year and may be made in two 27 equal installments Motor Vehicles, in addition to the 28 registration fees required pursuant to Sections 563660 and 29 563670, at the time and in the manner that the registration 30 fees on the vehicle are paid pursuant to Sections 563660 and 31 563670. Distribution of the taxes fees paid must be made by 32 the State Treasurer’s Office of the State Treasurer based on 33 the distribution formula contained provided in Section 34 12372870 Sections 12372865 and 12372870. 35 36 Section 12372860. (A) In addition to the property tax 37 exemptions allowed pursuant to Section 1237220, one 38 hundred percent of the fair market value of semitrailers and 39 trailers as defined in Section 12372810, and commonly used

[3516] 19 1 in combination with a large commercial motor vehicle, as 2 defined pursuant to Section 12372810, is exempt from 3 property tax. 4 (B) Instead of the any property taxes tax and the 5 registration requirements contained provided in Sections 6 563110 and 563700 on semitrailers and trailers of motor 7 carriers as defined in Section 12372810, and commonly used 8 in combination with a large commercial motor vehicle, a 9 onetime fee payable to the Department of Motor Vehicles in 10 the amount of eightyseven dollars is due imposed on all 11 semitrailers and trailers currently registered and subsequently 12 on each semitrailer and trailer before being placed in service. 13 (C) The fee imposed pursuant to subsection (B) and the 14 registration requirements of this article are in lieu of any 15 local road use fee, registration fees, or any other vehicle 16 related fee imposed by a political subdivision of this State on 17 a trailer or semitrailer. 18 (B)(D) Twelve dollars of the onetime fee must be 19 distributed to the Department of Revenue Motor Vehicles 20 and may be retained by the Department of Revenue Motor 21 Vehicles and expended in budgeted operations to record and 22 administer the fee. The remaining seventyfive dollars of the 23 fee must be distributed based on the distribution formula 24 contained provided in Section Sections 12372865 and 25 12372870, and must occur by the fifteenth day of the month 26 following the month in which the fees are collected. 27 (C) The fee required by this section is due on or before 28 March 31, 1998, for the initial registration. 29 (D)(E)The Department of Motor Vehicles shall design a 30 permanent tag for display on the exterior of the rear of the 31 trailer or semitrailer in a conspicuous place. 32 (F) If the apportioned registration fees of a large 33 commercial motor vehicle or bus and the road use fees for 34 large commercial motor vehicles required under this chapter 35 are equal to or exceed four hundred dollars, the fees may be 36 remitted to the Department of Motor Vehicles quarterly 37 provided that each installment is made online. A motor 38 carrier who fails to make a quarterly payment on a timely 39 basis may no longer make installment payments and must

[3516] 20 1 remit to the department the balance of the fees owed for any 2 previous calendar year before the Department of Motor 3 Vehicles will renew registration for the current calendar year. 4 A motor carrier that opts out of installment payments must 5 make full payment of fees at the time of registration. 6 7 Section 12372865. Seventyfive percent of the revenues 8 from the road use fee assessed pursuant to Section 12372850, 9 and the onetime fee assessed pursuant to Section 12372860 10 must be distributed by the State Treasurer as provided in 11 Section 12372870. Distributions must be made by the last 12 day of the next month succeeding the month in which the fee 13 is paid. The remaining twentyfive percent must be credited 14 to the Infrastructure Maintenance Trust Fund to be used to 15 finance expansion and improvements to existing mainline 16 interstates. 17 18 Section 12372870. The distribution of the fee revenues 19 required to be distributed pursuant to Section 12372865 for 20 each county must be determined on the ratio of total federal 21 and state highway miles within each county during the 22 preceding calendar year to the total federal and state highway 23 miles within all counties of this State during the same 24 preceding calendar year. The county must distribute the 25 revenue from the paymentinlieu of taxes received pursuant to 26 this section within thirty days of its receipt to every 27 governmental entity levying a property tax in the manner set 28 forth below. For each governmental entity levying a property 29 tax, the entire assessed value of the taxable property within 30 its boundaries and the county area must be multiplied by the 31 millage rate imposed by the governmental entity. That figure 32 constitutes the numerator for that governmental entity. The 33 total of the numerators for all property tax levying entities 34 within the county area constitutes the denominator. The 35 numerator for each governmental entity must be divided by 36 the denominator. The resulting percentage must be multiplied 37 by the paymentinlieu of tax fee revenue received pursuant to 38 this section and that amount distributed to the general fund of 39 the appropriate governmental entity. The distribution of taxes

[3516] 21 1 and fees paid must be made by the last day of the next month 2 succeeding the month in which the taxes and fees were paid. 3 4 Section 12372880. (A) In addition to the property tax 5 exemptions allowed pursuant to Section 1237220, one 6 hundred percent of the fair market value of all large 7 commercial motor vehicles and buses registered for use in 8 this State under the International Registration Plan or 9 otherwise pursuant to Section 563190, is exempt from 10 property tax and is instead subject to the road use fee 11 imposed pursuant to this article. 12 (B) The ad valorem taxes authorized road use fee imposed 13 by this article are is in lieu of all other ad valorem taxes upon 14 the large commercial motor vehicles or buses of motor 15 carriers, and any road use or other vehiclerelated fees 16 imposed by a political subdivision of this State if registered 17 for use in this State under the International Registration Plan. 18 The feeinlieu of property taxes and registration requirements 19 authorized by this article are in lieu of all other ad valorem 20 taxes upon trailers and semitrailers of motor carriers. 21 22 Section 12372890. (A) Upon request by the Department 23 of Revenue, and after the time period for all appeals of tax 24 due is exhausted, the Department of Motor Vehicles shall 25 suspend the driver’s license and vehicle registration of a 26 person that fails to file or pay a motor carrier property tax on 27 a vehicle, pursuant to this article. The request to suspend 28 must be an electronic notification from the Department of 29 Revenue to the Department of Motor Vehicles. Before 30 notification is sent to the Department of Motor Vehicles, the 31 Department of Revenue shall notify the delinquent taxpayer 32 by certified letter of the pending suspension and of the steps 33 necessary to prevent the suspension from being entered on 34 the taxpayer’s driving and registration records. The 35 department shall allow thirty days for payment of taxes 36 before notifying the Department of Motor Vehicles to 37 suspend the driver’s license and vehicle registration. 38 (B) Notwithstanding the provisions of Sections 561460 39 and 569500, a charge of driving under suspension when the

[3516] 22 1 suspension is solely for failure to file or pay a motor carrier 2 property tax or the reinstatement fee required for the property 3 tax does not require proof of financial responsibility. A 4 person is not subject to a custodial arrest solely for being 5 under suspension pursuant to this section. Upon conviction of 6 a violation of this section, the taxpayer is subject to: 7 (1) for a first offense a fine not to exceed fifty dollars; 8 (2) for a second offense a fine not to exceed two 9 hundred fifty dollars; and 10 (3) for a third or subsequent offense under this section, 11 the penalty is a fine not to exceed five hundred dollars or 12 imprisonment not to exceed thirty days, or both. 13 (C) Notwithstanding the provisions of subsections (A) and 14 (B) of this section or the provisions of Section 561460, a 15 charge of driving under suspension issued solely as a result 16 of this section must be dismissed if the taxpayer provides 17 proof on the taxpayer’s court date that the personal property 18 taxes on the vehicle which resulted in the charge being issued 19 have been paid. 20 (D) Before the reinstatement of a driver’s license or 21 vehicle registration suspended due to a violation of this 22 section, a fee of fifty dollars must be paid to the Department 23 of Motor Vehicles. The Department of Motor Vehicles may 24 retain revenues generated by payment of the reinstatement 25 fees pursuant to this section for use in defraying costs 26 associated with suspension and reinstatement actions 27 pursuant to this section Fees collected in excess of actual 28 departmental direct costs related to suspension and 29 reinstatement actions pursuant to this section must be 30 deposited to the credit of the general fund of the State at the 31 end of each fiscal year.” 32 33 B. Section 563376 of the 1976 Code is amended to read: 34 35 “Section 563376. (A) All vehicles except those vehicles 36 designated in Section 563780 are designated as distinct 37 classifications and must be assigned an annual registration 38 period as follows:

[3516] 23 1 (1) Classification (1). Vehicles for which the biennial 2 registration fee is onehundred sixty dollars or more. The 3 Department of Motor Vehicles may register and license a 4 vehicle for which the biennial registration fee is onehundred 5 sixty dollars or more or for a semiannual or onehalf year 6 upon application to the department by the owner and the 7 payment of onefourth of the specified biennial fee. Biennial 8 registrations and licenses expire at midnight on the last day 9 of the twentyfourth month for the period for which they were 10 issued. Semiannual or halfyear registrations and licenses 11 expire at midnight of the sixth month for the period for which 12 they were issued and no person shall drive, move, or operate 13 a vehicle upon a highway after the expiration of the 14 registration and license until the vehicle is registered and 15 licensed for the then current period. Trucks, truck tractors, or 16 road tractors with an empty or unloaded weight of over five 17 thousand pounds or less, or gross vehicle weight of eight 18 thousand pounds or less also must be placed in this 19 classification but may not be registered for less than a full 20 biennial period. 21 (2) Classification (2). Other vehicles. All other vehicles 22 except those vehicles described in classification (1) and (3) 23 of this section are assigned a staggered biennial registration 24 which expires on the last day of the month for the period for 25 which they were issued. 26 (3) Classification (3).Large commercial motor vehicles 27 and buses registered by motor carriers, as defined in Section 28 12372810, are assigned a staggered annual registration which 29 expires on the last day of the month for the period for which 30 they were issued. 31 (B) Notwithstanding the registration periods provided in 32 this section, upon appropriate notice, the department may 33 revise the established renewal dates to allow renewals to be 34 assigned an expiration date pursuant to a staggered monthly 35 basis.” 36 37 C. Section 563120(5) of the 1976 Code is amended to read: 38

[3516] 24 1 “(5) a trailer or semitrailer of a motor carrier commonly 2 used in combination with a large commercial motor vehicle, 3 as defined in Section 12372810, for which trailer or 4 semitrailer the feeinlieu of taxes and registration 5 requirements has been paid fee imposed pursuant to Section 6 12372860 is paid and applicable registration requirements 7 provided pursuant to Article 23, Chapter 37, Title 12, are 8 met, and a distinctive permanent plate has been issued 9 pursuant to Section 12372860.” 10 11 D. Section 563610 of the 1976 Code is amended to read: 12 13 “Section 563610. (A) Except as provided in subsection 14 (B), the owner of every motor vehicle, trailer, semitrailer, 15 pole trailer, and special mobile equipment vehicle required to 16 be registered and licensed under this chapter shall pay to the 17 Department of Motor Vehicles at the time of registering and 18 licensing the vehicle and biennially after that time 19 registration and license fees as set forth in this article. 20 (B) A large commercial motor vehicle or bus on which is 21 imposed the road use fee provided pursuant to Article 23, 22 Chapter 37, Title 12 is required to be registered and licensed 23 annually pursuant to this chapter and the scheduled fees 24 adjusted as provided pursuant to Section 563660(E).” 25 26 E.Section 563660(A) of the 1976 Code is amended to read: 27 28 “Section 563660. (A) The determination of gross vehicle 29 weight to register and license selfpropelled property carrying 30 vehicles is the empty weight of the vehicle or combination of 31 vehicles and the heaviest load to be transported by the 32 vehicle or combination of vehicles as declared by the 33 registered owner. All determinations of weight must be made 34 in units of one thousand pounds or major fraction of one 35 thousand pounds. The declared gross vehicle weight applies 36 to all selfpropelled property carrying vehicles operating in 37 tandem with trailers or semitrailers except that the gross 38 weight of a trailer or semitrailer is not required to be included 39 when the operation is to be in tandem with a selfpropelled

[3516] 25 1 property carrying vehicle licensed for six thousand pounds or 2 less gross weight, and the gross vehicle weight of the 3 combination does not exceed nine thousand pounds. The 4 Department of Motor Vehicles may register and license a 5 vehicle of this classification small commercial motor vehicle, 6 as defined in Section 12372810, for which the biennial 7 registration and license fee is onehundred and sixty dollars or 8 more for an annual or oneyear period beginning on April first 9 and ending on March thirtyfirst of the next year upon 10 application to the department by the owner and the payment 11 of onehalf the specified biennial fee or for a semiannual or 12 onehalf year beginning on April first and ending on 13 September thirtieth of the same year upon application to the 14 department by the owner and the payment of the appropriate 15 fees. The registration and license fee for small commercial 16 motor vehicles in this classification which are registered for 17 the remaining twentyfour months or less of the twentyfour 18 month biennial period or for the eleven months or less of the 19 twelvemonth year ending on March thirtyfirst or the 20 remaining five months or less for the onehalf period ending 21 on September thirtieth is the proportionate part of the 22 specified biennial fee for the remainder of the twentyfour 23 month period or year or onehalf year based on one 24 twentyfourth of the specified twentyfourmonth fee for each 25 month or part of a month remaining in the biennial 26 registration period or license year or onehalf year. No An 27 proportionate fee may not be reduced lower than ten dollars. 28 A person making application for a registration and license for 29 a motor vehicle of this classification shall declare the true 30 unloaded or empty weight of the vehicle.” 31 32 F.Section 563660 of the 1976 Code is amended by adding an 33 appropriately lettered subsection to read: 34 35 “( ) Fees for licensing and registration, and fees imposed 36 pursuant to Article 23, Chapter 37, Title 12, may be credited 37 or prorated as prescribed by the Department of Motor 38 Vehicles.” 39

[3516] 26 1 G. Section 563660(E) of the 1976 Code is amended to read: 2 3 “(E)The department may register an apportionable a large 4 commercial motor vehicle, as defined in Section 12372810, 5 for the payment of onehalf of this State’s portion of the 6 license and road fee for a vehicle whose portion of the 7 license and road fee owed to this State exceeds eight four 8 hundred dollars. The department may require any 9 information necessary to complete the transaction.” 10 11 H. Section 5823620 of the 1976 Code is amended to read: 12 13 “Section 5823620. (A) No city, town, A municipality or 14 county in this State shall may not impose a license fee or 15 license tax upon a holder of a certificate A or a certificate B, 16 and no city, town, a municipality or county shall may not 17 impose a license fee or license tax on the holder of a 18 certificate E or a certificate F, Certificate of Compliance, or a 19 common or contract motor carrier of property, except the city 20 or town municipality of such the carrier’s residence or the 21 location of his the carrier’s principal place of business. 22 However, the fee required of a holder of a certificate C is in 23 addition to any license tax or license fee charged by a 24 municipality. 25 (B) If a municipality or county imposes a license fee or 26 license tax pursuant to subsection (A), the fee or tax in the 27 case of any certificate holder or common or contract motor 28 carrier of property which operates its vehicles both within 29 and without this State, must be apportioned in the ratio that 30 the miles traveled by the vehicles operated by the certificate 31 holder in this State bears to miles traveled by those vehicles 32 in all states.” 33 34 I. Article 21, Chapter 37, Title 12 of the 1976 Code is 35 amended by adding: 36 37 “Section 12372600. Motor carriers, as defined in Section 38 12372810, are exempt from ad valorem taxes imposed

[3516] 27 1 pursuant to this chapter on large commercial motor vehicles 2 and buses.” 3 4 J. Section 12372610 of the 1976 Code, as last amended by 5 Act 87 of 2015, is further amended to read: 6 7 “Section 12372610. The tax year for licensed motor 8 vehicles begins with the last day of the month in which a 9 registration required by Section 563110 is issued and ends on 10 the last day of the month in which the registration expires or 11 is due to expire. No A registration may not be issued for 12 motor vehicles until the ad valorem tax is paid for the year 13 for which the registration is to be issued. Motor vehicles 14 registered under the International Registration Plan may pay 15 ad valorem property taxes on a semiannual basis Large 16 commercial motor vehicles and buses, as defined in Section 17 12372810, must pay road use fees pursuant to Article 23, 18 Chapter 37, Title 12 in lieu of ad valorem property taxes. The 19 provisions of this section do not apply to the transfer of 20 motor vehicle registrations as specified in Section 12372675 21 or to sales of motor vehicles by a licensed motor vehicle 22 dealer. Notice of the sales must be furnished to the 23 Department of Motor Vehicles by the dealer, along with 24 other documents necessary for the registration and licensing 25 of the vehicle concerned. The notice must be received by the 26 Department of Motor Vehicles as a prerequisite to the 27 registration and licensing of the vehicle and must include the 28 name and address of the purchaser, the vehicle identification 29 number, and the year and model of the vehicle. The notice 30 must be an original and one copy, and the copy must be 31 provided by the department to the auditor of the county in 32 which the vehicle is taxable. All ad valorem taxes on a 33 vehicle are due and payable one hundred twenty days from 34 the date of purchase. The notice and the time in which to pay 35 the tax applies to motor vehicles that are serviced and 36 delivered by a licensed motor vehicle dealer for the benefit of 37 an outofstate dealer.” 38

[3516] 28 1 K. The first paragraph of Section 12372650 of the 1976 2 Code is amended to read: 3 4 “The auditor shall prepare a tax notice of all vehicles 5 owned by the same person and licensed at the same time for 6 each tax year within the twoyear licensing period. A notice 7 must describe the motor vehicle by name, model, and 8 identification number. The notice must set forth the assessed 9 value of the vehicle, the millage, the taxes due on each 10 vehicle, and the license period or tax year. The notice must 11 be delivered to the county treasurer who must collect or 12 receive payment of the taxes. One copy of the notice must be 13 in the form of a bill or statement for the taxes due on the 14 motor vehicle and, when practical, the treasurer shall mail 15 that copy to the owner or person having control of the 16 vehicle. When the tax and all other charges included on the 17 tax bill have been paid, the treasurer shall issue the taxpayer 18 a paid receipt. The receipt or a copy may be delivered by the 19 taxpayer to the Department of Motor Vehicles with the 20 application for the motor vehicle registration. A record of the 21 payment of the tax must be retained by the treasurer. The 22 auditor shall maintain a separate duplicate for motor vehicles. 23 No A registration may not be issued by the Department of 24 Motor Vehicles unless the application is accompanied by the 25 receipt, a copy of the notification required by Section 26 12372610 or notice from the county treasurer, by other 27 means satisfactory to the Department of Motor Vehicles, of 28 payment of the tax. Motor vehicles registered under the 29 International Registration Plan may pay ad valorem property 30 taxes on a semiannual basis, and a proportional receipt must 31 be issued by the treasurer subject to penalties in Section 32 12372730. Large commercial motor vehicles and buses, as 33 defined in Section 12372810, must pay road use fees 34 pursuant to Article 23, Chapter 37, Title 12 in lieu of ad 35 valorem property taxes. The treasurer, tax collector, or other 36 official charged with the collection of ad valorem property 37 taxes in each county may delegate the collection of motor 38 vehicle taxes to banks or banking institutions, if each 39 institution assigns, hypothecates, or pledges to the county, as

[3516] 29 1 security for the collection, federal funds or federal, state, or 2 municipal securities in an amount adequate to prevent any 3 loss to the county from any cause. Each institution shall remit 4 the taxes collected daily to the county official charged with 5 the collections. The receipt given to the taxpayer, in addition 6 to the information required in this section and by Section 7 124570, must contain the name and office of the treasurer or 8 tax collector of the county and must also show the name of 9 the banking institution to which payment was made.” 10 11 L.(1) Notwithstanding any provision to the contrary within 12 this SECTION, a person who registers a vehicle for use in 13 this State pursuant to Article 23, Chapter 37, Title 12, as 14 amended by this act, must register his vehicle during calendar 15 year 2019 and is required to pay the road fees calculated 16 based on the fair market value of the vehicle as specified in 17 Sections 12372820 and 12372850 at the time the vehicle’s 18 registration fees are paid. 19 (2) Notwithstanding the provisions in Section 20 12372865(B) and (C), as contained in this SECTION, to the 21 contrary, during calendar year 2019 the first four hundred 22 thousand dollars of fee revenue collected pursuant to Section 23 12372865 must be retained by the Department of Motor 24 Vehicles to defray programming costs. 25 (3) The initial millage required by Section 12372850 must 26 be calculated on or before June 1, 2018. 27 28 M. This SECTION takes effect January 1, 2019, except that 29 the Department of Revenue, in consultation with the Revenue 30 and Fiscal Affairs Office, shall calculate the millage to be 31 used to calculate the road use fee provided in Section 32 12372850 by July 1, 2018. 33 34 SECTION 9. The first paragraph in Section 12282355(C), 35 before the first colon, is amended to read: 36 37 “(C)Notwithstanding any other provision of law, of the 38 fees collected pursuant to subsection (A) of this section, ten 39 percent must be transmitted by the Department of Revenue to

[3516] 30 1 the Department of Agriculture beginning upon the effective 2 date of this act for use as provided in Section 394170 and the 3 remainder of the fees must be credited to the Department of 4 Transportation State NonFederal Aid Highway Fund as 5 provided in the following schedule:” 6 7 SECTION 10. Section 1228530 of the 1976 Code is 8 repealed. 9 10 SECTION 11. Section 12282740 of the 1976 Code is 11 amended to read: 12 13 “(H)(1) For purposes of this subsection, ‘donor county’ 14 means a county that contributes to the ‘C’ fund an amount in 15 excess of what it receives under the allocation formula as 16 stated in subsection (A). In addition to the allocation to the 17 counties pursuant to subsection (A), the Department of 18 Transportation annually shall transfer from the state highway 19 fund to the donor counties an amount equal to nine and 20 onehalf seventeen million dollars in the ratio of the 21 individual donor county’s contribution in excess of ‘C’ fund 22 revenue allocated to the county under subsection (A) to the 23 total excess contributions of all donor counties. 24 (2) A county is eligible for an additional allocation from 25 the Department of Transportation if the county contributed to 26 the ‘C’ fund an amount in excess of what it receives under 27 the allocation formula as stated in subsection (A) plus what it 28 receives under item (1). The Department of Transportation 29 annually shall transfer to the eligible counties an amount up 30 to three and onehalf million dollars in the ratio of the 31 individual eligible county’s contribution to the ‘C’ fund in 32 excess of the eligible county’s total allocations under 33 subsection (A) and item (1) to the total excess contributions 34 of all eligible counties remaining after all allocations under 35 subsection (A) and item (1) have been made. Under no 36 circumstances can an allocation under this item result in an 37 eligible county receiving total allocations in excess of what 38 the county contributed to the ‘C’ fund.” 39

[3516] 31 1 SECTION 12. Article 3, Chapter 1, Title 57 of the 1976 2 Code is amended by adding: 3 4 “Section 571380. The Department shall prepare a 5 Transportation Asset Management Plan which includes 6 objectives and performance measures for the preservation 7 and improvement of the State Highway System. In addition, 8 the Transportation Asset Management Plan shall include 9 objectives, performance measures and innovative approaches 10 to address high risk rural roads that are functionally classified 11 as a rural Primary or Federal Aid Secondary roads. High risk 12 rural roads shall include roads in which the accidents 13 resulting in fatalities and incapacitating injuries exceeds the 14 statewide average, including roadway departures, for those 15 functional classes of roadway. The Transportation Asset 16 Management Plan shall be approved by the Commission and 17 is to establish fiscally constrained performance goals, 18 including fifty million dollars for high risk rural roads, for 19 transportation infrastructure assets such as pavements and 20 bridges. The Department shall provide an annual update on 21 achieving the Transportation Asset Management Plan 22 performance goals to the General Assembly as well as 23 publishing the results for the public to view.” 24 25 SECTION 13. Section 12282740 of the 1976 Code is further 26 amended by adding an appropriately lettered subsection at 27 the end to read: 28 29 “() Notwithstanding the provisions of subsection (A), on 30 July 1, 2018 and each July first thereafter until after July 1, 31 2021, the amount of proceeds of the user fee on gasoline only 32 as levied for in this chapter that must be deposited with the 33 State Treasurer and expended for the purposes of this section 34 must be increased by .3325 cents a gallon, until such time as 35 the total amount equals three and ninetynine onehundredths 36 cents a gallon. Any increase in proceeds resulting from the 37 provisions of this subsection must be used exclusively for 38 repairs, maintenance, and improvements to the state highway 39 system.”

[3516] 32 1 2 SECTION 14. A.Section1143167(B)(2) of the 1976 Code is 3 amended to read: 4 5 “(2) The Department of Transportation shall reduce the 6 allocation to the statefunded resurfacing program required in 7 item (1) in proportion to the amounts transferred to the South 8 Carolina Transportation Infrastructure Bank pursuant to 9 subsection (C) and in proportion to the amounts required by 10 the Department of Transportation to fund repairs, 11 maintenance, and improvements to the existing transportation 12 system.” 13 14 B.1. Section 1143165 of the 1976 Code is repealed. 15 16 2. This subsection 14.B.1. takes effect upon approval by the 17 Governor and first applies to Fiscal Year 20182019. 18 19 SECTION 15. A. Article 25, Chapter 6, Title 12 of the 20 1976 Code is amended by adding: 21 22 “Section 1263780. (A)(1) A resident taxpayer is allowed a 23 refundable income tax credit for preventative maintenance on 24 a private passenger motor vehicle as defined in Section 25 563630, including motorcycles, registered in this State during 26 the appropriate year, subject to other limitations contained in 27 this section. The total amount of the credit may not exceed 28 the lesser of: (i) the resident taxpayer’s actual motor fuel user 29 fee increase incurred for that motor vehicle as a result of 30 increases in the motor fuel user fee pursuant to Section 31 1228310(D) or (ii) the amount the resident taxpayer expends 32 on preventative maintenance. The resident taxpayer shall 33 claim the credit allowed by this section on the resident 34 taxpayer’s income tax return in a manner prescribed by the 35 department. The department may require any documentation 36 it deems necessary to implement the provisions of this 37 section. Notwithstanding any other provision of this section, 38 a resident taxpayer may claim the credit for up to two private 39 passenger motor vehicles, with the credit being calculated

[3516] 33 1 separately for each vehicle. For the purposes of this section, 2 ‘preventative maintenance’ includes costs incurred within 3 this State for new tires, oil changes, regular vehicle 4 maintenance, and the like. In addition, ‘motor fuel 5 expenditures’ are purchases of motor fuel within this State to 6 which the motor fuel user fee imposed pursuant to Section 7 1228310(D) applies. 8 (2) Notwithstanding any other provision of this section: 9 (a) For tax year 2018, the credit allowed by this 10 section may not exceed forty million dollars for all taxpayers. 11 (b) For tax year 2019, the credit allowed by this 12 section may not exceed sixtyfive million dollars for all 13 taxpayers. 14 (c) For tax year 2020, the credit allowed by this 15 section may not exceed eightyfive million dollars for all 16 taxpayers. 17 (d) For tax year 2021, the credit allowed by this 18 section may not exceed one hundred ten million dollars for 19 all taxpayers. 20 (e) For all tax years after 2021, the credit allowed by 21 this section may not exceed one hundred fourteen million 22 dollars for all taxpayers. 23 On or before September 30, 2018 and by September 24 thirtieth of each year thereafter, the Revenue and Fiscal 25 Affairs Office shall estimate the number of taxpayers 26 expected to claim the credit for the current tax year and the 27 total amount expected to be claimed. In the event that the 28 Revenue and Fiscal Affairs Office estimates that the total 29 amount of credits claimed will exceed the maximum amount 30 of aggregate credit allowed pursuant to this item, the 31 Revenue and Fiscal Affairs Office shall certify to the 32 Department of Revenue a pro rata adjustment to the credit 33 otherwise provided. 34 (B)(1) In order to offset the credit allowed by the section, 35 on or before January 31, 2019, and by January thirtyfirst of 36 each year thereafter, an amount of funds necessary to entirely 37 offset the estimated credit as certified by the Revenue and 38 Fiscal Affairs Office, must be transferred from the Safety 39 Maintenance Account to the Department of Revenue. If any

[3516] 34 1 funds exist in the Safety Maintenance Fund after all the 2 income tax credits are claimed for the year or if any 3 transferred funds still exist after all the income tax credits are 4 claimed for the year, the remainder must be credited to the 5 Infrastructure Maintenance Trust Fund. 6 (2) If the transferred funds pursuant to item (1) are not 7 sufficient to completely offset the credit, on or before 8 January 31, 2019, and by January thirtyfirst of each year 9 thereafter, the Department of Transportation shall transfer to 10 the Department of Revenue an amount equal to the total 11 amount of credits estimated by the Revenue and Fiscal 12 Affairs Office to be claimed for the applicable tax year minus 13 any amounts transferred pursuant to item (1). If the credit 14 claimed by all taxpayers in a tax year is less than the amounts 15 transferred pursuant to this item, then the excess shall revert 16 back from the Department of Revenue to the Department of 17 Transportation as soon as practicable within the same year 18 that the transfer occurred. 19 (C) Unless reauthorized by the General Assembly, the 20 credit allowed by this section may not be claimed for any tax 21 year beginning after 2022.” 22 23 B. Article 1, Chapter 11, Title 11 of the 1976 Code is 24 amended by adding: 25 26 “Section 1111240. (A) There is created in the State 27 Treasury the Safety Maintenance Account. This account is 28 separate and distinct from the general fund of the State and 29 all other funds. Earnings and interest on this fund must be 30 credited to it and any balance in this fund at the end of a 31 fiscal year carries forward in the fund in the succeeding fiscal 32 year, subject to the provision of Section 1263780(C). 33 Notwithstanding Section 563627, the account must be 34 credited any funds collected pursuant to Section 563627(D). 35 The funds in the account must only be appropriated to offset 36 the costs of the refundable income tax credit allowed 37 pursuant to Section 1263780. 38 (B) Notwithstanding subsection (A), after December 31, 39 2022, the Safety Maintenance Account shall no longer be

[3516] 35 1 credited funds collected pursuant to Section 563627(D). 2 Once the account has expended all its funds on the costs of 3 the credit or are transferred to the Infrastructure Maintenance 4 Trust Fund pursuant to Section 1263780(C), this section is 5 repealed.” 6 7 C. This SECTION takes effect upon approval by the 8 Governor, and subsection A first applies to tax years 9 beginning after 2017. 10 11 SECTION 16. A. Article 25, Chapter 6, Title 12 of the 12 1976 Code is amended by adding: 13 14 “Section 1263632. There is allowed as a nonrefundable 15 credit against the tax imposed pursuant to Section 126510 on 16 a fullyear resident individual taxpayer an amount equal to 17 one hundred twentyfive percent of the federal earned income 18 tax credit (EITC) allowed the taxpayer pursuant to Internal 19 Revenue Code Section 32.” 20 21 B. Notwithstanding Section 1263632 as added by this 22 SECTION, the percentage of the federal earned income tax 23 credit, for which the credit allowed by Section 1263632 is 24 based, must be phasedin in six equal installments of twenty 25 and eightythree hundredths percent each tax year until it is 26 fully phasedin in tax year 2023, with the twenty and 27 eightythree hundredths percent applying in tax year 2018. 28 29 C. This SECTION takes effect upon approval by the 30 Governor and applies to tax years beginning after 2017. 31 32 SECTION 17. A. Section 1263330(B)(1) of the 1976 Code 33 is amended to read: 34 35 “(1) thirty fifty thousand dollars; or” 36 37 B. Notwithstanding the increased multiplier of fifty 38 thousand dollars in Section 1263330(B)(1) as amended in 39 this SECTION, the increase must be phasedin in six equal

[3516] 36 1 installments of three thousand three hundred thirty three 2 dollars each tax year until it is fully phasedin in tax year 3 2023, with the first increase occurring in tax year 2018. 4 5 C. This SECTION takes effect upon approval by the 6 Governor and applies to tax years beginning after 2017. 7 8 SECTION 18. A. Section 1263385(A)(1) of the 1976 Code 9 is amended to read: 10 11 “(A)(1)(a) A student is allowed a refundable individual 12 income tax credit equal to twentyfive fifty percent, not to 13 exceed eight hundred fifty one thousand five hundred dollars 14 in the case of both fouryear institutions and twentyfive 15 percent, not to exceed three hundred fifty dollars in the case 16 of twoyear institutions, for tuition paid an institution of 17 higher learning or a designated institution as provided in this 18 section, during a taxable year. The amount of the tax credit 19 claimed up to the limits authorized in this section for any 20 taxable year may not exceed the amount of tuition paid 21 during that taxable year. 22 (b) The maximum amount of credits allowed by this 23 section for all taxpayers may not exceed forty million dollars 24 in tax year 2018. For all tax years after 2018, the maximum 25 amount of credits for all taxpayers may not exceed the 26 maximum amount in tax year 2018, plus a cumulative 27 amount equal to the percentage increase in the Higher 28 Education Price Index, not to exceed more than three percent 29 a year. If the total amount of credits claimed in a tax year 30 exceeds the maximum amount, then the amount of each 31 credit must be reduced proportionately. 32 (c) Notwithstanding any other provision of this 33 section, the Revenue and Fiscal Affairs Office annually shall 34 estimate a maximum credit that may be permitted under this 35 section for a taxable year based on the number of taxpayers 36 expected to claim the credit and the expected amount 37 claimed. The Revenue and Fiscal Affairs Office shall certify 38 the maximum credit to the Department of Revenue, and for 39 the applicable taxable year, the maximum credit amount must

[3516] 37 1 not exceed the lesser of the certified estimate or the 2 maximum amount set forth in subitem (a). If the certified 3 estimate exceeds the maximum amount set forth in subitem 4 (b), then the credit must be reduced by a prorata amount that 5 the certified estimate exceeds the maximum set forth in 6 subitem (b). 7 (g) The Commission on Higher Education, the State 8 Board for Technical and Comprehensive Education, and each 9 public institution of higher learning, as defined in Section 10 591035, must develop a plan to notify each student of the tax 11 credit allowed by this section and shall promote resources 12 that may be available on campus, or in the community, that 13 would assist students in applying for the tax credit as 14 applicable.” 15 16 B. This SECTION takes effect upon approval by the 17 Governor and applies to tax years beginning after 2017. 18 19 SECTION 19. A. Section 1237220(B) of the 1976 Code is 20 amended by adding an item at the end to read: 21 22 “(52)(a) 14.2857 percent of the property tax value of 23 manufacturing property assessed for property tax purposes 24 pursuant to Section 1243220(a)(1). For purposes of this item, 25 if the exemption is applied to real property, then it must be 26 applied to the property tax value as it may be adjusted 27 downward to reflect the limit imposed pursuant to Section 6, 28 Article X of the South Carolina Constitution, 1895; 29 (b) The revenue loss resulting from the exemption 30 allowed by this item must be reimbursed and allocated to the 31 political subdivisions of this State, including school districts, 32 in the same manner as the Trust Fund for Tax Relief, not to 33 exceed eightyfive million dollars per year. In calculating 34 estimated state individual and corporate income tax revenues 35 for a fiscal year, the Board of Economic Advisors shall 36 deduct amounts sufficient to account for the reimbursement 37 required by this item. 38 (c) Notwithstanding the exemption allowed by this 39 item, in any year in which reimbursements are projected by

[3516] 38 1 the Revenue and Fiscal Affairs Office to exceed the 2 reimbursement cap in subitem (b), the exemption amount 3 shall be proportionally reduced so as not to exceed the 4 reimbursement cap. 5 (d) Notwithstanding any other provision of law, 6 property exempted from property taxes in the manner 7 provided in this item is considered taxable property for 8 purposes of bonded indebtedness pursuant to Section 15, 9 Article X of the Constitution of this State.” 10 11 B. Notwithstanding the exemption amount allowed 12 pursuant to item (52) added pursuant to subsection A of this 13 SECTION, the percentage exemption amount is phased in in 14 six equal and cumulative percentage installments, applicable 15 for property tax years beginning after 2017. 16 17 C. This SECTION takes effect upon approval by the 18 Governor and first applies to property tax years beginning 19 after 2017. 20 21 SECTION 20. Section 571460 of the 1976 Code, relating to 22 the Department of Transportation Secretary’s evaluation and 23 approval of routine operation, maintenance, and emergency 24 repairs, is repealed. 25 26 SECTION 21. Section 571470 of the 1976 Code, relating to 27 the Department of Transportation Commission’s review of 28 routine maintenance and emergency repair requests approved 29 by the Secretary, is repealed. 30 31 SECTION 22. A. Section 571310(A) and (B) of the 1976 32 Code is amended to read: 33 34 “(A) The congressional districts of this State are 35 constituted and created Department of Transportation 36 Districts of the State, designated by numbers corresponding 37 to the numbers of the respective congressional districts. The 38 Commission of the Department of Transportation shall be 39 composed of:

[3516] 39 1 (1) one member from each transportation district and 2 one member from the State at large, all appointed by the 3 Governor, upon the advice and consent of the Senate, subject 4 to the provisions of Section 571325; and 5 (2) two members from the State at large, both appointed 6 by the Governor, upon the advice and consent of the General 7 Assembly. Each house must hold a separate confirmation 8 vote. 9 In making appointments to the commission, the Governor 10 shall take into account race, gender, and other demographic 11 factors, such as residence in rural or urban areas, so as to 12 represent, to the greatest extent possible, all segments of the 13 population of the State; however, consideration of these 14 factors in making an appointment in no way creates a cause 15 of action or basis for an employee grievance for a person 16 appointed or for a person who fails to be appointed. The 17 members of the commission shall represent the transportation 18 needs of the State as a whole and may not subordinate the 19 needs of the State to those of any particular area of the State. 20 (B) The atlarge appointment appointments made by the 21 Governor must be transmitted to the Joint Transportation 22 Review Committee Senate and the House of Representatives 23 for confirmation. 24 25 B. Section 571325 of the 1976 Code, as last amended by 26 Act 275 of 2016, is further amended to read: 27 28 “Section 571325. (A) The Governor shall submit his 29 transportation district appointees to the Senate and the House 30 of Representatives for referral. to the appropriate legislative 31 delegation. Legislative delegation for these purposes means 32 legislators residing in the congressional district 33 corresponding to the transportation district of the appointee. 34 (B) Upon receipt of a referral, the legislative delegation 35 shall meet to approve or disapprove the Governor’s 36 appointee. The question of whether to approve an appointee 37 may be taken up in a full delegation meeting or it may be 38 taken up separately by the Senators in the legislative 39 delegation and the members of the House of Representatives

[3516] 40 1 in the legislative delegation. To approve an appointee, the 2 appointee must receive a majority of the weighted vote of 3 only the Senators in the legislative delegation and a majority 4 of the weighted vote of only the members of the House of 5 Representatives in the delegation. The legislative delegation 6 shall report its findings to the Clerk of the House of 7 Representatives, Clerk of the Senate, and the Governor 8 whether the appointee was approved by the weighted vote of 9 the members of the legislative delegation from both the 10 House of Representatives and the Senate. If the legislative 11 delegation approves the Governor’s appointee, the 12 appointment shall be referred to the Joint Transportation 13 Review Committee. If the delegation disapproves the 14 appointee, the Governor shall make another appointment. If 15 the legislative delegation fails to approve of the Governor’s 16 appointee within fortyfive days of the appointee’s referral to 17 the delegation, the appointee is deemed to have been 18 disapproved. An appointee must receive a majority of the 19 weighted vote of the members of the legislative delegation 20 from both the House of Representatives and the Senate prior 21 to entering a term of office. 22 (C) For the purposes of this article, ‘legislative delegation’ 23 means legislators representing any portion of the 24 congressional district corresponding to the transportation 25 district the appointee was appointed to represent.” 26 27 C. Section 571340 of the 1976 Code, as last amended by 28 Act 275 of 2016, is amended further to read: 29 30 “Section 571340. Each commission member, within thirty 31 days after his appointment and confirmation, or approval by 32 the appropriate legislative delegation, as the case may be, and 33 before entering upon the discharge of the duties of his office, 34 shall take, subscribe, and file with the Secretary of State the 35 oath of office prescribed by the Constitution of the State.” 36 37 D. Article 7, Chapter 1, Title 57 of the 1976 Code, relating 38 to the Joint Transportation Review Committee, is repealed. 39

[3516] 41 1 SECTION 23. Section 571350 of the 1976 Code is amended 2 to read: 3 4 “Section 571350. (A) The commission may adopt an 5 official seal for use on official documents of the department. 6 (B) The commission shall elect a chairman and adopt its 7 own rules and procedures and may select such additional 8 officers to serve such terms as the commission may 9 designate. 10 (C) Commissioners must be reimbursed for official 11 expenses as provided by law for members of state boards and 12 commissions as established in the annual general 13 appropriations act. 14 (D) All commission members are eligible to vote on all 15 matters that come before the commission. 16 (E) The commission shall hold a minimum of six regular 17 meetings annually, and other meetings may be called by the 18 chair upon giving at least one week’s notice to all members 19 and the public. Emergency meetings may be held with 20 twentyfour hours’ notice. Meeting materials for the regularly 21 scheduled meetings shall be published at least twentyfour 22 hours in advance of the meeting. 23 (F) The commission or a member thereof may not enter 24 into the daytoday operations of the department, except in an 25 oversight role with the Secretary of Transportation, and is 26 specifically prohibited from taking part in: 27 (1) the awarding of contracts; 28 (2) the selection of a consultant or contractor or the 29 prequalification of any individual consultant or contractor; 30 (3) the selection of a route for a specific project; 31 (4) the specific location of a transportation facility; 32 (5) the acquisition of rightsofway or other properties 33 necessary for a specific project or program; and 34 (6) the granting, denial, suspension, or revocation of 35 any permit issued by the department. 36 (G) A member of the commission may not have any 37 interest, direct or indirect, in any contract, franchise, 38 privilege, or other benefit granted or awarded by the

[3516] 42 1 department during the member’s term of appointment and for 2 one year after the termination of the appointment.” 3 4 SECTION 24. Section 571360(B) of the 1976 Code is 5 amended to read: 6 7 “(B)(1) The chief internal auditor must be a Certified 8 Public Accountant and possess any other experience the State 9 Auditor may require. The chief internal auditor must 10 establish, implement, and maintain the exclusive internal 11 audit function of all departmental activities. The State 12 Auditor shall set the salary for the chief internal auditor as 13 allowed by statute or applicable law. 14 (2) The audits performed by the chief internal auditor 15 must comply with recognized governmental auditing 16 standards. The department and any entity contracting with 17 the department must fully cooperate with the chief internal 18 auditor in the discharge of his duties and responsibilities and 19 must timely produce all books, papers, correspondence, 20 memoranda, and other records considered necessary in 21 connection with an internal audit. All final audit reports must 22 be submitted to the commission and the Chairman of the 23 Senate Transportation Committee, the Chairman of the 24 Senate Finance Committee, the Chairman of the House of 25 Representatives Education and Public Works Committee, and 26 the Chairman of the House of Representatives Ways and 27 Means Committee before being made public. All final audit 28 reports shall be published on the department’s and the State 29 Auditor’s websites. 30 (3) The State Auditor is vested with the exclusive 31 management and control of the chief internal auditor.” 32 33 SECTION 25. Section 571430 of the 1976 Code is amended 34 to read: 35 36 “Section 571430. (A) The secretary is charged with the 37 affirmative duty to carry out the policies of the commission, 38 to administer the daytoday affairs of the department, to direct 39 the implementation of the Statewide Transportation

[3516] 43 1 Improvement Program and the Statewide Mass Transit Plan, 2 and to ensure the timely completion of all projects 3 undertaken by the department, and routine operation and 4 maintenance requests, and emergency repairs. He must 5 represent the department in its dealings with other state 6 agencies, local governments, special districts, and the federal 7 government. The secretary must prepare an annual budget for 8 the department that must be approved by the commission 9 before becoming effective. 10 (B) For each division, the secretary may employ such 11 personnel and prescribe their duties, powers, and functions as 12 he considers necessary and as may be authorized by statute 13 and for which funds have been authorized in the annual 14 general appropriations act. 15 (C) The secretary shall prepare and publish on the 16 department’s website an annual report outlining the 17 department’s annual expenditures. The report must include a 18 statewide summary and a detailed expenditure report for each 19 county. 20 (D) The secretary shall prepare and publish on the 21 department’s website an annual report that includes a list of 22 all companies doing business with the department and the 23 amount spent on these contracts.” 24 25 SECTION 26. Section 571330(B) of the 1976 Code is 26 amended to read: 27 28 “(B)The An atlarge commission member may be appointed 29 from any county in the State unless another commission 30 member is serving from that county. Failure by the an atlarge 31 commission member to maintain residence in the State shall 32 result in a forfeiture of his office. 33 Commission members may be removed from office at the 34 discretion of the Governor subject to the prior approval of the 35 appropriate legislative delegation.” 36 37 SECTION 27. The General Assembly finds that all the 38 provisions contained in this act relate to one subject as required by 39 Section 17, Article III of the South Carolina Constitution in that 40 each provision relates directly to or in conjunction with other

[3516] 44 1 sections relating to the subject of the effects of inadequate 2 infrastructure financing and oversight. 3 The General Assembly further finds that a common 4 purpose or relationship exists among the sections, 5 representing a potential plurality but not disunity of topics, 6 notwithstanding that reasonable minds might differ in 7 identifying more than one topic contained in the act. 8 9 SECTION 28. The repeal or amendment by this act of any 10 law, whether temporary or permanent or civil or criminal, 11 does not affect pending actions, rights, duties, or liabilities 12 founded thereon, or alter, discharge, release or extinguish any 13 penalty, forfeiture, or liability incurred under the repealed or 14 amended law, unless the repealed or amended provision shall 15 so expressly provide. After the effective date of this act, all 16 laws repealed or amended by this act must be taken and 17 treated as remaining in full force and effect for the purpose of 18 sustaining any pending or vested right, civil action, special 19 proceeding, criminal prosecution, or appeal existing as of the 20 effective date of this act, and for the enforcement of rights, 21 duties, penalties, forfeitures, and liabilities as they stood 22 under the repealed or amended laws. 23 24 SECTION 29. If any section, subsection, paragraph, 25 subparagraph, sentence, clause, phrase, or word of this act is 26 for any reason held to be unconstitutional or invalid, such 27 holding shall not affect the constitutionality or validity of the 28 remaining portions of this act, the General Assembly hereby 29 declaring that it would have passed this act, and each and 30 every section, subsection, paragraph, subparagraph, sentence, 31 clause, phrase, and word thereof, irrespective of the fact that 32 any one or more other sections, subsections, paragraphs, 33 subparagraphs, sentences, clauses, phrases, or words hereof 34 may be declared to be unconstitutional, invalid, or otherwise 35 ineffective. 36 37 SECTION 30. Except where specified otherwise, this act 38 takes effect July 1, 2017. 39

[3516] 45 1 /s/Sen. Paul G. Campbell, Jr. /s/Rep. James Todd 2 Rutherford 3 /s/Sen. Clarence Ross Turner III /s/Rep. J. Gary Simrill 4 /s/Sen. Vincent A. Sheheen /s/Rep. W. Brian White 5 On Part of the Senate. On Part of the House. 6 XX

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