The REALTOR® Voice: SCR Legislative Update for April 08, 2018

This Week in Review

Dear REALTOR®,

This week, the Senate furloughed while the House returned to tackle their lengthy contested calendar. The House worked solely on the floor and cleared off much of the calendar in order for legislation to meet the April 10, 2018 crossover date. Legislation that has not crossed over from its body of origination by next Tuesday will not be viable for passage in the 2018 session. The House will meet in regularly scheduled statewide session next week and the Senate will return Monday, April 09, 2018 to begin their debate on the state budget.

Please find below a comprehensive list of SCR’s 2018 Legislative Priorities as well as a recap of significant happenings at the State House.

As always, please do not hesitate to contact me if I can provide any additional information or you have any further questions.

Sincerely,

Lindsay Jackson
SCR Director of Government Affairs
ljackson@screaltors.org
803.361.0680

2018 SCR Legislative Priorities

The SCR Legislative Committee identified the following issues as top priorities for the 2018 session:

Homeowners Association Legislation (H.3886)
Issues and disputes regarding HOAs are an ongoing issue for REALTOR® membership and the real estate industry as a whole. H.3886, the SC Homeowners Association Act, is an important first step in providing uniformity, transparency, and relief for homeowners across the state. The bill would implement consistent guidelines that encourage good governance among HOAs and protect homeowners’ interests. The legislation provides the following protections:

• Requirement to record governing documents of the HOA. This provision clarifies that governing documents must be recorded with the Register of Deeds or Clerk of Court to be enforceable.

• Ability to resolve financial disputes between homeowners and HOAs in Magistrate Court

• Creation of a Homeowners Association Ombudsman within the Department of Consumer Affairs

• Requirement of 48-hour notice to homeowners prior to increasing the HOA annual budget

• Notice on the property disclosure statement by adding a check box to the current form that would notify a potential buyer if the property is subject to an HOA

*Bill Status: Passed the House (91-0); Senate Judiciary Committee Report: Favorable; Senate second reading (39-0). 

Prohibition of Eminent Domain for Petroleum Pipeline Companies (S.1101/H.5109)
In the 2016 session, SCR championed legislation that would prohibit private, unregulated petroleum pipeline companies from exercising eminent domain powers. The legislation that passed the General Assembly clarified existing South Carolina law and provided for a three-year moratorium, halting petroleum pipelines from using eminent domain to take the land and homes of South Carolina citizens.

Senators Young, Massey, and Hutto and Representative Hixon introduced legislation in the Senate and House to extend the current moratorium from June 2019 to November 2020. The continuing legislation would keep the ban intact, allowing lawmakers an additional 2-year session to work on a more comprehensive approach to a permanent ban.

SCR supports lawmakers in their efforts to protect private property rights and stands firm that eminent domain should only be exercised by government entities for public use, and only then in limited circumstances.

*Bill Status: S.1101 passed favorably out of Senate Judiciary Committee; Passed the Senate (41-0). House: Introduced, read the first time, and placed on the calendar without reference. Debate adjourned until Tuesday, April 10, 2018.

Beachfront Management Reform Act (H.4683/ S.927)
The Department of Health and Environmental Control (DHEC) is required by law to establish and review the position of the two lines of beachfront jurisdiction (the baseline and the setback line) once every seven to ten years. The purpose of the jurisdictional lines is to implement laws and regulations that support the state’s beachfront management goals.

DHEC released proposed changes to beachfront jurisdictional lines in October 2017. The changes would dramatically and in many cases, negatively impact coastal properties.

The lack of adequate data, compressed timeline, and permanent position of the baseline set at a future date put South Carolina’s coastal property owners at a huge disadvantage.

Senator Chip Campsen and Representative Lee Hewitt filed legislation in their respective bodies that address beachfront jurisdictional lines. Both bills set forth a transparent process in the establishment of new jurisdictional lines and establish parameters for the review and appeals process for property owners who may be adversely affected by changes.

The bill, as passed by the House, provides the following:

  • Allows DHEC to continue to use the baselines and setback lines established on January 31, 2012 for the current establishment cycle
  • Creates a transparent process for DHEC to follow in each new establishment cycle of proposed line changes
  • Provides adequate notification of proposed changes to the public
  • Sets a permanent baseline that would not move seaward from its position on December 31, 2017
  • Reinstates and establishes parameters for DHEC review and the appeals process
  • Requires DHEC to use data collected during previous cycles if an oceanfront area incurs extraordinary erosion due to the impact of a storm system or event named by the National Weather Service after June 1, 2018
  • Protects pending appeals by establishing that landowners have the ability to choose between the 2012 (current) lines and the proposed October 2017 lines

SCR supports lawmakers in their efforts to protect property rights and provide property owners and businesses adequate time and data to analyze potential repercussions from movement of the jurisdictional lines.

*Bill Status: S.927 was carried over in the Senate Environmental Subcommittee on 01.31.18
*Bill Status: H.4683 passed the House unanimously (98-0); Senate Environmental Subcommittee Report: Favorable as Amended; Full Senate Agriculture and Natural Resources Committee Report: Favorable as Amended.

House Calls Petroleum Pipeline (Eminent Domain) Legislation to the Floor

S.1101, regarding extension of the current moratorium on use of eminent domain for private, unregulated, petroleum pipeline companies, was introduced, read for the first time, and placed on the House calendar without reference this week. Representative Bill Hixon made a unanimous consent request to allow the bill to bypass the committee process to go directly before the full body. The legislation extends the current moratorium (June 30, 2019) until November 30, 2020. This will provide additional time (a full 2-year session) to work on passage of a permanent ban.

The House adjourned debate on the bill until Tuesday, April 10, 2018.

House Passes Santee Cooper Reform Legislation

This week, the House took up H.4376, a bill reforming the Public Service Authority/Santee Cooper Board. The bill retains the 12-member Santee Cooper Board but prohibits current members from serving after their term on the board expires and implements qualifications board members must meet to serve. The bill also requires all Santee Copper rates/charges to be approved by the Public Service Commission (PSC).

Several amendments were adopted on the floor including the creation of a nine member Santee Cooper Evaluation and Recommendation Committee. The committee would evaluate whether selling Santee Cooper is best for the state and its customers, determine which parts of Santee Cooper should be sold, and accept and review bids from potential purchasers through public hearings.

An additional amendments were adopted, providing the governor the authority to remove a member of the Santee Cooper Board as he/she sees fit and creating a Rate Reduction Stabilization Fund to mitigate the impact on electric rates attributable to the V.C. Summer project abandonment. H.4376 passed the House as amended by a vote of 107-7.

The bill now heads to the Senate for consideration.

House Debates South Carolina’s Solar Future

On Thursday, the House debated two bills, H.5045 and H.4421, both addressing solar energy by amending Act 236 “Distributed Energy Resource Act” passed in 2014 by the SC General Assembly. Act 236 allowed homeowners creating power through rooftop solar panels to sell energy back to a utility through a system known as ‘net-metering’ and implemented a 2% cap.

The House began with H.5045, SC Distributed Energy Resource Program, introduced by Chairman Bill Sandifer and considered by the House Labor, Commerce, and Industry (LCI) Committee. The bill eliminates subsidies preventing utility customers who do not utilize solar energy from paying for those customers that do. The bill also raises the 2% cap on net metering to 4%.  After much debate, a motion was made to continue the bill. By a vote of 61-39, the bill was continued.

The House then began their debate on H.4421, SC Electric Consumer Bill of Rights Act, introduced by Representative James Smith and considered by the House Judiciary Committee. H.4421 simply lifts the 2% cap on net-metering. The bill also charges the Office of Regulatory Staff (ORS) with revising current utility cost of service rate-making methodologies and provide recommendations to the Public Service Commission (PSC) on how to provide a system that supports fair allocation of costs and benefits for consumers who utilize solar energy. Chairman White offered an amendment deleting a section requiring utilities to develop an incentive program targeting specific groups to use solar energy.  Representative Atwater offered an amendment creating a “Renewable Energy Development Joint Study Committee” made up of 36 members including members from the Legislature, government agencies, the solar industry, small businesses, conservation groups, and utilities. The study committee is charged with providing a report of their findings and recommendations to the General Assembly by January 08, 2019.  Both amendments were adopted and the House gave a second reading to bill as amended by a vote of 64-33. The bill awaits a third reading from the House before crossing over to the Senate for consideration.

2018 REALTOR® Delegation Days

After much success in 2017, our Government Affairs Team is proud to continue REALTOR® Delegation Days in the 2018 session. Keeping our membership active in the political process and facilitating meetings with local legislative delegations at the State Capitol are key in maintaing current relationships and fostering new relationships with our elected officials.

Please see below for the preliminary agenda and event dates.  For more information on your local Delegation Day, please contact your AE or GAD.

Agenda
11:30am-12:00pm– Issues briefing from the SCR Government Affairs Team
12:00pm-1:00pm– Meet with Local Delegation in the State House Lobby
1:00pm-2:00pm– Lunch at the Capital City Club

April  
04.10.18    Central Carolina Association of REALTORS®
04.11.18    Charleston Trident Association of REALTORS®
04.17.18    Western Upstate Association of REALTORS®
04.24.18    Greater Greenville Association of REALTORS®

May
05.01.18    Spartanburg Association of REALTORS®