SCWF Government Relations Manager Trip King
The second half of the legislative session began in January 2022, and we already have a lot of positive news to share! See below for an in-depth report from SCWF Government Relations Manager Trip King:
The much-anticipated South Carolina Conservation Enhancement Act was introduced in both the House and the Senate earlier this month. The Senate version, S.1039, is sponsored by Senator Chip Campsen, Chairman of the Senate Fish, Game and Forestry Committee, has 26 co-sponsors, and has been referred to the Senate Finance Committee. The House version, H.4956, which is sponsored by Representative Murrell Smith, currently has 9 co-sponsors and has been referred to the House Ways and Means Committee of which Rep. Smith is Chairman.
Both versions of the legislation would restore the deed recording fee funding mechanism that was the primary funding source for the South Carolina Conservation Bank (SCCB) from 2004 to its re-authorization in 2018 when the Bank was made a permanent state agency and funding was shifted to an annual appropriation by the General Assembly. Reinstatement of this funding mechanism would mean that the Bank would receive annually 25 cents of every $1.30 collected by the state from real estate transfer fees, or deed recording fees, which the state’s Bureau of Economic Advisors estimates would have generated some $22M for the Conservation Bank in FY 2021-2022.
Additionally, both the House and Senate versions of the Conservation Enhancement Act would add the Secretary of Commerce, the Secretary of Transportation, and the Commissioner of Agriculture, or their designees, as ex-officio members of the Conservation Bank’s board, joining the Chairman of the SC Department of Natural Resources (SCDNR) board, the Chairman of the SC Forestry Commission, and the Director of Parks, Recreation and Tourism (SCPRT) who are already designated by stature as SCCB ex-officio board members. This would increase the number of Board members from the current fourteen to seventeen.
Governor McMaster spoke in support of the Conservation Enhancement Act at a recent press conference.
The Senate bill would create a “carve-out” from existing sales taxes collected by the state. Basically, all sales taxes collected that are attributed to the sale of outdoor recreational equipment (North American Industry Classification System with code 451110) would be credited to a Natural Resources Enhancement Fund account established in the State Treasury. The collected funds would be dedicated for the purpose “of capital improvements on parks, forests, wildlife management areas, and heritage preserves that are owned, leased, or managed for public use by an agency of the State (the SCDNR, Forestry Commission, and SCPRT). Further, capital improvements means “activities that require the expenditure of $50,000 or more and that serve to create, improve, or restore access to public lands and waters, facilities, natural resources including fish and wildlife populations, or recreational opportunities.” The House version does not include similar language.
If passed, the goal of both bills is to restore a dedicated stream of funding to the South Carolina Conservation Bank so it can increase its role in protecting and preserving threatened lands in South Carolina by facilitating the fee simple purchase of properties and conservation easements by qualified entities. The sales tax provision included in the Senate bill is designed to generate funds that can be used by the SCDNR, Forestry Commission and SCPRT to catch up on deferred maintenance on public use lands and to provide enhancements of those properties that will create better access and more recreational opportunities for the public.
Both of these conservation bills enjoy broad support from legislators, the conservation community, and the public, and have the backing on Governor McMaster. However, the introduction of these bills comes fairly late in the legislative process as we approach May 12 when the General Assembly must adjourn and conclude their business in the current two-year legislative session. SCWF and our partners in the conservation community have strongly advocated for this type of legislation for several years now and we sincerely appreciate the efforts of Senator Campsen and Representative Smith to get these bills written and introduced in their respective legislative chambers. If the Conservation Enhancement Act is not enacted this year because of time constraints, we feel confident the bills will be re-introduced in 2023 and passed by the General Assembly at that time.
Mining Activity Near Parks/Green Space
House bill H. 3892 would prohibit the SC Department of Heath and Environmental Control (DHEC) from issuing a certificate of exploration, general mining permit, operating permit, or any other permit for exploration or mining activities on affected land within two miles of any park, preserve, green space, or other protected natural area owned or managed by the United States, the State, a county, a municipality, another political subdivision, or any other public entity. Bottom line, if enacted into law, this legislation would prohibit DHEC from issuing permits to resource extraction companies or any other companies for the purpose of engaging in mining activities within two miles of parks and/or green spaces. The bill was sponsored by Representatives Yow and Hewitt and has numerous House co-sponsors. A similar bill, S.1051, was introduced in the Senate, but the House bill is the one that has seen movement so far this year. H.3892 was given a Subcommittee hearing in the House Agriculture, Natural Resources and Environmental Affairs Committee earlier in February and is now awaiting full Committee consideration. One issue that seems to be holding up the bill is the definition of a park or green space since the original language offers little specificity. Sponsors are working with a number of stakeholders in an effort to come up with a reasonable and acceptable definition of these areas. SCWF supports this bill and is advocating for its passage this year. South Carolina’s mining laws haven’t been updated since the 1970s, and this bill would add a significant layer of protection to our parks, sensitive wildlife areas, nature preserves and other similar properties from encroachment by mining operations. As the Post and Courier recently stated in an editorial, “Growth is a sign of success, but it also comes with problems that can threaten our quality of life. Rep. Hewitt’s bill (H.3892) would provide some important safeguards. We urge lawmakers to make it as strong as they can and pass it.”
SC Department of Natural Resources – Promulgated Regulations Applicable to Specific Properties
The SCDNR recently proposed new regulations that would restrict certain activities on several specific lands which DNR owns or manages. These regulations were unanimously approved by the DNR board last year and were forwarded to the General Assembly for review and consideration (all promulgated regulations or changes in existing regulations must be approved or rejected by the Legislature). Specifically, DNR has proposed to ban dogs, either completely or during shorebird nesting and migration season, from several barrier islands where threatened and endangered bird species nest and migrate. SCWF supports these new regulations which will add a layer of protection for these shorebirds during a critical time in their life. The presence of dogs on these remote properties is a direct threat to shorebird activity and to the places they depend on to nest and rest during their long migration journey. The House Regulations and Administrative Procedures Committee recently unanimously approved these regulations and the Senate Fish, Game and Forestry Committee will soon visit the issue.
County Green Space Sales Tax Act
As previously reported, S.152, the County Green Space Sales Tax Act, overwhelmingly passed the Senate last year and was sent to the House of Representatives where it was referred to the House Ways and Means Committee. If enacted, this legislation would allow county governments, upon a successful county-wide referendum, to impose up to a 1% sales and use tax specifically earmarked for the acquisition of land and green spaces within the county. S.152 would give counties a significant tool and the financial ability to protect and preserve threatened lands within their borders from unwanted and burgeoning development. The House Ways and Means Committee has yet to schedule hearing on this Act, but we anticipate their consideration of this bill once the state budget is complete. SCWF strongly supports this legislative initiative and has advocated for its passage.
FY 2022-2023 Annual Appropriations Bill (as reported out of the House Ways and Means Committee)
On February 24, the House Ways and Means Committee favorably reported out their version of the FY 2022-2023 budget which will now be considered by the full House of Representatives and will be sent to the Senate upon a favorable vote on the House floor.
The proposed FY 2022-2023 budget is a big win for conservation and land protection measures. The SC Conservation Bank, which entered the budgeting process with a baseline budget of a little over $9M, received additional appropriations of $2M in recurring funds and $30M in one-time non-recurring funds by the Ways and Means Committee. This is a significant increase in appropriated funding over previous years. The Committee awarded the SCDNR $68.25M in one-time non-recurring funds for land conservation. And the Office of Resilience is set to receive $87.5M in the annual budget as well as $100M in approved funding from the American Rescue Plan Act for the acquisition of floodplain properties in the state. All in all, the ability for the state to move forward on land preservation and conservation initiatives will be greatly enhanced by this proposed budget.