Amend the bill, as and if amended, page 2, line 10 by adding:
/ Whereas, this act is a comprehensive approach to address the effect that the deteriorating transportation infrastructure system has on our State and its residents, tourists, and economy; and
Whereas, our transportation infrastructure system has begun to deteriorate, causing safety and economic problems. It is time to focus the resources of our State in an efficient, effective manner to stop that deterioration and to set our State on the path toward building a first-class road network that is the envy of the nation; and
This act will provide the Department of Transportation with the resources it needs to effectively and immediately address the highway, road, and bridge maintenance and construction needs and to enable the department to provide safe and high-quality infrastructure for the decades ahead; and
Whereas, the hazardous road conditions found throughout our State endanger residents and visitors alike. This act recognizes that safety is a paramount concern to drivers traversing the State and must also be a priority when the Department of Transportation identifies projects to undertake; and
Whereas, this act makes necessary reforms to the Department of Transportation's operational footprint to provide a more effective, efficient delivery of services free from conflicts of interest that undermine the public's confidence that the taxes that they pay are being applied in a fair, even-handed manner across the State; and
Whereas, the revenue generated by this act will provide the Department of Transportation with additional resources, but it will also place an additional financial burden on the State's taxpayers. This act strikes an appropriate balance between the needs of our transportation infrastructure and the needs of the taxpayers by providing targeted tax relief that will stimulate economic growth, which, in turn, will generate revenue growth from the sales of motor vehicles, from the sale of fuel for motor vehicles, and from other provisions contained in this act; and
Whereas, this act allocates to the Department of Transportation adequate resources to build and maintain a safe highway system for the residents of our State while preserving for taxpayers the means to engage in commerce and other daily activities that provide the Department of Transportation with those resources. Now, therefore, /
Amend the bill further, as and if amended, page 3, by striking lines 22-29 and inserting:
/ (2) The provisions of item (E)(1) must be suspended by the Director of the Department of Revenue if they result in the motor fuel user fee exceeding the same in any North Carolina county bordering South Carolina or any Georgia county bordering South Carolina. The suspension must remain in place until such time as the motor fuel user fees in all North Carolina counties bordering South Carolina and all Georgia counties bordering South Carolina are greater than South Carolina's motor fuel user fee."
Amend the bill further, as and if amended, page 16, by striking lines 39-40 and inserting:
/ Section 12-37-2870. The distribution of the fee revenues required to be distributed pursuant to Section 12-37-2865 for /
Amend the bill further, as and if amended, by adding appropriately numbered new SECTIONS to read:
SECTION __. Section 12-28-2740 of the 1976 Code is amended to read:
"(H)(1) For purposes of this subsection, 'donor county' means a county that contributes to the 'C' fund an amount in excess of what it receives under the allocation formula as stated in subsection (A). In addition to the allocation to the counties pursuant to subsection (A), the Department of Transportation annually shall transfer from the state highway fund to the donor counties an amount equal to nine and one-half seventeen million dollars in the ratio of the individual donor county's contribution in excess of 'C' fund revenue allocated to the county under subsection (A) to the total excess contributions of all donor counties.
(2) A county is eligible for an additional allocation from the Department of Transportation if the county contributed to the 'C' fund an amount in excess of what it receives under the allocation formula as stated in subsection (A) plus what it receives under item (1). The Department of Transportation annually shall transfer to the eligible counties an amount up to three and one-half million dollars in the ratio of the individual eligible county's contribution to the 'C' fund in excess of the eligible county's total allocations under subsection (A) and item (1) to the total excess contributions of all eligible counties remaining after all allocations under subsection (A) and item (1) have been made. Under no circumstances can an allocation under this item result in an eligible county receiving total allocations in excess of what the county contributed to the 'C' fund."
SECTION __. Article 3, Chapter 1, Title 57 of the 1976 Code is amended by adding:
"Section 57-1-380. The Department shall prepare a Transportation Asset Management Plan which includes objectives and performance measures for the preservation and improvement of the State Highway System. In addition, the Transportation Asset Management Plan shall include objectives, performance measures and innovative approaches to address high risk rural roads that are functionally classified as a rural Primary or Federal Aid Secondary roads. High risk rural roads shall include roads in which the accidents resulting in fatalities and incapacitating injuries exceeds the statewide average, including roadway departures, for those functional classes of roadway. The Transportation Asset Management Plan shall be approved by the Commission and is to establish fiscally constrained performance goals, including $50 million for high risk rural roads, for transportation infrastructure assets such as pavements and bridges. The Department shall provide an annual update on achieving the Transportation Asset Management Plan performance goals to the General Assembly as well as publishing the results for the public to view."
SECTION __. Section 12-28-2740 of the 1976 Code is further amended by adding an appropriately lettered subsection at the end to read:
"( ) Notwithstanding the provisions of subsection (A), on July 1, 2018 and each July first thereafter until after July 1, 2021, the amount of proceeds of the user fee on gasoline only as levied for in this chapter that must be deposited with the State Treasurer and expended for the purposes of this section must be increased by .3325 cents a gallon, until such time as the total amount equals three and ninety-nine one-hundredths cents a gallon. Any increase in proceeds resulting from the provisions of this subsection must be used exclusively for repairs, maintenance, and improvements to the state highway system."
SECTION __. Section11-43-167(B)(2) of the 1976 Code is amended to read:
"(2) The Department of Transportation shall reduce the allocation to the state-funded resurfacing program required in item (1) in proportion to the amounts transferred to the South Carolina Transportation Infrastructure Bank pursuant to subsection (C) and in proportion to the amounts required by the Department of Transportation to fund repairs, maintenance, and improvements to the existing transportation system."
SECTION __. A. Article 31, Chapter 28, Title 12 of the 1976 Code is amended by adding:
Section 12-28-3110. (A)(1) A taxpayer is allowed a refundable credit against the motor fuel user fees imposed pursuant to this chapter for preventative maintenance on a private passenger motor vehicle as defined in Section 56-3-630, including motorcycles, registered in this State during the appropriate year, subject to other limitations contained in this section. The total amount claimed for a vehicle may not exceed one hundred fifty percent of the resident's actual motor fuel user fee increase incurred for that motor vehicle as a result of increases in the motor fuel user fee pursuant to Section 12-28-310(D). To claim the credit contained in this section, a taxpayer shall provide an itemized list of the vehicle maintenance and motor fuel expenditures incurred within this State during the immediately preceding year in a manner, on a form prescribed by the Department of Revenue, with a South Carolina income tax return, and with necessary documentation to include proof of purchases. Notwithstanding any other provision of this section, a taxpayer may claim the credit for up to five private passenger motor vehicles, with the credit being calculated separately for each vehicle. For the purposes of this section, 'preventative maintenance' includes costs incurred within this State for new tires, oil changes, regular vehicle maintenance, and the like. In addition, 'motor fuel expenditures' are purchases of motor fuel within this State to which the motor fuel user fee imposed pursuant to Section 12-28-310(D) applies.
(2) Notwithstanding any other provision of this section:
(a) For tax year 2018, the credit allowed by this section may not exceed one hundred sixty million dollars.
(b) For tax year 2019, the credit allowed by this section may not exceed two hundred forty million dollars.
(c) For tax year 2020, the credit allowed by this section may not exceed three hundred twenty million dollars.
(d) For tax year 2021, the credit allowed by this section may not exceed three hundred ninety million dollars.
(e) For all tax years after 2021, the credit allowed by this section may not exceed four hundred sixty-five million dollars.
On or before September 30, 2018 and by September thirtieth of each year thereafter, the Revenue and Fiscal Affairs Office shall estimate the number of taxpayers expected to claim the credit for the current tax year and the total amount expected to be claimed. In the event that the Revenue and Fiscal Affairs Office estimates that the total amount of credits claimed will exceed the maximum amount of aggregate credit allowed pursuant to this item, the Revenue and Fiscal Affairs Office shall certify to the Department of Revenue a pro rata adjustment to the credit otherwise provided.
(B)(1) In order to offset the credit allowed by the section, on or before January 31, 2019 and by January thirty-first of each year thereafter, the Department of Transportation shall transfer to the Department of Revenue an amount equal to the total amount of credits estimated by the Revenue and Fiscal Affairs Office to be claimed for the applicable tax year, not to exceed one hundred fifty million dollars. If the credit claimed by all taxpayers in a tax year is less than one hundred fifty million dollars, then the excess shall revert back from the Department of Revenue to the Department of Transportation as soon as practicable within the same year that the transfer occurred.
(2) If the transferred funds pursuant to item (B)(1) are not sufficient to completely offset the credit and if balances in the Capital Reserve Fund are available for appropriation by the General Assembly, then it is the intent of the General Assembly to offset the remaining credit amount from the Capital Reserve Fund as the first order of priority in appropriation from the Capital Reserve Fund."
B. This SECTION takes effect upon approval by the Governor and applies to tax years after tax year 2017.
SECTION __. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3632. There is allowed as a nonrefundable credit against the tax imposed pursuant to Section 12-6-510 on a full-year resident individual taxpayer an amount equal to two hundred and fifty percent of the federal earned income tax credit (EITC) allowed the taxpayer pursuant to Internal Revenue Code Section 32."
B. Notwithstanding Section 12-6-3632 as added by this SECTION, the percentage of the federal earned income tax credit, for which the credit allowed by Section 12-6-3632 is based, must be phased-in in six equal installments of forty-one and sixty seven hundredths of a percent each tax year until it is fully phased-in in tax year 2023, with the first forty-one and sixty seven hundredths of a percent applying in tax year 2018.
C. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2017.
SECTION __. A. Section 12-6-3330(B)(1) of the 1976 Code is amended to read:
"(1) thirty fifty thousand dollars; or"
B. Notwithstanding the increased multiplier of fifty thousand dollars in Section 12-6-3330(B)(1) as amended in this SECTION, the increase must be phased-in in six equal installments of three thousand three hundred thirty three dollars each tax year until it is fully phased-in in tax year 2023, with the first increase occurring in tax year 2018.
C. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2017.
SECTION __. A. Section 12-6-3385(A)(1) of the 1976 Code is amended to read:
"Section 12-6-3385. (A)(1)(a) A student is allowed a refundable individual income tax credit equal to twenty-five percent, not to exceed eight hundred fifty dollars in the case of both four-year institutions and twenty-five percent, not to exceed three hundred fifty dollars in the case of two-year institutions, for tuition paid an institution of higher learning or a designated institution as provided in this section, during a taxable year. The amount of the tax credit claimed up to the limits authorized in this section for any taxable year may not exceed the amount of tuition paid during that taxable year. The maximum amount of credits allowed by this section for all taxpayers may not exceed seven million dollars in tax year 2018, fourteen million dollars in tax year 2019, twenty-one million dollars in tax year 2020, twenty-eight million dollars in tax year 2021, thirty-five million dollars in tax year 2022, and forty million dollars in tax year 2023. For all tax years after 2023, the maximum amount of credits for all taxpayers may not exceed the maximum amount in tax year 2023, plus a cumulative amount equal to the percentage increase in the Higher Education Price Index, not to exceed more than three percent a year. If the total amount of credits claimed in a tax year exceeds the maximum amount, then the amount of each credit must be reduced proportionately.
(b)(i) In tax year 2018, the amount of the credit is equal to thirty-five percent of the tuition paid, not to exceed one thousand five hundred dollars.
(ii) In tax year 2019, the amount of the credit is equal to forty-five percent of the tuition paid, not to exceed one thousand seven hundred dollars.
(iii) In tax year 2020, the amount of the credit is equal to fifty-five percent of the tuition paid, not to exceed one thousand nine hundred dollars.
(iv) In tax year 2021, the amount of the credit is equal to sixty-five percent of the tuition paid, not to exceed two thousand one hundred dollars.
(v) In tax year 2022, the amount of the credit is equal to seventy percent of the tuition paid, not to exceed two thousand three hundred dollars.
(vi) In all tax years after 2022, the amount of the credit is equal to seventy-five percent of the tuition paid, not to exceed two thousand five hundred dollars.
(c) In addition to the credit allowed pursuant to subitem (a), a student, including a student who is a dependent of a taxpayer as provided in item (3), that claims the earned income tax credit (EITC) allowed, pursuant to Internal Revenue Code Section 32, and attends a two-year institution may add an additional twenty-five percent to the percentage allowed in subitem (a), subject to the maximum amounts set forth in subitems (a) and (b).
(d) In addition to the credit allowed pursuant to subitems (a) and (c), an eligible student attending a four-year institution who is at least a sophomore and who is majoring in a science, technology, engineering, or mathematics (STEM) related discipline, as those terms are defined by the Commission on Higher Education pursuant to Section 59-149-15, may claim a credit of up to one thousand two hundred fifty dollars, not to exceed the cost of tuition paid and subject to the maximum amount set forth in subitem (a).
(e) In addition to the credit allowed pursuant to subitems (a) and (c), an eligible student attending a two-year institution who has earned enough credits to be considered a second year student and who is pursuing an associate degree in a STEM-related discipline, as those terms are defined by the Commission on Higher Education pursuant to Section 59-149-15, may claim an additional credit of up to one thousand two hundred fifty dollars, not to exceed the cost of tuition paid and subject to the maximum amount set forth in subitem (a).
(f) Notwithstanding any other provision of this section, the Revenue and Fiscal Affairs Office annually shall estimate a maximum credit that may be permitted under this section for a taxable year based on the number of taxpayers expected to claim the credit and the expected amount claimed. The Revenue and Fiscal Affairs Office shall certify the maximum credit to the Department of Revenue, and for the applicable taxable year, the maximum credit amount must not exceed the lesser of the certified estimate or the maximum amount set forth in subitem (a). If the certified estimate exceeds the maximum amount set forth in subitem (a), then the credits set forth in subitems (b), (c), (d), and (e) each must be reduced by the same percentage that the certified estimate exceeds the maximum set forth in subitem (a).
(g) The Commission on Higher Education, the State Board for Technical and Comprehensive Education, and each public institution of higher learning, as defined in Section 59-103-5, must develop a plan to notify each student of the tax credit allowed by this section and shall promote resources that may be available on campus, or in the community, that would assist students in applying for the tax credit as applicable."
B. This SECTION takes effect upon approval by the Governor and applies to tax years beginning after 2017.
SECTION __. A. Section 12-37-220(B) of the 1976 Code is amended by adding an item at the end to read:
"(52)(a) nineteen and five one-hundredths percent of the property tax value of manufacturing property assessed for property tax purposes pursuant to Section 12-43-220(a)(1). For purposes of this item, if the exemption is applied to real property, then it must be applied to the property tax value as it may be adjusted downward to reflect the limit imposed pursuant to Section 6, Article X of the South Carolina Constitution, 1895;
(b) nine and one-half percent of the property tax value of business personal property required to be reported and returned annually to the Department of Revenue or county auditors assessed for property tax purposes pursuant to Section 12-43-220(f);
(i) The revenue loss resulting from the exemption allowed by this item must be reimbursed and allocated to the political subdivisions of this State, including school districts, in the same manner as the Trust Fund for Tax Relief, not to exceed eighty-five million dollars per year. In calculating estimated state individual and corporate income tax revenues for a fiscal year, the Board of Economic Advisors shall deduct amounts sufficient to account for the reimbursement required by this item.
(ii) Notwithstanding the exemption allowed by this item, in any year in which reimbursements are projected by the Revenue and Fiscal Affairs Office to exceed the reimbursement cap in sub-item (i), the exemption amounts shall be proportionally reduced so as not to exceed the reimbursement cap.
(iii) Notwithstanding any other provision of law, property exempted from property taxes in the manner provided in this item is considered taxable property for purposes of bonded indebtedness pursuant to Section 15, Article X of the Constitution of this State."
B. Notwithstanding the exemption amount allowed pursuant to item (52)(a) added pursuant to subsection A of this SECTION, the percentage exemption amount is phased in in two equal and cumulative percentage installments, pursuant to subsection (B), applicable for property tax years beginning after 2018.
C. This SECTION takes effect upon approval by the Governor and first applies to property tax years beginning after 2018.
SECTION __. Section 57-1-460 of the 1976 Code, relating to the Department of Transportation Secretary's evaluation and approval of routine operation, maintenance, and emergency repairs, is repealed.
SECTION __. Section 57-1-470 of the 1976 Code, relating to the Department of Transportation Commission's review of routine maintenance and emergency repair requests approved by the Secretary, is repealed.
SECTION __. Section 57-1-310(A) of the 1976 Code is amended to read:
"Section 57-1-310. (A) The congressional districts of this State are constituted and created Department of Transportation Districts of the State, designated by numbers corresponding to the numbers of the respective congressional districts. The Commission of the Department of Transportation shall be composed of one member from each transportation district and one member from the State at large, all appointed by the Governor, upon the advice and consent of the Senate, subject to the provisions of Section 57-1-325. In making appointments to the commission, the Governor shall take into account race, gender, and other demographic factors, such as residence in rural or urban areas, so as to represent, to the greatest extent possible, all segments of the population of the State; however, consideration of these factors in making an appointment in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The members of the commission shall represent the transportation needs of the State as a whole and may not subordinate the needs of the State to those of any particular area of the State."
SECTION __. Section 57-1-350 of the 1976 Code is amended to read:
"Section 57-1-350. (A) The commission may adopt an official seal for use on official documents of the department.
(B) The commission shall elect a chairman and adopt its own rules and procedures and may select such additional officers to serve such terms as the commission may designate.
(C) Commissioners must be reimbursed for official expenses as provided by law for members of state boards and commissions as established in the annual general appropriations act.
(D) All commission members are eligible to vote on all matters that come before the commission.
(E) The commission shall hold a minimum of six regular meetings annually, and other meetings may be called by the chair upon giving at least one week's notice to all members and the public. Emergency meetings may be held with twenty-four hours' notice. Meeting materials for the regularly scheduled meetings shall be published at least twenty-four hours in advance of the meeting.
(F) The commission or a member thereof may not enter into the day-to-day operations of the department, except in an oversight role with the secretary, and is specifically prohibited from taking part in:
(1) the awarding of contracts;
(2) the selection of a consultant or contractor or the prequalification of any individual consultant or contractor;
(3) the selection of a route for a specific project;
(4) the specific location of a transportation facility;
(5) the acquisition of rights-of-way or other properties necessary for a specific project or program; and
(6) the granting, denial, suspension, or revocation of any permit issued by the department.
(G) A member of the commission may not have any interest, direct or indirect, in any contract, franchise, privilege, or other benefit granted or awarded by the department during the term of his appointment and for one year after the termination of the appointment."
SECTION __. Section 57-1-360(B) of the 1976 Code is amended to read:
"(B)(1) The chief internal auditor must be a Certified Public Accountant and possess any other experience the State Auditor may require. The chief internal auditor must establish, implement, and maintain the exclusive internal audit function of all departmental activities. The State Auditor shall set the salary for the chief internal auditor as allowed by statute or applicable law.
(2) The audits performed by the chief internal auditor must comply with recognized governmental auditing standards. The department and any entity contracting with the department must fully cooperate with the chief internal auditor in the discharge of his duties and responsibilities and must timely produce all books, papers, correspondence, memoranda, and other records considered necessary in connection with an internal audit. All final audit reports must be submitted to the commission and the Chairman of the Senate Transportation Committee, the Chairman of the Senate Finance Committee, the Chairman of the House of Representatives Education and Public Works Committee, and the Chairman of the House of Representatives Ways and Means Committee before being made public. All final audit reports shall be published on the department's and the State Auditor's websites.
(3) The State Auditor is vested with the exclusive management and control of the chief internal auditor."
SECTION __. Section 57-1-430 of the 1976 Code is amended to read:
"Section 57-1-430. (A) The secretary is charged with the affirmative duty to carry out the policies of the commission, to administer the day-to-day affairs of the department, to direct the implementation of the Statewide Transportation Improvement Program and the Statewide Mass Transit Plan, and to ensure the timely completion of all projects undertaken by the department, and routine operation and maintenance requests, and emergency repairs. He must represent the department in its dealings with other state agencies, local governments, special districts, and the federal government. The secretary must prepare an annual budget for the department that must be approved by the commission before becoming effective.
(B) For each division, the secretary may employ such personnel and prescribe their duties, powers, and functions as he considers necessary and as may be authorized by statute and for which funds have been authorized in the annual general appropriations act.
(C) The secretary shall prepare and publish on the department's website an annual report outlining the department's annual expenditures. The report must include a statewide summary and a detailed expenditure report for each county.
(D) The secretary shall prepare and publish on the department's website an annual report that includes a list of all companies doing business with the department and the amount spent on these contracts." /
Renumber sections to conform.
Amend title to conform.